The basic steps for transferring a balance

A balance transfer moves debt you owe on one credit card to a different card, usually one with a lower interest rate. You contact the new card issuer (the bank or company offering the card you want to transfer to), give them the account number and balance of your old card, and they pay off that debt on your behalf. The amount you transferred then becomes a balance on the new card.

The process itself takes about 5 to 14 business days from the moment you request it. During that time, you should keep making minimum payments on your old card until the transfer completes—the old card issuer won't know the balance is being paid off until the money arrives. Once the transfer posts, your old card balance drops to zero (or to whatever portion didn't transfer), and your new card shows the transferred amount as a balance you now owe to them.

Most balance transfers come with a fee, usually 3 to 5 percent of the amount you're moving. This fee gets added to your new card balance, so if you transfer $5,000 with a 3 percent fee, you'll owe $5,150 on the new card. Some cards offer a 0 percent fee for transfers made within a certain window (often the first 60 days after opening the account), so check your card's terms before you start.

Key Takeaways

  • You request the transfer through the new card issuer, providing your old card's account number and the amount you want to move.
  • The transfer takes 5 to 14 business days to complete, and you should keep paying your old card until it posts.
  • A balance transfer fee of 3 to 5 percent is added to your new card balance unless the card offers a promotional 0 percent fee period.
  • The new card usually has a lower interest rate or an introductory 0 percent rate for a set period, which is why the transfer saves you money.

Where to request the transfer

You start the transfer by contacting the card issuer you want to transfer to—not your old card company. This is usually the bank or credit card company whose card you just opened or already own. Most issuers let you request a balance transfer through their website, mobile app, or by calling their customer service number (the number is on the back of your new card).

When you contact them, have your old card's account number ready, along with the exact balance you want to transfer. Some people transfer their entire balance; others transfer only part of it. You can transfer to a card from a different company entirely (moving a Chase balance to a Capital One card, for example) or to a different card from the same issuer if you have multiple cards with them.

What happens to your old card after the transfer

Once the transfer completes and your old card balance reaches zero, you have a choice: close the card or leave it open with a zero balance. Closing it immediately can hurt your credit score slightly because it reduces the total credit available to you. Leaving it open costs nothing if there's no annual fee, and it preserves your available credit, which helps your credit score.

If your old card does have an annual fee and you're not using it anymore, closing it makes sense. But if it's a card with no annual fee, most people leave it open and unused. Just make sure you're not tempted to run up a new balance on it while you're paying down the transferred amount on your new card.

How to know if a balance transfer will actually save you money

A balance transfer only saves you money if the interest rate on the new card is lower than what you're paying now, or if the new card offers an introductory period at 0 percent interest. Do the math before you request the transfer.

If you're transferring $5,000 at 3 percent fee to a card with a 0 percent introductory rate for 12 months, you pay $150 in fees upfront and then $0 in interest for a year. If you were paying 18 percent interest on your old card, you'd have paid roughly $900 in interest over that same year. The transfer saves you about $750, even after the fee.

But if you're transferring to a card with a regular interest rate of 15 percent (only slightly lower than your current 18 percent), and you'll take 24 months to pay it off, the math might not work in your favor once you factor in the transfer fee. Use a calculator or write out the numbers: (balance × current interest rate × time in years) versus (balance × new interest rate × time in years) plus the transfer fee. If the new card is cheaper, move forward.

What credit score impact to expect

Requesting a balance transfer triggers a hard inquiry on your credit report, which can lower your score by a few points temporarily. Opening a new card (if you're transferring to a card you don't yet have) also lowers your score slightly because it reduces your average account age and adds a new account to your history.

However, once the transfer completes and your old card balance drops to zero, your credit utilization—the percentage of your available credit that you're actually using—improves. This usually raises your score back up within a few months. The net effect for most people is a small dip immediately after applying, followed by a recovery and then an improvement as you pay down the transferred balance.

Common mistakes to avoid

The biggest mistake is running up a new balance on your old card while the transfer is processing. You requested the transfer to pay off that card, not to free up room to borrow more. If you accumulate new debt on the old card while the transfer is in progress, you'll end up owing money on both cards.

Another common error is missing the introductory 0 percent period. If your new card offers 0 percent interest for 12 months, mark your calendar for month 11 and plan to have the balance paid off by then. Once that period ends, the regular interest rate kicks in, and any remaining balance will start accruing interest at the card's standard rate (often 15 to 25 percent).

A third mistake is transferring to a card with a higher regular interest rate just because it has a longer 0 percent period. If the card's regular rate is 22 percent and your current card is 16 percent, you're setting yourself up for expensive interest after the promotional period ends. The introductory rate is only valuable if you plan to pay off the balance before it expires.

When a balance transfer doesn't make sense

If you can pay off your entire balance within a few months, a balance transfer might not be worth the fee. A $2,000 balance with a 3 percent fee costs $60 to transfer. If you can pay it off in two months, you'd save maybe $30 in interest—so the transfer fee nearly wipes out your savings.

A balance transfer also doesn't help if you're going to keep borrowing. If you transfer a balance to lower your interest rate but then immediately charge new purchases to the same card, you're not solving the underlying problem. Balance transfers work best for people who are committed to paying down the debt without adding to it.

Frequently Asked Questions

Can I transfer a balance to a card from the same bank?

Yes. You can transfer a balance from one card to another card issued by the same bank. However, some banks don't allow you to transfer a balance between their own cards, so check your card's terms or call customer service to confirm. If they do allow it, the process is the same as transferring to a different bank.

What if my balance transfer is denied?

The new card issuer might deny your transfer request if your credit score is too low, if you have too much existing debt, or if you're requesting a transfer amount larger than your credit limit. If denied, you can try requesting a smaller transfer amount, or you can wait a few months, improve your credit score, and apply again. Some issuers will reconsider if you call and speak to a representative.

Do I have to transfer my entire balance?

No. You can transfer any amount up to your new card's credit limit. Some people transfer only the portion of their old balance that's at the highest interest rate, or they transfer an amount they're confident they can pay off before the introductory period ends. You control how much moves.

What if I can't pay off the transferred balance before the 0 percent period ends?

The remaining balance will start accruing interest at the card's regular rate once the promotional period expires. If you know you won't be able to pay it off in time, look for a card with a longer 0 percent period, or consider a different strategy like a personal loan at a fixed rate. Some people also do a second balance transfer to another card with a new 0 percent period, though this adds another fee.

Does the balance transfer fee get charged immediately?

The fee is usually added to your new card balance right away, so you see it reflected in your first statement. You don't pay it separately—it's just part of what you now owe on the new card. This is why it's important to factor the fee into your savings calculation before you request the transfer.