The basic steps to transfer 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 the old card details and the amount you want to move, and they pay off that balance on your behalf. The debt then appears on your new card instead.

The process typically takes 5 to 14 business days. During that time, you keep making payments on the old card until the transfer posts — paying the new card too early does not speed it up. Once the transfer completes, the old card balance drops to zero and the new card shows the transferred amount.

Most card issuers let you start a transfer online through your account, by phone, or sometimes in a branch. You will need the account number of the card you are paying off, the amount to transfer, and the cardholder name on that account (which must match the name on your new card).

Key Takeaways

  • Balance transfers take 5 to 14 business days to post, so continue paying your old card until the transfer shows as complete.
  • The new card issuer charges a transfer fee, usually 3 to 5 percent of the amount moved, added to your new balance.
  • Introductory rates on balance transfers typically last 6 to 21 months depending on the card, after which a regular purchase or cash advance rate applies.
  • You must have a new card already open before you can transfer; you cannot transfer to a card you have not yet received.
  • The transfer only moves the balance — new purchases on the old card stay there, so close or freeze the old card to avoid running up more debt.

Understanding transfer fees and how they work

Every balance transfer costs a fee. The issuer of your new card charges it, and it is added to the balance you transfer. If you move $5,000 at a 4 percent fee, you owe $5,200 on the new card.

Fees range from 3 to 5 percent depending on the card and issuer. Some cards marketed to people rebuilding credit charge 5 percent; cards aimed at people with good credit often charge 3 percent. A few cards offer zero-fee transfers for a limited time, though these are rare and usually require very good credit.

The fee is worth paying only if the interest rate on the new card is significantly lower than what you are paying now. If you are paying 22 percent on your old card and can move to 0 percent for 12 months on a new card, the 4 percent fee costs you $200 on a $5,000 transfer — but you save roughly $1,100 in interest over the year, making the trade worthwhile.

Introductory rates and what happens after

Most balance transfer offers include an introductory rate of 0 percent for a set period. This period varies widely: some cards offer 0 percent for 6 months, others for 18 months or longer. The length depends on the card and the issuer's current offers.

During the intro period, you pay no interest on the transferred balance, only the principal. After the intro period ends, the regular purchase rate or a balance transfer rate kicks in. This rate is usually between 15 and 25 percent, depending on your credit score and the card's terms.

The intro period applies only to the transferred balance, not to new purchases. If you use the new card to buy something during the intro period, that purchase accrues interest at the regular rate immediately. Many people make this mistake and end up paying interest on new charges while the transferred balance sits interest-free.

Choosing which card to transfer to

The best card for a balance transfer has the longest interest-free period and the lowest transfer fee. Compare offers from at least three issuers before deciding. Most major banks and online card issuers publish their current balance transfer terms on their websites.

Check whether the card requires good or excellent credit. If your credit score is below 670, many balance transfer cards will deny you. Cards designed for fair credit exist, but they usually have shorter intro periods (6 to 12 months instead of 18 months) and higher fees (5 percent instead of 3 percent).

Also consider the regular purchase rate that applies after the intro period ends. If you cannot pay off the transferred balance before the intro period expires, you will owe interest at this rate. A card with a 0 percent intro period for 12 months but a 24 percent regular rate is not better than one with 18 months at 19 percent if you cannot pay it off in 12 months.

Timing the transfer to avoid mistakes

Start the transfer as soon as your new card arrives and is activated. The longer you wait, the more interest you accrue on the old card. However, do not apply for the new card and the transfer on the same day — wait until the new card is in your hand and you have activated it.

If you are currently behind on payments on the old card, contact that issuer before transferring. Some will not accept a transfer if your account is in default. If you are current but close to missing a payment, prioritize the transfer to stop the interest clock.

Plan to pay down the transferred balance before the intro period ends. If the intro period is 12 months and you transferred $5,000, aim to pay at least $417 per month so you owe nothing when the rate changes. Use a calculator or spreadsheet to work backward from your intro end date and set a monthly target.

What to do with your old card after the transfer

Once the transfer posts, you have two options: close the old card or keep it open with a zero balance. Closing it immediately can hurt your credit score slightly because it reduces your total available credit and shortens your average account age. Keeping it open preserves both, but only if you do not use it.

If you keep the old card open, freeze it or store it somewhere you will not reach for it. New purchases on the old card accrue interest at the old rate while your transferred balance sits interest-free on the new card — a costly mistake. Some people cut up the card or ask the issuer to restrict new charges.

If the old card has an annual fee, close it once the transfer completes. There is no benefit to paying a fee on a card you are not using. If it has no annual fee and you have good payment history with that issuer, keeping it open costs nothing and helps your credit profile.

Avoiding common pitfalls during the transfer

The most common mistake is using the new card for purchases before the transferred balance is paid off. The intro rate applies only to the transferred balance. New purchases are charged interest immediately at the regular rate, which can be 20 percent or higher. Keep the new card for the transfer only until the balance is gone.

Another mistake is missing a payment on the new card. If you miss even one payment, the issuer may cancel the intro rate and charge you the regular rate on the entire balance, including the transferred amount. Set up automatic payments for at least the minimum, and ideally for a fixed amount toward the principal.

Do not assume the transfer is complete just because you submitted the request. Check your new card account online or by phone after 7 to 10 days to confirm the balance posted. If it has not, contact the issuer to ask for a status. Delays happen, and you need to know if yours is stuck.

Frequently Asked Questions

Can I transfer a balance to a card from the same bank?

Yes, you can transfer a balance between cards from the same issuer. However, some issuers restrict transfers between their own cards or charge a higher fee for internal transfers. Check the terms before you apply for the new card.

What if my new card is denied?

If you are denied, your credit score may be too low, or you may have too much existing debt. Wait 3 to 6 months, work on paying down other balances, and try again. In the meantime, focus on paying down the old card as much as you can to reduce the amount you need to transfer later.

Does a balance transfer hurt my credit score?

A balance transfer causes a small, temporary dip because the new card application triggers a hard inquiry and lowers your average account age. Your score usually recovers within 3 to 6 months if you make on-time payments on both cards and do not run up new debt.

Can I transfer a balance if I am behind on payments?

Most issuers will not accept a transfer if your account is in default. Contact your current issuer to ask whether they will allow it, or focus on bringing the account current before applying for a new card.

What happens if I cannot pay off the balance before the intro period ends?

The regular interest rate applies to any remaining balance. If you owe $3,000 when the intro period ends and the regular rate is 20 percent, you will owe roughly $50 per month in interest alone. Plan a second transfer to another 0 percent card if possible, or focus on paying down the balance as quickly as you can.