The basic steps to transfer a balance

A balance transfer moves the money you owe on one credit card to a different card, usually one with a lower interest rate. You do not move the money yourself—the new card's issuer pays off the old card on your behalf, and you then owe that new issuer instead.

The process has four main steps. First, you open a new credit card account (or use an existing one if the issuer allows transfers between your own cards). Second, you request the balance transfer, either during the application or afterward through the card issuer's website or phone line. Third, the new card's issuer contacts your old card issuer and arranges payment. Fourth, you receive a confirmation showing the transferred amount and your new balance on the new card.

The entire process typically takes 5 to 21 days from request to completion. During that time, you should keep making payments on your old card to avoid late fees, since the transfer is not instant.

Key Takeaways

  • The new card's issuer pays your old card issuer directly, so you do not handle the money yourself.
  • Balance transfers usually come with a fee of 3 to 5 percent of the amount transferred, charged to your new card.
  • The main benefit is a lower interest rate for a set period (often 6 to 21 months), which saves you money if you pay down the balance during that time.
  • You must request the transfer through the new card issuer—your old card issuer cannot initiate it.

What information you need before you start

Gather three pieces of information before you contact the new card issuer. You need the account number of the card you want to transfer from, the name of that card's issuer (Visa, Mastercard, American Express, Discover, or the bank that issued it), and the exact balance you want to move. You can find all of this on your old card's statement or by logging into that account online.

You also need to know your current credit score range, because balance transfer offers vary widely based on creditworthiness. If your score is below 670, many issuers will not approve you for a balance transfer card, or will offer you a higher interest rate and a shorter promotional period. You can check your score free through your bank, your credit card issuer, or services like Credit Karma or AnnualCreditReport.com.

The balance transfer fee and how it works

Nearly every balance transfer comes with an upfront fee, typically 3 to 5 percent of the amount you transfer. If you move a $5,000 balance, expect to pay $150 to $250 as a fee. This fee is added to your new card's balance immediately—you do not pay it separately.

Some cards marketed to people with excellent credit offer 0 percent balance transfer fees, but these are rare and require a score above 750 in most cases. Before you apply, check the card's terms to see the exact fee percentage. The fee is one of the main costs of a balance transfer, so it matters whether you are paying 3 percent or 5 percent.

How the promotional interest rate period works

The main reason to do a balance transfer is the promotional period—a set number of months during which your transferred balance charges little or no interest. Common promotional periods are 6 months, 12 months, 18 months, or 21 months at 0 percent APR. After that period ends, the regular interest rate kicks in, which is usually 15 to 25 percent depending on your creditworthiness.

The clock starts the day your transfer completes, not the day you apply. If you are approved on March 15 but the transfer does not finish until April 2, your promotional period begins April 2. This is why knowing the transfer timeline matters—you want to know exactly when your 0 percent period ends so you can plan your payoff.

If you do not pay off the transferred balance before the promotional period ends, interest accrues on whatever remains. A $5,000 balance at 20 percent APR costs you roughly $833 per year in interest alone. This is why a balance transfer only saves you money if you pay down the balance during the promotional window.

Requesting the transfer through your new card issuer

You can request a balance transfer in two ways: during the credit card application, or after your account is open. If you apply for a new card online, the application usually includes a section asking whether you want to transfer a balance. You enter your old card's account number, the issuer's name, and the amount you want to move. The issuer processes this request as part of your application.

If you already have the new card open, or if you did not request a transfer during application, you can start one through the card issuer's website or by calling their customer service number. Log in to your account online and look for "Balance Transfer" or "Transfers" in the menu, or call the number on the back of your new card. A representative will ask for your old card's account number and the amount to transfer, then submit the request on your behalf.

Some issuers limit how much you can transfer—often to your credit limit or a percentage of it. If you want to transfer $8,000 but your new card's limit is $5,000, you can only move $5,000 (or slightly less, depending on the fee). You would need to pay off the remaining $3,000 on your old card separately.

What happens after you request the transfer

Once you submit the request, the new card issuer contacts your old card issuer and arranges payment. You will receive a confirmation email or letter showing the transfer amount, the fee charged, and your new balance on the new card. This confirmation also shows when your promotional period ends.

During the processing period (usually 5 to 21 days), continue paying your old card as normal. The old card issuer may not have received the payment yet, so missing a payment could trigger a late fee or damage your credit score. Once the transfer completes, your old card's balance will drop to zero (or to whatever amount was not transferred), and your new card's balance will reflect the transferred amount plus the fee.

After the transfer completes, you can close your old card if you want, though closing it may slightly lower your credit score because it reduces your total available credit. Many people keep the old card open but unused to maintain their credit history and available credit.

When a balance transfer makes financial sense

A balance transfer saves you money only if two things are true: the promotional interest rate is significantly lower than your current rate, and you can pay down the balance during the promotional period. If you are currently paying 22 percent interest and move to a 0 percent card for 18 months, you save roughly $1,980 in interest on a $5,000 balance (assuming you pay it off evenly over 18 months). Subtract the $150 to $250 transfer fee, and you still come out ahead by $1,700 or more.

A balance transfer does not make sense if you cannot pay down the balance before the promotional period ends, or if the fee is so high that it wipes out your interest savings. It also does not make sense if you will simply run up debt on your old card again—you end up with two balances instead of one.

Frequently Asked Questions

Can I transfer a balance from one card to the same issuer's different card?

Most issuers allow you to transfer a balance between your own cards with them, but some do not. Call the issuer or check the card's terms before you apply. If they do allow it, the process is the same—you request the transfer through your account, and the issuer moves the balance for you.

What if my balance transfer is denied?

A denial usually means your credit score is too low, you have too much existing debt, or you have recent late payments. You can reapply after 6 months if you improve your score or pay down other balances. In the meantime, focus on paying down your current card's balance to reduce interest charges.

Does a balance transfer hurt my credit score?

A balance transfer causes a small, temporary dip in your score because the new card issuer runs a hard inquiry and opens a new account. Your score typically recovers within a few months. The long-term benefit—lower interest and faster payoff—usually outweighs this temporary dip.

Can I use a balance transfer to move money from one person's card to another person's card?

No. A balance transfer only works between accounts in your own name. You cannot transfer someone else's debt to your card, and they cannot transfer your debt to theirs. Each person must manage their own cards and debts.

What happens if I miss a payment on the new card during the promotional period?

Missing a payment can end your promotional rate immediately, even if you are only one day late. Your interest rate jumps to the regular APR, and you may face a late fee. Set up automatic payments or calendar reminders to avoid this.