The basic steps to move your 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 itself takes one to two weeks from the time you request it. The new card issuer handles the payment to your old card company—you do not send money yourself. Once the transfer completes, you owe the new card issuer instead of the old one.
Most balance transfers come with an introductory rate, often 0% APR for a set period (typically 6 to 21 months, depending on the card and the issuer). After that period ends, a regular interest rate kicks in. The catch is that balance transfers usually charge a fee upfront—typically 3% to 5% of the amount transferred, added to your new balance.
Key Takeaways
- Balance transfers move your debt to a new card with a lower rate, but you pay a one-time fee of 3% to 5% of the amount transferred.
- The introductory 0% APR period lasts anywhere from 6 to 21 months depending on the card issuer, so check the exact timeline before you transfer.
- You need the account number and balance from your old card, plus the amount you want to transfer, to start the process with the new issuer.
- Payments on your new card go toward the transferred balance first if you have multiple balances, so plan your payoff timeline before the intro rate ends.
Check what cards offer balance transfer terms that work for you
Not all credit cards offer balance transfers, and the terms vary widely. You need to know three things: the length of the 0% intro period, the transfer fee, and what the regular APR will be after the intro period ends.
Cards marketed for balance transfers typically offer longer intro periods—often 12 to 21 months—but may charge higher transfer fees or have higher regular APRs. Cards with shorter intro periods (6 to 12 months) sometimes have lower fees. Compare a few options before you apply. The card issuer's website will list the intro APR period and the transfer fee in the terms section.
You can also call the issuer's customer service line before you apply and ask them to confirm the exact intro period and fee for your situation. They cannot may provide approval, but they can tell you what the offer is.
Calculate whether the transfer saves you money
A balance transfer only makes sense if the fee and the intro rate together cost you less than you would pay in interest on your current card. Do the math before you move the balance.
Example: You owe $5,000 at 22% APR on your current card. A new card offers a 0% intro APR for 12 months with a 3% transfer fee. The fee is $150 (3% of $5,000). If you pay nothing for 12 months, you owe $5,150 total. On your current card, 12 months of interest at 22% APR costs roughly $1,100. So the transfer saves you about $950, even after the fee.
But if you cannot pay off the $5,150 within 12 months, the regular APR on the new card matters. If it is 20% APR and you still owe $2,000 when the intro period ends, you will pay interest on that $2,000 going forward. Run the numbers for your own situation: what is your current interest cost, what is the transfer fee, and can you realistically pay off the balance before the intro rate expires?
Gather the information the new card issuer will need
When you contact the new card issuer to request the transfer, have these details ready: the account number of the card you are transferring from, the balance you want to move, and the name and address associated with that old account.
You can start a balance transfer online through the new card issuer's website, by phone, or sometimes by mail. Online is usually fastest. The issuer will ask you to confirm the old card details and the transfer amount, then process the request. You do not need to contact your old card company—the new issuer handles that.
If you want to transfer only part of your balance, you can specify that amount. Some people transfer the highest-interest balances first and leave smaller balances on cards with lower rates.
Understand what happens to your old card after the transfer
Your old card account stays open after the transfer completes, even though the balance is now zero. You can keep it open or close it, depending on your situation.
Closing the card can hurt your credit score slightly because it reduces your total available credit and may raise your credit utilization ratio on other cards. Keeping it open preserves that available credit, but you need to make sure you do not rack up new debt on it while you are paying off the transferred balance on the new card.
If you keep the old card open, set a reminder to check it occasionally. Some people forget about old cards and miss payments or overlook fraud. If you close it, contact the issuer by phone or through their website and confirm the closure in writing.
Make a plan to pay off the balance before the intro rate ends
The intro period is your window to pay down the balance interest-free. Once it ends, interest accrues on whatever you still owe. The longer your intro period, the more time you have, but do not assume you can wait until the last month to start paying.
Divide your balance by the number of months in your intro period to find your target monthly payment. If you transferred $5,000 and have 12 months, aim to pay about $417 per month. Set up automatic payments if your card issuer offers them—this removes the risk of missing a payment and keeps you on track.
If you cannot pay off the full balance by the time the intro period ends, you will owe interest on whatever remains. Some people do a second balance transfer to another card with a new intro period, but each transfer costs a fee and can affect your credit score. It is better to have a realistic payoff plan from the start.
Watch for fees and penalties that can derail your savings
Beyond the transfer fee, watch for other charges. If you miss a payment, the card issuer may charge a late fee (typically $25 to $40 for the first missed payment) and may end your intro rate early, meaning interest kicks in immediately on the full balance.
Some cards also charge an annual fee, though many balance-transfer cards waive the first year. Check the card's terms for annual fees before you apply.
Cash advances on the new card do not may have access to for the intro rate—they carry a higher APR and a separate cash advance fee. Avoid using the new card for cash advances while you are paying off the transferred balance.
Frequently Asked Questions
How long does a balance transfer take?
Most balance transfers complete within 1 to 2 weeks from the date you request them. Some issuers process them faster, within a few days. During this time, you still owe your old card company, so keep making minimum payments on the old card until the transfer shows as complete on your new card statement.
Can I transfer a balance if I have bad credit?
Balance transfer cards typically require fair to good credit (usually a score of 670 or higher, though this varies by issuer). If your credit is lower, you may not be approved for a card with a good intro rate. Some issuers offer balance transfer cards for people rebuilding credit, but the intro periods and fees are usually less favorable.
What happens if I use the new card for new purchases?
New purchases and transferred balances are usually treated separately. Payments go toward the transferred balance first (the one with the 0% intro rate), and new purchases accrue interest at the card's regular APR. To avoid confusion, use the new card only for the balance transfer and keep other spending on a different card.
Can I transfer a balance from one card to the same card?
No. You cannot transfer a balance from a card to itself. You must transfer to a different card from a different issuer (or sometimes a different product from the same issuer, but this is rare). If you want to lower your interest rate on your current card, contact the issuer and ask about a rate reduction instead.
What if I pay off the balance before the intro period ends?
Paying off early is the best outcome. You will not owe any interest on the transferred balance, and you will have saved money compared to keeping the debt on your old card. The intro period ends when it ends—paying early does not extend it or give you a refund, but you simply stop accruing interest once the balance is zero.