How to Transfer a Credit Card Balance to Another Card

What happens when you transfer a balance

A balance transfer moves debt from one credit card to another, usually one with a lower interest rate. You request the transfer from the new card's issuer, who pays off part or all of the old card's balance. You then owe that amount to the new card instead, at whatever rate and terms that card offers.

The new card often comes with a promotional rate — typically 0% interest for a set period, often 6 to 21 months depending on the card and the issuer. After that period ends, the remaining balance reverts to the card's regular interest rate. Most cards charge a balance transfer fee when you move the money, usually 3% to 5% of the amount transferred.

Balance transfers work best when you have high-interest debt on one card and can move it to a card with a lower rate or a 0% promotional period. They do not erase the debt — they move it and change the terms. If you stop making payments on the new card, the debt still appears on your credit report and can damage your credit score.

Key Takeaways

• A balance transfer moves your debt from one card to another, usually to take advantage of a lower interest rate or a 0% promotional period.
• Most balance transfers charge a fee of 3% to 5% of the amount you move, added to your new balance.
• The promotional 0% rate lasts only for a set time — often 6 to 21 months — then the regular interest rate kicks in on any remaining balance.
• You must make payments on the new card to avoid late fees and credit score damage, even though you are not paying interest during the promotional period.
• Balance transfers typically require you to have a credit score in the good to excellent range, and the new card issuer will check your credit before approving the transfer.

How to request a balance transfer

Start by opening a new credit card that offers a balance transfer option. Not all cards do — you will need to check the card's terms or call the issuer to confirm. Once your new card account is open and active, contact the card issuer directly by phone, online portal, or mail to request the transfer.

You will need to provide the account number of the card you want to pay off, the amount you want to transfer, and the name and address of that card's issuer. The new card's issuer will then contact your old card's issuer to arrange payment. This process usually takes 5 to 14 business days, though some issuers complete it faster.

During the transfer period, keep making minimum payments on your old card. The old card's issuer may not know the transfer is coming, and missing a payment can hurt your credit score even if you are in the middle of moving the balance. Once the transfer completes, your old card's balance will drop to zero (or to whatever portion you did not transfer), and your new card's balance will reflect the transferred amount plus the balance transfer fee.

Balance transfer fees and how they work

Nearly all balance transfers come with a fee charged by the new card's issuer. This fee is a percentage of the amount you transfer — typically 3%, 4%, or 5%. A $5,000 transfer with a 4% fee costs $200, which is added to your new card balance. You pay interest on this fee after the promotional period ends, just as you do on the transferred balance itself.

Some cards marketed to people with excellent credit offer 0% balance transfer fees during a limited time, but these are uncommon and usually come with other restrictions. Before requesting a transfer, check the card's terms to see what fee applies and calculate whether the savings from a lower interest rate outweigh the cost of the fee.

The fee is charged once, when the transfer completes. You do not pay it monthly or repeatedly — it is a one-time cost added to your balance on the new card.

Promotional rates and what happens after

The 0% promotional rate is the main reason most people do balance transfers. This rate applies only to the transferred balance, not to new purchases you make on the card. The promotional period lasts a set number of months — common lengths are 6, 12, 18, or 21 months — and varies by card and issuer.

During the promotional period, you pay no interest on the transferred balance, but you still owe the debt. If you make only minimum payments, you will pay down the balance slowly. If you make no payments at all, the balance stays the same and you will owe the full amount when the promotional period ends.

When the promotional period expires, any remaining balance on the card reverts to the card's regular interest rate, called the purchase APR or standard APR. This rate can range from 15% to 25% or higher, depending on your credit score and the card issuer. If you still owe $3,000 when the promotional period ends, you will start paying interest on that $3,000 at the regular rate. To avoid this, you should plan to pay off the transferred balance before the promotional period ends.

