How to Transfer a Credit Card Balance to Another Card

What happens when you transfer a credit card 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 your old card's balance. You then owe that amount to the new card instead, at whatever terms that card offers.

The new card often comes with a promotional interest rate — frequently 0% for a set period, usually 6 to 21 months depending on the card and the issuer. After the promotional period ends, the regular interest rate kicks in. Most balance transfer cards charge a one-time fee of 3% to 5% of the amount transferred, added to your new balance.

Balance transfers work best when you can pay down the debt during the promotional period before interest resumes. If you cannot, you may end up paying more overall than you would have on your original card.

Key Takeaways

• A balance transfer moves your debt to a new card, usually one offering a lower or temporary 0% interest rate.
• Most balance transfer cards charge a one-time fee of 3% to 5% of the transferred amount, which gets added to what you owe.
• The promotional 0% rate typically lasts 6 to 21 months, after which the card's regular interest rate applies to any remaining balance.
• You need good to excellent credit (usually a score of 670 or higher) to be approved for a balance transfer card with a promotional rate.
• Payments during the promotional period go toward your balance first, so making regular payments helps you reduce debt before interest resumes.

Steps to transfer a balance

Start by choosing a new card that offers a balance transfer promotion. Compare the length of the 0% period, the transfer fee percentage, and any other card benefits. Once you have decided, submit an process to that card's issuer.

After you are approved, contact the new card issuer to request the balance transfer. You will need to provide your old card's account number, the card issuer's name, and the amount you want to transfer. Some issuers let you request the transfer online through your account; others require a phone call. The new card issuer will then contact your old card company to arrange payment.

The transfer usually takes 5 to 14 business days to complete. During this time, keep making minimum payments on your old card to avoid late fees. Once the transfer posts, your old card's balance will drop, and the new card's balance will reflect the transferred amount plus the transfer fee.

After the transfer is complete, you can close your old card if you wish, though closing it may affect your credit score slightly. Leaving it open with a zero balance does not hurt your score and keeps that available credit in your account.

Who qualifies for a balance transfer card

Credit card issuers set their own approval standards, but most balance transfer cards require a credit score of 670 or higher. Some cards aimed at people rebuilding credit may accept scores as low as 580 to 620, though these typically offer shorter promotional periods or higher transfer fees.

Issuers also look at your income, existing debt, and payment history. If you have missed payments recently or carry very high debt relative to your income, you may be denied or offered a card with less favorable terms. The issuer will pull a hard inquiry on your credit report, which temporarily lowers your score by a few points.

You cannot transfer a balance between cards from the same issuer. For example, you cannot move a balance from one Chase card to another Chase card. You must transfer to a card issued by a different company.

Comparing balance transfer fees and promotional periods

Balance transfer fees range from 3% to 5% of the amount transferred. On a $5,000 transfer, a 3% fee costs $150 and a 5% fee costs $250. This fee is added to your new balance when ready, so you start out owing more than you transferred.

The promotional 0% period varies widely. Some cards offer 0% for 6 months, others for 12 months, and premium cards may offer 18 to 21 months. Longer promotional periods give you more time to pay down the balance before interest kicks in, but they are usually only available to people with excellent credit scores (750 or higher).

After the promotional period ends, the regular purchase and balance transfer interest rate applies. This rate also varies by card and issuer, typically ranging from 15% to 25%. Check the card's terms before you transfer to know what rate you will face once the promotion ends.

When a balance transfer makes financial sense

A balance transfer saves you money if the interest you avoid during the promotional period exceeds the transfer fee. For example, if you transfer $5,000 at a 4% fee ($200) to a card with 0% for 12 months, you save money as long as your old card's interest rate was higher than roughly 2% per year on that balance.

Balance transfers work best when you have a concrete plan to pay down the debt during the promotional period. If you transfer $5,000 with 12 months at 0%, you need to pay roughly $417 per month to clear the balance before interest resumes. If you cannot commit to that payment level, the transfer may not help.

A balance transfer also makes sense if you are consolidating multiple high-interest cards onto one card with a lower rate. This simplifies your payments and may reduce the total interest you pay, as long as you do not run up new balances on the cards you just paid off.

What happens after the promotional period ends

Once the 0% promotional period expires, any remaining balance on the card will start accruing interest at the card's regular rate. If you transferred $5,000 and paid down $3,000 during the promotional period, the remaining $2,000 will begin earning interest at the card's standard rate.

Your monthly payments will continue to go toward the balance, but a portion will now cover interest charges. The longer you carry the balance after the promotional period, the more interest you pay. This is why balance transfers work best when you have a clear payoff timeline.

Some people use a strategy called "stacking" — transferring the remaining balance to another new card with a promotional rate before the first one expires. This can work if you have good credit and can find another card with favorable terms, but each transfer incurs a new fee and another hard inquiry on your credit report.

Risks and drawbacks of balance transfers

The transfer fee is an when ready cost that reduces the benefit of the lower interest rate. If you only plan to carry the balance for a few months, the fee may outweigh your savings.

Closing your old card after a transfer can hurt your credit score by reducing your total available credit and shortening your average account age. Keeping the old card open avoids this penalty, but it may tempt you to run up a new balance on it.

If you miss a payment on your new card during the promotional period, the issuer may cancel the 0% rate and explore the regular interest rate when ready. This is called "penalty rate pricing," and it can happen even if you are only a few days late. Read the card's terms to understand the issuer's policy on late payments.

Balance transfers also do not reduce the amount you owe — they only change where you owe it and at what rate. If you do not change the spending habits that created the debt in the first place, you may end up with balances on both your old and new cards.

Frequently Asked Questions

Can I transfer a balance if I have bad credit?

Most cards with 0% promotional rates require a credit score of 670 or higher. If your score is lower, you may still find cards that accept balance transfers, but they typically charge higher fees, offer shorter promotional periods, or have higher regular interest rates. Some credit unions also offer balance transfer options to members with lower scores.

How long does a balance transfer take?

The transfer usually takes 5 to 14 business days from the time you request it. Some issuers complete transfers in as little as 3 days, while others may take up to 3 weeks. During the waiting period, continue making minimum payments on your old card to avoid late fees.

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

Any remaining balance will start accruing interest at the card's regular rate once the promotional period expires. You can continue making payments at the new rate, or you can transfer the remaining balance to another card with a promotional rate if you may have access to. However, each new transfer incurs another fee.

Does a balance transfer hurt my credit score?

The hard inquiry from the new card process temporarily lowers your score by a few points. Opening a new account also lowers your average account age. However, the transfer itself may help your score by lowering your credit utilization ratio on your old card. The overall impact is usually small and temporary.

Can I use a balance transfer card for new purchases?

Yes, you can use the card for new purchases, but the 0% promotional rate typically applies only to transferred balances, not to new charges. New purchases usually accrue interest at the card's regular rate when ready. Some cards offer a separate 0% period for new purchases, but this is separate from the balance transfer promotion.