The basic steps for moving a balance
A balance transfer moves debt from one credit card to another, usually one with a lower interest rate. You do not pay off the first card yourself. Instead, you give the new card company the details of your old card, and they pay that balance on your behalf. The debt then appears on the new card's statement.
The process typically takes between 5 and 14 days from the moment you request it. During that time, both cards remain active — keep making payments on the old card until the transfer completes, because the balance does not disappear from it immediately. Once the transfer posts, the old card's balance drops to zero (or to any remaining balance the new card did not cover).
Most credit card companies let you request a balance transfer online through your account, by phone, or sometimes in person at a branch if it is a bank card. You will need the account number of the card you are transferring from, the amount you want to move, and the cardholder's name on that account.
Key Takeaways
- The new card company pays your old card company directly, so the transfer takes 5 to 14 days and both cards stay active until it completes.
- Balance transfer fees typically range from 3 to 5 percent of the amount you move, charged upfront and added to your new balance.
- You can transfer only up to your credit limit on the new card, and the company may offer you a lower limit than you requested.
- The lower interest rate usually lasts 6 to 21 months depending on the card; after that, the regular rate applies to any remaining balance.
- If you miss a payment during the promotional period, the card company can end the offer and charge you the regular rate immediately.
Understanding balance transfer fees
Nearly every balance transfer comes with an upfront fee. This fee is a percentage of the amount you transfer — typically 3 to 5 percent, though some cards charge as little as 1 percent or as much as 8 percent. A few cards occasionally offer 0 percent transfer fees for a limited time, but this is uncommon.
The fee is added to your new card balance immediately, even before you make your first payment. If you transfer $5,000 at a 3 percent fee, you owe $5,150 on the new card. This matters because the fee itself does not get the promotional interest rate — you pay interest on it at the regular rate unless the card's offer covers all balances.
Before you request a transfer, ask the card company what fee applies to you specifically. Some cards charge different rates based on your credit score or the card type. Knowing the exact fee helps you decide whether the lower interest rate saves you enough money to make the transfer worth doing.
How credit limits affect what you can transfer
You can transfer only as much as your credit limit allows on the new card. If your new card has a $10,000 limit and you want to transfer $12,000, the company will transfer only $10,000 (or sometimes less, depending on their policy). The rest stays on your old card.
Some card companies reserve part of your credit limit for new purchases. If your limit is $10,000 but the company reserves $3,000 for purchases, you can transfer only $7,000. This policy varies by card and by company, so ask before you apply or request the transfer.
If you are approved for a new card specifically to do a balance transfer, the company may offer you a lower limit than you hoped for. You can request a higher limit after you have had the card for a few months and made on-time payments, but you cannot count on this happening before you need to transfer.
The promotional interest rate and what happens after
The main reason people do balance transfers is the promotional interest rate — usually 0 percent for a set period. This period typically lasts 6 to 21 months, depending on the card and the offer. During this time, you pay no interest on the transferred balance, only on any new purchases you make (unless the offer covers those too).
When the promotional period ends, the regular interest rate kicks in for any balance still remaining. If you transferred $5,000 and paid off $3,000 during the promotional period, the remaining $2,000 now accrues interest at the card's standard rate, which can be 15 to 25 percent or higher.
The card company will tell you the exact end date of the promotional period before you complete the transfer. Mark this date on your calendar. If you cannot pay off the balance before the rate changes, you may want to look for another card with a balance transfer offer and move the remaining balance again — though this means paying another transfer fee.
What happens if you miss a payment
Missing even one payment during the promotional period can end the offer immediately. The card company can raise your interest rate to the regular rate right away, even if you make the missed payment a few days late. This is called a penalty rate, and it applies to the entire transferred balance, not just future purchases.
Set up automatic payments for at least the minimum amount due, even if you plan to pay more. This protects you if you forget a due date. Most card companies let you choose the payment date when you set up automatic payments, so pick a date shortly after you get paid.
If you do miss a payment, contact the card company immediately. Some will reverse the penalty rate if you pay within 30 days and have a clean payment history otherwise. Do not assume they will — ask directly.
Deciding whether a balance transfer makes sense for you
A balance transfer saves you money only if you pay off the balance before the promotional period ends or if the regular rate on the new card is still lower than your old card's rate. Do the math: multiply your current balance by your current interest rate to see how much interest you would pay over the promotional period. Then compare that to the transfer fee plus any interest you would pay on the new card.
If you are carrying a small balance and your current card's rate is not extremely high, the transfer fee might cost more than you would save. If you are carrying a large balance and the promotional period is long, the transfer usually makes sense.
Be honest about whether you can pay down the balance during the promotional period. If you cannot, you are just moving debt to a new card and will owe interest again when the rate changes. A balance transfer is a tool for paying off debt faster, not for making debt disappear.
Frequently Asked Questions
Can I transfer a balance from a store credit card to a bank card?
Yes. Most balance transfer offers accept balances from any credit card, including store cards. You will need the account number and the cardholder name. Some store cards have very high interest rates, so transferring to a card with a promotional 0 percent offer can save significant money.
What if I want to transfer a balance from a card I share with someone else?
You can transfer only the portion of the balance that is in your name. If you are an authorized user on the card but not the primary account holder, you cannot request the transfer — the primary cardholder must do it. If you are both responsible for the balance, contact the new card company to ask how they handle joint accounts.
Do I have to close my old card after the balance transfers?
No, and closing it can hurt your credit score. Keeping the old card open (even with a zero balance) helps your credit history and gives you more available credit. You can simply stop using it. If the card charges an annual fee, you may want to close it or call and ask for the fee to be waived.
Can I make new purchases on the new card while the balance transfer is processing?
Yes, but new purchases usually do not get the promotional interest rate. They accrue interest at the regular rate from the day you make them. Some cards offer promotional rates on both transfers and purchases, but you have to check the specific offer. Keep new purchases to a minimum while you are paying down the transferred balance.
What if the balance transfer is denied?
The new card company may deny the transfer if your credit limit is too low, if there is a problem with the account information you provided, or if the old card is closed or fraudulent. Contact the new card company to ask why. If the information was wrong, you can request the transfer again. If your credit limit is the issue, you can request a higher limit or apply for a different card.