Credit score impact and approval requirements

Requesting a balance transfer triggers a hard inquiry on your credit report when the new card issuer checks your credit. This inquiry can lower your credit score by a few points temporarily. Opening a new card account also lowers your average account age and increases your total available credit, both of which affect your score.

Most balance transfer cards require a credit score of 670 or higher, though some issuers require 700 or higher. If your score is lower, you may not be approved, or you may be approved with a higher interest rate or a shorter promotional period. The issuer will tell you the terms they are offering before you accept.

Balance transfers can actually help your credit score over time if they lower your credit utilization — the percentage of your available credit that you are using. Moving a $5,000 balance from one card to a new card with a $10,000 limit lowers your utilization on both cards, which can improve your score after a few months. However, this benefit only applies if you do not run up new balances on the old card.

When a balance transfer makes sense

A balance transfer is most useful when you are paying high interest on an existing balance and can move it to a card with a lower rate or a 0% promotional period. If you owe $4,000 at 22% interest on one card and can transfer it to a card with 0% for 18 months, you save hundreds in interest if you pay down the balance during that time.

Balance transfers also work if you want to consolidate multiple cards into one. You can request transfers from several old cards to one new card, simplifying your payments and potentially lowering your overall interest rate. However, you will pay a balance transfer fee for each transfer.

A balance transfer does not make sense if you plan to keep carrying a balance after the promotional period ends, because you will eventually pay interest at the regular rate. It also does not help if your credit score is too low to be approved for a card with a good promotional offer, or if the balance transfer fee is so high that it wipes out the interest savings.

Mistakes to avoid during a balance transfer

Do not stop paying your old card while the transfer is processing. Even though the new issuer is arranging payment, your old card issuer may not know about it. A missed payment can trigger a late fee and damage your credit score, even if the transfer completes a few days later.

Do not make new purchases on the new card during the promotional period unless you understand how they are treated. Most cards explore the 0% rate only to transferred balances. New purchases accrue interest at the regular rate when ready, and payments you make go toward the transferred balance first, leaving new purchases to accumulate interest.

Do not assume you have paid off the debt just because you are not paying interest. The balance still exists, and if you do not pay it down during the promotional period, you will owe interest on whatever remains when the period ends. Set a payment plan to eliminate the balance before the promotional rate expires.

Do not transfer more than you can realistically pay down. If you transfer $8,000 but can only afford to pay $300 per month, you will still owe $2,400 when a 12-month promotional period ends, and that $2,400 will then accrue interest at the regular rate.

Frequently Asked Questions

Can I transfer a balance from a debit card or savings account?

No. Balance transfers only work between credit cards. You cannot transfer from a debit card, savings account, or loan. If you want to move money from a savings account to pay off a credit card, you would transfer the money to your bank account and then use it to make a payment on the card — but that is not a balance transfer and does not come with a promotional rate.

What if I transfer a balance but then want to cancel the new card?

You can cancel the card, but you still owe the balance. The debt does not disappear — it remains on your credit report as an outstanding balance. Canceling the card may also hurt your credit score by reducing your available credit. It is better to keep the card open and pay down the balance, even after the promotional period ends.

How much of my balance can I transfer?

Most issuers let you transfer up to your new card's credit limit, minus any fees and the amount reserved for new purchases. Some cards cap balance transfers at a percentage of your credit limit, such as 90%. The issuer will tell you the maximum transfer amount when you request it.

Does a balance transfer hurt my credit score?

A balance transfer causes a small temporary drop in your credit score due to the hard inquiry and the new account. However, it can improve your score over time if it lowers your credit utilization across your cards. The long-term impact depends on whether you pay down the balance and avoid running up new debt.

What happens if I miss a payment on the transferred balance?

Missing a payment triggers a late fee, usually $25 to $40, and can cause you to lose the promotional 0% rate. Your interest rate may jump to the card's default or penalty rate, which is often 25% or higher. The missed payment also appears on your credit report and damages your credit score.