Yes, you can transfer a balance from one credit card to another

A balance transfer moves the money you owe on one card to a different card, usually one with a lower interest rate. The new card's issuer pays off your old balance, and you then owe that amount to them instead. This works because credit card companies compete for your business and use balance transfer offers to attract customers.

The process itself is straightforward: you apply for a new card that offers balance transfers, get approved, and during the application or shortly after, you tell the issuer which old card to pay off and how much. The new card company handles the payment directly to your old card's issuer. You never touch the money—it moves from one company's system to another.

Key Takeaways

  • A balance transfer moves your debt from one card to another, typically to take advantage of a lower interest rate on the new card.
  • Most balance transfer offers come with an introductory rate (often 0% APR) that lasts a set number of months, after which the regular rate kicks in.
  • Balance transfer fees typically range from 3% to 5% of the amount you transfer and are added to your new balance.
  • You must be approved for the new card before the transfer happens, and the process usually takes 5 to 14 days to complete.
  • Transferring a balance does not close your old card, but carrying a zero balance on it may help your credit score more than closing it.

What happens during a balance transfer

When you apply for a new card offering balance transfers, the issuer checks your credit and decides whether to approve you. If approved, you have a window of time—usually 60 days from account opening—to request the transfer. You provide the old card's account number, the issuer's name, and the amount you want to move.

The new card company then sends a payment to your old card's issuer on your behalf. This payment shows up as a regular payment from the new card company's perspective, so your old card issuer receives it just like any other payment. The balance on your old card drops by that amount, and the same amount appears on your new card as a balance transfer balance.

The entire process typically takes 5 to 14 days, though some issuers are faster. During this time, you should keep making minimum payments on your old card in case the transfer is delayed. Once the transfer posts, you owe the money to the new card company instead.

The introductory rate and when it ends

Most balance transfer offers come with an introductory annual percentage rate (APR), often 0%, that lasts for a specific period. This period varies by card and offer—it might be 6 months, 12 months, 18 months, or longer. During this time, interest does not accrue on the transferred balance, so every payment you make goes directly toward reducing what you owe.

When the introductory period ends, the regular APR takes over. This is the rate you would pay on any new purchases or remaining balance after the intro period closes. If you still carry a balance at that point, you will start paying interest on it at the regular rate. This is why balance transfers work best if you have a plan to pay down the balance during the interest-free window.

The introductory rate applies only to the transferred balance, not to new purchases. If you use the card to buy something after the transfer, that purchase typically accrues interest at the regular rate immediately, even during the intro period.

Balance transfer fees and other costs

Most cards charge a balance transfer fee, which is a percentage of the amount you transfer. This fee typically ranges from 3% to 5%, though some cards charge as little as 0% or as much as 8%. The fee is added to your new balance on the new card, so if you transfer $5,000 with a 4% fee, you now owe $5,200 on the new card.

The fee is worth paying if the interest rate savings exceed the cost. For example, if your old card charges 20% APR and you transfer $5,000 to a card with a 0% intro rate and a 4% fee, you pay $200 upfront but save hundreds in interest over the intro period. However, if you only transfer $500 and plan to pay it off in two months, the $20 fee might not be worth it.

Beyond the transfer fee, the new card may have an annual fee, though many balance transfer cards do not. Check the card's terms before applying. You will also owe the regular APR on any new purchases you make, and that rate can be higher than your old card's rate.

Who can do a balance transfer

You need an approved credit card to transfer a balance. This means you must apply for a new card and be approved before the transfer can happen. Credit card issuers look at your credit score, income, and payment history to decide whether to approve you. If your credit score is low or you have recent missed payments, approval may be harder to get.

You can transfer a balance from any credit card to any other credit card, with one exception: most issuers will not let you transfer a balance from one of their own cards to another of their cards. For example, if you have a Chase card, Chase will not transfer that balance to a different Chase card. You must move it to a card from a different company.

You cannot transfer a balance from a debit card, a store card, or a loan. Balance transfers work only between credit cards. If you owe money on a personal loan or a medical bill, you cannot move that debt to a credit card using a balance transfer.

How a balance transfer affects your credit score

Applying for a new card triggers a hard inquiry on your credit report, which can lower your score by a few points temporarily. This dip usually recovers within a few months. Opening a new account also lowers your average account age, which can affect your score, but this effect is typically small and temporary.

Once the transfer is complete, your credit utilization—the percentage of your available credit you are using—changes. If you transfer $5,000 to a new card with a $10,000 limit, your utilization on that card is 50%. This is higher than if you had left the balance on your old card, so it may lower your score slightly. However, your utilization on your old card drops to zero (or lower if you had other balances), which can help your score.

Keeping your old card open after the transfer is usually better for your score than closing it. An open card with a zero balance helps your overall utilization ratio and keeps your average account age higher. Closing the card removes available credit from your profile, which can raise your utilization percentage and hurt your score.

When a balance transfer makes sense

A balance transfer works best when you have a clear plan to pay down the balance during the introductory period. If you transfer $3,000 to a card with a 12-month 0% intro rate, you need to pay at least $250 per month to eliminate the balance before interest kicks in. If you cannot commit to that payment, the transfer may not help you.

A balance transfer also makes sense if your current card's interest rate is significantly higher than the new card's regular rate. If you are paying 22% APR and can move to a card with a 15% regular APR, the savings may justify the transfer fee even if you do not pay off the balance during the intro period.

A balance transfer does not make sense if you plan to keep carrying a balance indefinitely. The fee and the eventual regular APR may cost you more than staying put. It also does not make sense if you cannot get approved for a card with better terms than your current card, or if you tend to run up new balances on cards you transfer from—you would end up with debt on both cards.

What happens to your old card after the transfer

Your old card remains open and active after a balance transfer. The balance on it drops by the amount transferred, but the card itself does not close. You can still use it to make purchases, and you still owe any remaining balance on it.

If the transfer paid off the entire balance, your old card now has a zero balance. You can leave it open and unused, which helps your credit score by keeping available credit in your profile. You can also use it occasionally for small purchases and pay them off in full each month.

Closing the old card after a successful transfer is usually not recommended. Closing it removes available credit from your profile, which can raise your credit utilization ratio and lower your score. It also shortens your average account age if the old card is older than your other cards. The only reason to close it is if the card has an annual fee you do not want to pay.

Frequently Asked Questions

How long does a balance transfer take?

Most balance transfers complete within 5 to 14 days after you request them. Some issuers are faster and complete transfers in 3 to 5 days. During this time, keep making minimum payments on your old card in case the transfer is delayed. Once it posts, you owe the money to the new card company.

Can I transfer a balance if I have bad credit?

It depends on how bad your credit is. Most balance transfer cards require a credit score of at least 670, though some accept lower scores. If your score is very low or you have recent missed payments, you may not be approved. You can still apply, but approval is not may provide.

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

You will owe interest at the regular APR on any remaining balance. The regular rate is usually lower than your old card's rate, so you still save money, but you will pay interest. If possible, try to pay down as much as you can during the intro period to minimize what you owe when the regular rate kicks in.

Can I do multiple balance transfers to the same card?

Most cards allow you to request multiple transfers within the 60-day window after opening the account, as long as the total does not exceed your credit limit. However, each transfer may have its own fee, and all transferred balances share the same introductory rate. Check your card's terms to confirm.

Does transferring a balance close my old card?

No. A balance transfer does not close your old card. The balance on it drops by the amount transferred, but the card stays open and active. You can leave it open with a zero balance, which helps your credit score, or close it later if you choose.