The basic steps for transferring a balance

A balance transfer moves debt from one credit card to another, usually to a card offering a lower interest rate for a set period. You do not move money yourself — the new card's issuer pays off your old card's balance on your behalf, and you then owe that amount to the new card instead.

The process has four main steps: open the new card, request the transfer during or shortly after opening it, wait for the issuer to pay your old card, and then pay down the new balance. Most of this happens between the two card companies, not through your bank account.

The entire transfer typically takes 5 to 21 days from request to completion. During that time, you still owe your old card — do not stop paying it until you see the balance drop to zero.

Key Takeaways

  • The new card's issuer pays your old card directly, so you need your old card number and the balance you want to transfer before you apply.
  • Balance transfers usually come with a fee of 3 to 5 percent of the amount transferred, charged to your new card.
  • The low interest rate (often 0 percent) lasts only for a set period — typically 6 to 21 months — then the regular rate kicks in.
  • You must continue paying your old card until the transfer completes and the balance shows as zero.
  • If you do not pay off the transferred balance before the promotional period ends, you will owe interest at the card's regular rate on whatever remains.

What you need before you start

Gather three pieces of information before you open the new card. First, have your old credit card number ready — you will need it to tell the new issuer which balance to transfer. Second, know the exact balance you want to move, or at least a close estimate. Third, know your old card's issuer name (Visa, Mastercard, American Express, or your bank's name).

You do not need to contact your old card's issuer first. The new card company handles that part. However, if your old card has a very high balance, check whether the new card's credit limit will be high enough to accept the full transfer — many issuers will only transfer up to your new credit limit, sometimes less.

Opening the card and requesting the transfer

When you open the new card, you will see a section asking whether you want to transfer a balance. This appears on the application itself, or in the welcome materials after you are approved. You will enter your old card number, the amount to transfer, and confirm the request.

If you miss this window during signup, you can usually request the transfer by calling the new card's customer service number or logging into your online account within 60 days of opening the card. Some issuers allow transfers up to 120 days after opening, but do not wait — the sooner you request it, the sooner interest stops accruing on your old card.

The new card company will then contact your old card's issuer and request payment. You will receive a confirmation showing the transfer amount, the fee charged, and the expected completion date.

Understanding the balance transfer fee

Nearly all balance transfers charge a fee, typically 3 to 5 percent of the amount transferred. This fee is added to your new card balance immediately — if you transfer $5,000 with a 4 percent fee, you now owe $5,200 on the new card.

The fee appears on your first statement. Some cards offer a 0 percent fee for transfers made within a certain window (often the first 60 days), so check your card's terms before requesting the transfer. Even with a fee, a balance transfer often saves money if the new card's interest rate is significantly lower than your old card's rate.

What happens while the transfer is processing

Once you request the transfer, the new card's issuer sends payment to your old card's issuer. This usually takes 5 to 21 days. During this time, your old card still shows an active balance, and interest may still accrue on it — keep making your regular minimum payment to avoid a late fee.

You will see the transfer appear on your new card's statement within a few days, even if the old card has not yet received the payment. The new card will show the transferred balance and the fee. Your old card will show the balance dropping once the payment arrives, which typically happens within two weeks.

Do not assume the transfer is complete just because it shows on your new card. Check your old card's balance online or by calling to confirm it has reached zero before you stop paying that card.

Managing the balance during the promotional period

The main advantage of a balance transfer is the promotional interest rate, usually 0 percent, that lasts for a set period. This period varies widely — common lengths are 6 months, 12 months, 18 months, or 21 months. Your card's terms will specify exactly how long the rate lasts.

During this period, no interest accrues on the transferred balance, so every payment you make goes directly toward reducing what you owe. This is the time to pay down the balance as aggressively as you can. If you pay off the entire transferred amount before the promotional period ends, you owe no interest on that debt.

If you still owe a balance when the promotional period ends, the card's regular interest rate applies to whatever remains. This rate is often 15 to 25 percent, depending on your creditworthiness and the card's terms. For this reason, balance transfers work best if you can pay off most or all of the transferred amount during the promotional period.

What to avoid during and after the transfer

Do not close your old card immediately after the transfer completes. Wait at least a few months, then close it if you want to. Closing a card can temporarily lower your credit score, and closing an old card removes its credit history from your record, which can also affect your score.

Do not make new purchases on your new card during the promotional period if you can avoid it. New purchases usually accrue interest at the regular rate right away, even while the transferred balance sits at 0 percent. If you must use the card, pay off new purchases immediately to avoid interest charges.

Do not miss a payment on your new card. A single late payment can end the promotional rate early and apply the regular interest rate to your entire balance, including the transferred amount. Set up automatic minimum payments if you are worried about forgetting.

Frequently Asked Questions

Can I transfer a balance if I have bad credit?

Balance transfer cards typically require good to excellent credit — usually a score of 670 or higher. If your score is lower, you may not be approved, or you may be approved with a higher interest rate and a smaller credit limit. Some cards offer balance transfers to people with fair credit, but the promotional rate may be shorter or the fee higher.

What if my new card does not approve the full transfer amount?

The issuer may approve you for a lower credit limit than you requested, which means the transfer will be capped at that limit. You can transfer the full amount in two separate transfers to two different cards, or transfer what you can now and move the remaining balance later. Contact the new card's customer service to ask what your transfer limit is before you request it.

Can I transfer a balance between cards from the same bank?

Most banks do not allow you to transfer a balance from one of their cards to another of their cards. You will need to open a card from a different issuer. Check the card's terms or call customer service to confirm before you apply.

What happens if I do not pay off the balance before the promotional period ends?

Any remaining balance will start accruing interest at the card's regular rate, which is typically 15 to 25 percent. If you owe $3,000 when the promotional period ends and you do not pay it off, you will owe interest on that $3,000 going forward. This is why it is important to pay down the balance as much as possible during the promotional period.

Can I do another balance transfer if I still owe money on my first one?

Yes, you can open a second balance transfer card and move the remaining balance from your first card to the second one, as long as you are approved. However, you will pay another balance transfer fee on the new transfer. This strategy works if the new card's promotional period is long enough to pay off the balance, but doing multiple transfers can become expensive and complicated.