How to Do a Balance Transfer on a Credit Card

Drowning in credit card interest? A balance transfer could be your shortcut to lower payments and faster debt payoff—if you play it right.

Balance transfers let you move existing credit card debt to a new card with a lower interest rate. In some cases, you can even pay 0% interest for over a year. That breathing room can make it easier to knock out your balance faster and cheaper.

But not all offers are worth it. Some come with sneaky fees, confusing terms, or short timelines that leave you worse off than before.

This guide breaks down how balance transfers work, when they make sense, and how to avoid the traps that can cancel out your savings. Let’s make sure your next move helps your finances—not hurts them.

What is a balance transfer?

A balance transfer lets you move debt from one credit card to another, usually to take advantage of a lower interest rate. In most cases, it involves moving high-interest credit card debt to a new card offering a promotional rate—often as low as 0%—for a limited time.

The goal is to save money on interest and pay off your balance faster. Instead of making slow progress while interest piles up, a balance transfer can give you a clear window to chip away at your debt more efficiently.

When should you do a balance transfer?

A balance transfer makes sense when you have high-interest credit card debt and a plan to pay it off during the promotional period. It’s especially helpful if:

You’re paying more than 15% interest: A lower or 0% intro APR can save you hundreds in interest.
You have a solid payoff strategy: The real benefit comes when you clear the balance before the promo rate ends.
You’re juggling multiple cards: Consolidating balances onto one card can simplify payments and reduce the risk of missing due dates.
You have decent credit: Most balance transfer offers require good credit scores to qualify.

It’s not always the right move. If you’re only making minimum payments or likely to rack up new charges, a balance transfer could backfire. Timing and discipline are key.

Pros & Cons of Balance Transfer Credit Cards

Balance transfer cards can be a powerful tool—but only if you use them wisely. Here’s how the benefits and drawbacks stack up:

Pros

Lower interest payments: A 0% intro rate gives you a chance to pay off debt interest-free for a set period.
Faster payoff timeline: More of your monthly payment goes toward the principal, not interest.
Simplified finances: Combining multiple balances into one payment can make budgeting easier.
Potential credit score boost: Lowering your credit utilization can improve your credit score over time.

Cons

Balance transfer fees: Most cards charge 3%–5% of the amount you transfer.
Short-term benefit: Once the promo period ends, the regular interest rate kicks in—often over 20%.
Strict terms: One late payment can cancel your intro rate and trigger penalties.
Credit score dip (short-term): Opening a new account may temporarily lower your score.

Weighing the pros and cons can help you decide if a balance transfer card is a smart move—or a costly distraction.

How to Do a Balance Transfer Step by Step

Doing a balance transfer is easier than most people think. Here’s how to get it done the right way:

Compare balance transfer offers – Look for a card with a 0% intro APR, a long promo period (12–18 months), and low fees. Make sure it accepts balance transfers from your current credit card issuer.
Apply for the new card – You’ll need a decent credit score to qualify. Don’t make other credit applications at the same time, as that could lower your score.
Request the transfer – After approval, submit a balance transfer request online or by phone. You’ll need the account number and balance from your current credit card.
Wait for the transfer to go through – It can take 5 to 10 business days. Keep making payments on your old card until the transfer is complete.
Start making payments on the new card – Pay more than the minimum whenever you can. Missing even one payment could void your promo rate.

A balance transfer can pay off—but only if you’re committed to paying down the balance before interest kicks in. Treat the promotional period like a deadline.

What to Know About 0% APR Balance Transfer Offers

A 0% APR balance transfer offer sounds like free money—but only if you use it correctly. These promotional rates usually last between 6 and 21 months. During that time, you won’t be charged interest on the transferred amount.

That means every payment you make goes toward reducing your debt—not padding the bank’s profits. But the clock is ticking. Once the promotional period ends, the standard interest rate kicks in, and it’s often much higher than average.

Also, not all purchases are interest-free. Most cards apply the 0% rate only to the transferred balance. New purchases may rack up interest right away, unless there’s also a 0% offer on purchases. Check the fine print before you start swiping.

The Real Cost: Balance Transfer Fees and Annual Fees

Even with 0% APR, a balance transfer is rarely free. Most cards charge a balance transfer fee—usually 3% to 5% of the amount you’re moving. That means transferring $5,000 could cost you $150 to $250 upfront.

Some cards also charge an annual fee. It’s not always tied to the balance transfer offer, but it still adds to your cost. While a few cards waive the first year’s fee, many do not.

Before you apply, add up the total cost of the transfer. If the fees outweigh the interest you’re avoiding, the offer may not be worth it.

Can you negotiate balance transfer fees?

