The basic steps for transferring a balance
To transfer a balance, you contact the card you want to move the debt to, tell them the account number and balance of the card you're paying off, and they handle the transfer directly to that creditor. You don't move money yourself. The new card's issuer pays your old card's balance in full, and you then owe that amount to the new card instead.
The process usually takes 5 to 14 business days from the time you request it. During that window, keep making payments on your original card—the transfer isn't complete until the old issuer receives the payment from the new card's company. Once it posts, your old card balance drops to zero and the new card shows the transferred amount.
Most balance transfer offers come with a promotional interest rate—often 0% for 6 to 21 months, depending on the card and your creditworthiness. That period is your window to pay down the debt without interest charges piling up. After the promotional period ends, the regular purchase APR kicks in, so timing your payoff matters.
Key Takeaways
- The card you're transferring to contacts your old issuer and pays the balance directly—you don't move the money yourself.
- Balance transfers usually charge a fee of 3% to 5% of the amount transferred, added to your new balance on day one.
- The promotional 0% interest rate applies only to the transferred balance, not to new purchases you make on the card.
- The transfer takes 5 to 14 business days to complete, so continue paying your old card during that time.
- You need good to excellent credit (usually 670 or higher) to get approved for a card with a strong balance transfer offer.
What credit score you need and how to check yours
Most cards offering 0% balance transfer rates require a credit score of 670 or higher, and the best offers go to people with scores above 740. If your score is below 670, you may still transfer a balance, but the promotional rate will be shorter or the regular APR higher. You can check your score free through your bank's website, through credit card issuers (many show it on your statement or app), or through sites like Credit Karma or AnnualCreditReport.com.
Your score matters because the issuer uses it to decide whether to approve you and what rate to offer. A higher score means a longer 0% period and lower fees. If your score has dropped since you last checked, you may want to wait a few months and rebuild it before transferring—a higher score could save you hundreds in interest charges or fees.
Understanding the balance transfer fee and how it affects your payoff
Nearly every balance transfer comes with a fee, usually 3% to 5% of the amount you transfer. This fee is added to your new card balance immediately, so if you transfer $5,000 with a 4% fee, you owe $5,200 on the new card from day one. The fee is not waived even if you pay off the balance during the 0% period—it's a cost of the transfer itself.
The fee is worth paying only if the interest you'd save on your old card exceeds what you'll pay in fees. For example, if you're paying 18% APR on $5,000 and can transfer it at 4% fee plus 0% for 12 months, you save roughly $900 in interest while paying $200 in fees—a net savings of $700. But if you only transfer $1,000, the $40 fee might not be worth it if you can pay off the old card in a few months anyway.
How to choose which card to transfer to
Look for a card that offers a 0% promotional period of at least 12 months and a balance transfer fee of 3% or less. Compare the length of the promotional period against how long you think you'll need to pay off the debt. If you can pay $400 a month toward a $5,000 balance, you need about 13 months—so a card offering 0% for 12 months won't give you enough time, and you'd pay interest on the remaining balance.
Check the regular APR that kicks in after the promotional period ends. Some cards charge 15% APR after 0% for 12 months; others charge 22%. If you don't pay off the full balance before the period ends, the higher APR will cost you significantly more. Also confirm that the card doesn't charge an annual fee—many balance transfer cards don't, but some do, and that fee eats into your savings.
Read the fine print about what happens if you miss a payment. Some cards end the promotional rate early if you're late, meaning you'd suddenly owe the regular APR on the full remaining balance. Others allow one missed payment without penalty. This matters if your budget is tight.
The step-by-step process once you've chosen a card
First, gather the account number and current balance of the card you want to pay off. You'll need this when you apply. Then submit your application for the new card. You can do this online, by phone, or in person at a bank branch, depending on the issuer.
Once you're approved, log into your new card's account or call the customer service number on the back of your card. Look for a "balance transfer" option in the app or menu, or ask the representative to initiate one. You'll provide the old card's account number, the amount to transfer, and confirm the request.
The new card's issuer will then contact your old card's company and arrange payment. This takes 5 to 14 business days. During this time, continue making at least the minimum payment on your old card—the transfer isn't final until the old issuer receives the funds. Once it posts, your old balance will show as zero and your new card will show the transferred amount plus the balance transfer fee.
What to do with your old card after the transfer
Don't close the old card immediately after the balance transfers. Closing it can hurt your credit score by reducing your available credit and raising your credit utilization ratio. Instead, leave it open with a zero balance. You can set it aside and not use it, or use it occasionally for small purchases you pay off in full each month to keep the account active.
If the old card charges an annual fee and you're not using it, you can call the issuer and ask them to waive the fee or close the account. Many will waive a fee if you ask, especially if you've been a customer for years. If they won't waive it and you don't plan to use the card, closing it is reasonable—the damage to your score from closing one card is usually small if you have other open accounts.
Common mistakes that cost you money
The biggest mistake is making new purchases on the balance transfer card during the promotional period. The 0% rate applies only to the transferred balance, not to new charges. New purchases usually accrue interest at the regular APR immediately, and payments go toward the transferred balance first, leaving new purchases to accumulate interest longer. If you transfer a balance, treat the card as a payoff tool, not a spending card.
Another costly mistake is missing a payment or paying late. Many cards will end the promotional rate if you miss even one payment, meaning you'd suddenly owe the regular APR on the remaining balance. Set up automatic payments for at least the minimum, or set a phone reminder a few days before the due date.
A third mistake is transferring only part of your debt and leaving a high balance on the old card. If you have $10,000 in debt across two cards, transferring $5,000 to a new 0% card while leaving $5,000 on the old card at 18% APR means you're still paying interest on half your debt. Transfer the full balance if possible, or prioritize the card with the highest APR.
Frequently Asked Questions
Can I transfer a balance from one card to the same card I already have?
No. You cannot transfer a balance from a card to itself. You must transfer to a different card from a different issuer. Some people open a new card with the same bank and try to transfer between them—this usually works, but confirm with the issuer first.
What happens if I can't pay off the balance before the 0% period ends?
The regular APR takes over on any remaining balance. If you owe $2,000 when the 0% period ends and the card's APR is 19%, you'll start paying interest on that $2,000. You can avoid this by transferring the remaining balance to another 0% card before the period ends, though you'll pay another balance transfer fee.
Does a balance transfer hurt my credit score?
Yes, temporarily. A hard inquiry and a new account will lower your score by a few points initially. But as you pay down the transferred balance, your credit utilization drops and your score usually recovers within a few months. The long-term benefit of paying off debt at 0% instead of 18% outweighs the short-term dip.
Can I transfer a balance if I'm behind on payments?
It's harder but sometimes possible. Most issuers won't approve you if you're currently 30 or more days late on any account. If you're only a few days late, you may still be approved, but you'll get a worse rate or a shorter promotional period. Bring your accounts current first if you can.
What if the balance transfer doesn't go through?
Contact the new card's customer service and ask why it was declined. Common reasons are that the old card's issuer rejected the request, the account number was wrong, or the transfer amount exceeded your credit limit. Once you fix the issue, you can request the transfer again.