Most balance transfers earn zero points, and some cards actively block them
No — the vast majority of credit cards do not award points on balance transfers. When you move a balance from one card to another, the transaction itself generates no rewards. Some cards explicitly exclude balance transfers from their rewards program, meaning you get nothing. Others allow points but only on the purchase portion of your bill, not the transferred balance.
The reason is straightforward: card issuers make money on interest charges and merchant fees, not on the act of moving debt between accounts. A balance transfer is a financial maneuver that actually costs them revenue — you stop paying interest on the old card and (usually) pay a lower rate or zero percent on the new one. Rewarding that behavior would work against their business model.
If you are considering a balance transfer, the points question should not drive your decision. The real savings come from the introductory rate — typically zero percent APR for 6 to 21 months — and from avoiding the interest charges that would pile up on your original card.
Key Takeaways
- Balance transfers themselves earn no points on any major credit card, because the transaction is a balance move, not a purchase.
- Some cards explicitly state that balance transfers are excluded from their rewards program, so check your card's terms before transferring.
- The value of a balance transfer comes from the introductory interest rate, not from earning points on the transferred amount.
- If you want to earn points during a balance transfer period, focus on new purchases you make on that card, which usually do earn rewards.
- Balance transfer fees (typically 3 to 5 percent of the amount transferred) are a real cost that should factor into whether the transfer makes sense for you.
How card issuers define a balance transfer versus a purchase
A balance transfer is a specific transaction type in the card issuer's system. When you request a balance transfer, the card company sends money directly to your old lender to pay off that debt. From the issuer's perspective, this is not a purchase — it is a balance movement, similar to a cash advance or a fund transfer.
Purchases, by contrast, are charges you make at merchants or online retailers. These are the transactions that typically earn points. When you use your new balance transfer card to buy groceries or pay a bill, those charges are coded as purchases and usually may have access to for rewards.
The card's rewards terms spell this out. Look for language like "earn points on all purchases" or "rewards exclude balance transfers, cash advances, and fees." If the terms do not mention balance transfers specifically, you can assume they are not included — the default is no points.
Why some cards block balance transfers from earning rewards
Cards that explicitly exclude balance transfers do so to discourage the behavior. A cardholder who transfers a balance, pays zero percent interest for a year, and earns points in the process is a net loss for the issuer. By blocking points on transfers, the card company removes one incentive to move debt around.
Premium cards — those with high annual fees — are more likely to allow points on balance transfers because their business model relies on annual fees and merchant partnerships, not interest income. A card charging $500 per year can afford to be generous with rewards because the fee itself covers the cost.
Budget cards and cards marketed to people rebuilding credit often have stricter rules. These cards depend on interest revenue, so they have no reason to reward a balance transfer.
The real cost: balance transfer fees
Even if a card did award points on balance transfers, the fee would likely erase the benefit. Most balance transfer fees range from 3 to 5 percent of the amount transferred. On a $5,000 balance, that is $150 to $250 paid upfront, usually added to your new balance.
Some cards offer zero percent balance transfer fees for a limited time — typically the first 60 days after opening the account. If you are moving a balance, this window is worth targeting. A zero-fee transfer saves you hundreds of dollars compared to a card charging 5 percent.
Even earning points on the transfer would not offset a 5 percent fee. Most rewards cards offer 1 to 2 points per dollar spent. At 1.5 points per dollar, a $5,000 transfer would earn 7,500 points — worth roughly $75 to $150 depending on redemption value. The 5 percent fee ($250) still costs you more than the points are worth.
Where to earn points during a balance transfer period
The strategy that actually works is to earn points on new purchases while your transferred balance sits at zero percent interest. If you move $5,000 to a new card with a 12-month zero percent period and no balance transfer fee, you have freed up $5,000 in monthly interest charges. Use that card for everyday spending — groceries, gas, utilities — and earn points on those transactions.
A card offering 2 percent cash back on all purchases will earn you $100 to $200 in rewards over a year if you charge $5,000 to $10,000 in new purchases. That is real money, and it comes from the purchases themselves, not the balance transfer.
The key is discipline: do not rack up new debt on the card while paying down the transferred balance. The goal is to use the zero percent period to pay down the old debt faster, not to accumulate more.
Comparing balance transfer cards: what actually matters
When evaluating a balance transfer card, rank these factors in order:
- Balance transfer fee: Look for zero percent, or as close as you can find. A 3 percent fee on $10,000 is $300 — that is the real cost.
- Introductory APR and length: Longer is better. A 21-month zero percent period gives you nearly two years to pay down the balance without interest charges.
- Regular APR after the intro period: This matters only if you do not pay off the balance in time. A lower regular rate is a safety net.
- Rewards on new purchases: This is a bonus, not the main event. A card offering 1.5 percent cash back on purchases is fine; do not pay an annual fee just to chase higher rewards.
Points on the balance transfer itself should not appear on your list. It is not a factor because it does not exist on the cards worth using.
What happens if you miss the zero percent deadline
If you do not pay off the transferred balance before the introductory period ends, the regular APR kicks in — often 18 to 25 percent. At that rate, the interest charges will dwarf any points you earned on new purchases.
This is why the introductory period length matters more than rewards. A 12-month zero percent offer on a card with no rewards is better than a 6-month offer on a card with 2 percent cash back. The interest you avoid is worth far more than the points you earn.
Before you transfer, calculate whether you can realistically pay off the balance in time. If you are carrying $8,000 and the zero percent period is 12 months, you need to pay roughly $667 per month. If that is not feasible, a balance transfer may not be the right move.
Frequently Asked Questions
Can I earn points on a balance transfer if I use a rewards card?
No. Even if your card earns points on purchases, the balance transfer itself will not earn rewards. The transfer is a separate transaction type. You can earn points on new purchases you make on that card, but not on the transferred balance.
Do any cards offer points on balance transfers?
Virtually no major credit card offers points on balance transfers. Some premium cards may allow points on transfers, but the benefit is negligible compared to the balance transfer fee you will pay. The fee always outweighs the points value.
Is a balance transfer worth it if I am not earning points?
Yes, if the introductory APR is significantly lower than your current rate and the balance transfer fee is zero or very low. The interest you avoid is the real savings. On a $5,000 balance at 20 percent APR, you would pay $1,000 in interest over a year. A zero percent balance transfer saves you that $1,000, with no points needed.
What if my current card offers better rewards than the balance transfer card?
Switch to the balance transfer card for the transferred balance and the zero percent period. Keep your old card open for other purchases if it has better rewards. You can always move new spending back to the higher-rewards card once the balance transfer period ends.
Does the balance transfer fee count toward my spending for rewards?
No. The balance transfer fee is a separate charge, not a purchase. It will not earn points, and it will not count toward any spending thresholds or bonuses on the card.