Yes, you can sometimes negotiate balance transfer fees—but results may vary. Start by calling your current credit card issuer or the new one you’re considering. Ask if they offer any balance transfer promotions with reduced fees.

If you have a strong payment history and a solid credit score, use that as leverage. Credit card companies want to keep good customers—and sometimes that means making a deal.

You may not get the fee waived entirely, but you could get a lower rate or a longer 0% period. It doesn’t hurt to ask, and the savings could be worth it.

Watch Out for Deferred Interest and Intro Rate Traps

Some credit cards advertise 0% interest but bury the real terms in the fine print. One of the biggest traps is deferred interest. It works differently from a true 0% APR offer.

With deferred interest, you only avoid interest if you pay off the entire balance by the end of the promo period. If even one dollar remains, you get charged retroactive interest on the full amount—starting from the day you opened the card.

Another common trap is losing your intro rate after a late payment. Even being one day late can cancel your 0% rate and trigger penalty interest. Always read the terms carefully and set up autopay if needed to avoid these surprises.

Will a balance transfer hurt your credit score?

A balance transfer may cause a small dip in your credit score at first, but it can help in the long run. Here’s how it breaks down:

New credit inquiry: Applying for a new card results in a hard inquiry, which can slightly lower your score.
New account: Opening a new card can reduce the average age of your accounts, which may also drop your score temporarily.
Lower credit utilization: Transferring a balance can improve your credit utilization ratio, especially if you keep the old account open and unused.

If you use the transfer to pay off debt faster and avoid new charges, your score will likely go up over time.

How to Pay Off Your Balance Before the Promo Ends

To get the full benefit of a 0% balance transfer, you need a plan to pay off the balance before the promotional rate expires. Here’s how to do it:

Divide the balance by the promo period – For example, if you transfer $3,000 to a card with a 15-month 0% offer, you’ll need to pay $200 per month to wipe it out on time.
Automate your payments – Set up automatic payments for that target amount—not just the minimum. This keeps you on track and prevents late fees.
Avoid new purchases – New charges could add to your balance and may not be covered by the 0% offer.
Monitor your progress – Check your statements monthly to make sure your payments are reducing the balance as expected.

Treat the end of the promo period like a deadline. Missing it could mean paying high interest on whatever’s left.

What to Do If You Can’t Find a 0% Balance Transfer Offer

Not everyone qualifies for a 0% APR offer. If your credit score is lower, or you’re between promotions, here are your options:

Look for low-interest transfer offers – Some cards offer rates below 10%, which can still save you money compared to a high-interest card.
Use a personal loan – A debt consolidation loan can offer fixed payments, a lower rate, and a clear payoff timeline.
Ask your current issuer for a lower rate – You may be able to negotiate a better deal without transferring at all.
Focus on snowball or avalanche methods – If a balance transfer isn’t available, prioritize paying down high-interest debt first.

You don’t need a perfect offer to make progress. Even a small rate reduction can free up cash and help you gain momentum.

Final Thoughts

A balance transfer can be one of the easiest ways to save money on credit card interest—but only if you’re clear on the terms and have a plan to pay off the balance before the promo ends. When used strategically, it gives you breathing room to make real progress on your debt without wasting money on interest.

But this isn’t a free pass. If you miss a payment, ignore the fees, or continue spending on other cards, you can end up in worse shape than when you started. Make sure the math checks out, and commit to using the 0% period as a short-term tool to get ahead—not as an excuse to delay dealing with the debt.

Frequently Asked Questions

Can I transfer a balance from someone else’s credit card?

Most credit card issuers only allow balance transfers between accounts held under the same name. That means you usually can’t move someone else’s debt to your card. However, a few issuers may allow it if the other person is an authorized user or if you call and request an exception.

How long does a balance transfer take to process?

Balance transfers typically take between 5 and 10 business days to complete, though it can vary by issuer. During that time, you should keep making payments on your original card to avoid late fees or missed payments. Wait for confirmation that the transfer is complete before you stop.

Can I transfer multiple balances to one card?

Yes, many balance transfer cards let you move multiple balances from different credit cards, as long as the total amount doesn’t exceed your credit limit. This can be a helpful way to consolidate payments and reduce the risk of missing due dates.

Do balance transfers earn credit card rewards?

No, balance transfers don’t qualify for points, cash back, or other credit card rewards. They’re considered a type of account management feature, not a purchase. In fact, some issuers specifically exclude balance transfers from any promotional perks.

Can I cancel a balance transfer after I request it?

Once a balance transfer is submitted and approved, it usually can’t be canceled. If you change your mind, you’ll need to wait until the transfer posts and then make payments as usual. Always double-check the details before you confirm a transfer request.