The basic steps for moving a balance
A balance transfer moves debt from one credit card to another, usually one with a lower interest rate. You contact the new card issuer, give them your old card details, and they pay off that balance for you. The debt then appears on your new card instead.
The process itself takes about one to three business days for the payment to reach your old card issuer. During that time, you'll owe money on both cards—the old one until the payment clears, and the new one once the balance posts. After the transfer completes, you stop using the old card and pay down the new one.
Most balance transfers come with a promotional interest rate—often 0% for a set period, typically 6 to 21 months depending on the card and the issuer. After that period ends, the regular interest rate kicks in. You'll also pay a balance transfer fee, usually 3% to 5% of the amount you move, charged upfront and added to your new balance.
Key Takeaways
- Contact the new card issuer directly and ask them to initiate the balance transfer using your old card account number.
- The transfer fee (typically 3% to 5%) is added to your new balance immediately, so factor that into whether the deal saves you money.
- The promotional interest rate period varies by card—read the offer carefully to see when the regular rate begins.
- You must pay down the transferred balance during the promotional period to benefit; interest charges resume at the regular rate once it ends.
- Stop using the old card after the transfer clears to avoid carrying balances on both cards at once.
What information you need before you start
Gather your old card details before calling the new issuer. You'll need the account number, the card issuer's name, and the exact balance you want to transfer. Have this information in front of you when you call or log into the new card's website.
You should also know the credit limit on your new card. The new issuer won't transfer more than your available credit allows. If your old balance is $5,000 and your new card has a $4,000 limit, you can only move $4,000—the remaining $1,000 stays on the old card.
Check whether the new card has already been approved and activated. Some issuers won't process a balance transfer until the card is in your hand and activated. If you're applying for a new card specifically to do a balance transfer, ask the issuer when you can initiate the transfer—usually after approval but sometimes only after activation.
How the transfer fee works and what it costs
The balance transfer fee is a percentage of the amount you transfer, charged once and added to your new card balance. If you transfer $3,000 at a 4% fee, you'll pay $120 in fees, making your new balance $3,120.
This fee is worth paying only if the interest you save during the promotional period exceeds what you pay upfront. If you transfer $3,000 at 4% fee ($120) to a card with 0% for 12 months, and your old card charged 20% interest, you'd save roughly $600 in interest over that year—a net gain of $480. But if you only transfer $500, the $20 fee might not be worth it depending on how long the promotional period lasts.
Some cards offer 0% balance transfer fees for a limited time—usually the first 60 days after opening the account. If you're considering a balance transfer, check whether the card you're interested in has this offer. It can save you hundreds of dollars on larger transfers.
The promotional period and what happens after
The promotional interest rate period is the window during which you pay 0% (or a reduced rate) on the transferred balance. This period varies widely—some cards offer 6 months, others offer 21 months. The longer the period, the more time you have to pay down the balance without interest charges.
The issuer will tell you the exact end date of the promotional period before you complete the transfer. Mark this date on your calendar. When it passes, the regular purchase or balance transfer APR applies to any remaining balance. If you have $2,000 left when the promotional period ends and the regular rate is 18%, you'll start paying interest on that $2,000 immediately.
This is why the math matters: a balance transfer only saves you money if you pay down enough of the balance during the promotional period that the remaining amount is small, or if you pay it off entirely before the rate changes. If you transfer $5,000 and only pay $500 during a 12-month 0% period, you'll owe interest on $4,500 at the regular rate—and you may have been better off keeping the old card.
When the old card issuer receives the payment
The new card issuer sends a check or electronic payment to your old card issuer on your behalf. This payment typically arrives within one to three business days, though some issuers are slower. Until it clears, your old card still shows an active balance and you're still responsible for it.
During this window, continue making at least the minimum payment on your old card if it's due. Once the payment clears, your old balance will drop to zero (or to whatever portion you didn't transfer). At that point, you can stop using the old card.
Some people close the old card immediately after the transfer clears. Others leave it open with a zero balance. Closing it can slightly lower your credit score because it reduces your total available credit. Leaving it open costs nothing and preserves that credit availability, though the temptation to use it again is real—and using it defeats the purpose of the transfer.
How to actually initiate the transfer
Call the customer service number on the back of your new card, or log into your online account and look for a "balance transfer" or "transfers" option. Most issuers have a dedicated section for this in their website or app.
If you call, tell the representative you want to initiate a balance transfer. They'll ask for your old card number, the issuer name, and the amount you want to transfer. They may also ask why you're transferring (this is routine and doesn't affect approval). The representative will confirm the promotional rate, the fee, and the end date of the promotional period before processing.
If you use the website or app, you'll enter the same information into a form. The system will show you the fee amount and the promotional period before you confirm. Once you submit, the transfer is initiated and you'll receive a confirmation number.
Some issuers allow you to schedule the transfer for a future date, which can be useful if you want to time it with a paycheck or bonus. Others process it immediately. Ask or check the confirmation to know when the payment will be sent.
What can go wrong and how to fix it
The most common problem is the new card issuer rejecting the transfer because the account number you provided is wrong or the old card issuer doesn't recognize it. If this happens, you'll receive a notice. Call the new issuer's customer service and provide the correct account number, or ask them to contact the old issuer directly to verify it.
Another issue is the transfer taking longer than expected. If more than five business days have passed and the payment hasn't cleared, call the new issuer and ask for the status. They can tell you whether the payment was sent and when it's expected to arrive. If it was never sent, they can resend it.
A third problem is forgetting to stop using the old card. If you transfer a balance and then charge new purchases to the old card, you'll end up with debt on both cards. The new card has the transferred balance at 0%, but the old card now has new charges at the regular interest rate. This defeats the purpose of the transfer. Once the transfer clears, physically remove the old card from your wallet or delete it from your digital wallet.
Frequently Asked Questions
Can I transfer a balance if I'm still paying off the old card?
Yes. You don't have to wait until the old card is paid off. You can transfer the balance at any point, even if you're in the middle of paying it down. The transfer moves whatever balance exists at that moment to the new card.
What if I can't pay off the transferred balance before the promotional period ends?
The remaining balance will be charged the regular interest rate once the promotional period ends. If you know you won't be able to pay it off in time, a balance transfer may not save you money. Do the math first: compare the fee plus the interest you'll owe after the promotional period to the interest you're paying now.
Does a balance transfer hurt my credit score?
A balance transfer can temporarily lower your score because the new card inquiry and new account both affect your credit report. However, moving debt from one card to another doesn't change your total debt, so the long-term impact is usually small. Paying down the balance during the promotional period will help your score recover.
Can I transfer a balance from a debit card or savings account?
No. Balance transfers only work between credit cards. You cannot transfer a balance from a debit card, checking account, or savings account. If you have debt on a debit card (which is unusual), you would need to pay it off with cash or another method.
What if the new card issuer denies the balance transfer?
The issuer may deny a transfer if your credit limit is too low, if there's a fraud flag on your account, or if the old card issuer won't accept the payment for some reason. Call the new issuer's customer service to ask why it was denied. They can sometimes override the decision or suggest an alternative.