How To Do a Credit Card Balance Transfer
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Written by
Meghan Hunter
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Edited by
Jasmin Baron, CCC™
If you’re stuck paying high interest rates on credit card debt, a balance transfer credit card can be a solid solution to help you save money. A balance transfer is straightforward: You move debt from one (or more) credit cards to another card with a lower interest rate, typically one offering a promotional 0% APR period.
I utilized a balance transfer a few years ago after an expensive cross-country move. The credit card I’d used to pay for my moving expenses had an APR of around 24%, and transferring the balance to a card with a 0% intro rate saved me a few hundred dollars in interest over the next year.
While it’s not complicated, there are specific steps you’ll want to follow to ensure you complete a credit card balance transfer correctly and maximize your savings.
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1. Check Your Credit and Pick a Card
Before choosing a new credit card, it helps to know your credit score. Most of the better balance transfer offers are aimed at people with good to excellent credit, usually a FICO score of 670 or higher. You can check your score for free through your current credit card issuer or free credit monitoring services.
Once you know your score, look for cards with a long 0% intro APR period (12 to 24 months) and reasonable balance transfer fees. You can read our guide to the best balance transfer credit cards for all the top options, but here are a few to get you started:
- U.S. Bank Shield™ Visa® Card: 0% intro APR on purchases and balance transfers for 24 billing cycles. After that the APR is variable, currently 17.24%-28.24%.
- Wells Fargo Reflect® Card: 0% intro APR for 21 months from account opening on purchases and on qualifying balance transfers, then a 17.49%, 23.99%, or 28.24% Variable APR.
- Citi Double Cash® Card (an advertising partner): 0% Intro APR on balance transfers for 18 months, then 17.49% - 27.49% (Variable). A 17.49% - 27.49% (Variable) APR will apply for purchases.
- Chase Freedom Unlimited®: 0% Intro APR on Purchases and Balance Transfers for 15 months, then 18.49% - 27.99% Variable.
- Bank of America® Customized Cash Rewards credit card: 0% Intro APR for 15 billing cycles for purchases, and for any balance transfers made in the first 60 days. After the intro APR offer ends a 17.49% - 27.49% Variable APR will apply.
- Blue Cash Everyday® Card from American Express (an advertising partner): 0% intro APR on purchases and on balance transfers for 15 months from the date of account opening, then 19.49%-28.49% Variable APR.
- Capital One VentureOne Rewards Credit Card: 0% intro on purchases and balance transfers for 15 months, then 18.49% - 28.49% (Variable) APR. Balance transfer fee applies.
- Discover it® Cash Back: 0% Intro APR on purchases and on balance transfers for 15 months, then 17.49% - 26.49% Variable APR.
2. Calculate Your Transfer Amount and Monthly Payments
Do some quick math to figure out your monthly payments based on the amount you want to transfer. To calculate a rough estimate of your monthly payment, add up the balances you want to pay off, then divide that total by the promotional period length.
For example, transferring $6,000 to a card with a 0% intro APR for 18 months means you’d need to pay about $333 per month to pay it off. But remember, the balance transfer fee (typically 3% to 5%) gets added to your balance immediately. With a 3% fee, that $6,000 becomes $6,180, so you’re looking at closer to a $343 monthly payment. The goal is to have it completely paid off by the end of the promotional period.
3. Apply for the Card
Some issuers let you request the balance transfer as part of the application, while others make you wait until you’re approved. Either way, during the application process, you’ll usually need:
- Issuers of the cards you’re transferring from
- Account numbers
- Amounts you want to transfer
- Basic personal and financial info
Many applications give an instant decision. If approved, the physical card usually shows up within a week or so.
4. Initiate Your Balance Transfer
After you get the card, you’ll need to initiate the transfer if you haven’t already during the application. This can usually be done:
- Online through your account dashboard (usually the fastest)
- By calling customer service
- With balance transfer or “convenience” checks, if the issuer sends them
My balance transfer was submitted online, and the process took just a few minutes. That said, there are typically transfer limits and restrictions to be aware of.
Transfer Limits and Restrictions
You can’t transfer more than your credit limit, and the transfer fee counts toward that limit. So, if you have a $5,000 line of credit and you’re paying a 3% transfer fee, you can move about $4,850 in actual debt ($4,850 + $145.50 fee = $4,995.50).
Also, you generally can’t transfer a balance between cards from the same bank. The balance on a Chase credit card, for example, needs to be transferred to a non-Chase issuer, such as Citi or American Express.
5. Keep an Eye On the Process
You’ll usually get confirmation once the transfer has been submitted. The actual transfer time can take anywhere from a few days to a couple of weeks. But keep making the minimum payments on your first card until you see the balance on that card drop to $0. Assuming it’s “done” too early is an easy way to miss a payment accidentally.
6. Stick to Your Payoff Plan
Set up automatic payments and make sure you know exactly when the promo period ends. I like using calendar reminders on my phone for this sort of thing. This is a critical step, because missing a payment can cancel your 0% APR and trigger a penalty rate, which defeats the whole purpose.
What Happens After Your Balance Transfer?
Don’t jump to closing your old card after the balance transfer is complete. Leaving it open can actually help your credit utilization and therefore, improve your credit score.
Your old card will show a payment for the transferred amount. On the new card, you’ll owe the transferred balance plus the fee, and you’ll need to make at least the minimum payment every month.
If you stay on track and pay the balance in full by the end of the promo period, a balance transfer can be a really effective way to get out from under high-interest debt.
Frequently Asked Questions About Balance Transfers
How long does a balance transfer take?
Balance transfers typically take 5 to 7 days to complete, though some can take a few weeks. The timeline depends on the card issuers you’re dealing with. You should always continue making payments on your original card until you confirm the transfer is complete to avoid penalties and interest.
Can I transfer a balance from multiple cards?
Yes, most balance transfer cards allow you to transfer balances from multiple cards. However, the total transferred can’t exceed your credit limit (minus the balance transfer fee).
What happens if I’m denied for a balance transfer card?
You’ll receive a letter explaining why, and common reasons include things like insufficient credit history, too many recent applications or a low credit score. But you can work to improve your credit and reapply in a few months.
Will a balance transfer hurt my credit score?
Your score may dip slightly due to the hard inquiry and the new account, which lowers your average account age. However, if you continue making on-time payments and the balance transfer improves your credit utilization ratio, your score should bounce back within a few months.
Is there a limit to how much I can transfer?
Yes, balance transfer limits are typically equal to or a percentage of your approved credit limit, based on your credit profile.
