Balance transfer cards can be powerful tools when used strategically.

• Start by transferring your balance to a card with a 0% introductory APR to pause interest and give yourself breathing room.
• During this window, focus on making consistent, on-time payments to aggressively reduce your principal.
• Try to avoid using the card for new purchases, as these may accrue interest and undermine your progress.
• Always pay attention to the length of the promotional period and set reminders before it ends. If you’re disciplined and plan, you have the potential to save a lot of money on interest.

A 0% APR card lets you avoid paying interest for a set introductory period, usually 12–21 months. You can use it for purchases, balance transfers, or both – giving you time to pay down your balance without interest adding up.

Not all balance transfer cards are created equal. Look beyond flashy offers and focus on what really matters: length of the 0% APR period, balance transfer fees, and whether there’s a penalty APR in the fine print of the card details. A longer intro period gives you more time to pay off your debt without interest, while a lower transfer fee saves you money upfront. Consider whether the card charges an annual fee and if it aligns with your financial habits. The best card is the one that meets your financial goals. If you are interested in a card that offers rewards on spending make that a secondary consideration. Focus on paying down that balance within the promotional period and then utilize the card to start earning rewards.

Start by checking the length of the 0% intro APR period—cards typically offer 12 to 21 months interest-free, and longer windows give you more time to pay down balances. Next, compare purchase APRs by using preapproval tools, which can reveal your estimated rate before applying. Finally, think about the card’s value after the intro period: cards with the longest 0% APR windows often lack rewards, while those with shorter windows may offer cash back, travel perks, or protections like annual credits and cell phone coverage.

A 0% APR card offers temporary interest relief, but rates rise once the intro period ends. A low-APR card, on the other hand, keeps borrowing costs lower long-term but usually offers fewer perks and no extended interest-free window.

A balance transfer card can be a very powerful tool, but mistakes can still happen. One common mistake is only making minimum payments during the 0% APR period, which leaves a large balance once interest kicks in. Another common mistake is forgetting to factor in the transfer fee, which can be 3–5% or more. Avoid using the new card for additional purchases, as this could trigger unexpected interest charges. A very detrimental mistake that should be avoided is missing a payment. This results in a late fee, as well as potentially wiping out your temporary 0% APR. Consider automating payments paying at least the minimum to avoid this dangerous mistake. By understanding these pitfalls in advance, you can set up an effective plan and maximize your savings. Learn from common missteps—and let your balance transfer cards work for you, not against you.

Balance transfer fees typically range from 3% to 5% of the transferred amount, depending on the card. Even though the fee may seem small, it can add up, especially if you’re transferring a large balance. For example, transferring a $5,000 balance with a 3% fee will cost $150 upfront. This fee becomes part of the total balance on the new card, but if it’s less than the interest you’d pay by carrying that balance on a high-interest card, you can come out well ahead.

It may be possible to negotiate a lower balance transfer fee if you have a strong credit history and long-term customer status with the card issuer. An existing, positive banking relationship may help you secure a fee reduction or waiver, though this isn’t common.

If you’re a loyal client, contacting the issuer’s customer service department and asking about available options could be worth a shot. Mentioning competitive offers from other cards with lower or no transfer fees can strengthen your case. Even if the fee isn’t reduced, the issuer may offer other options, such as cards with a longer 0% APR period.

When a balance transfer is initiated, the fee is typically added to the transferred balance on the new credit card.

Suppose you transferred a $10,000 balance to the Wells Fargo Reflect® Card, which charges a balance transfer fee of 5%, min: $5. The balance transfer fee works out to $500 ($10,000 x 5%), so your total amount owing would then be $10,500. But you’d receive a 0% intro APR for 21 months from account opening on qualifying balance transfers (followed by a 17.99%, 24.49%, or 28.74% Variable APR), giving you ample time to tackle your debt.

The balance transfer fee is part of how the credit card issuer still generates revenue when it’s not collecting interest. A transfer fee applies when you move a balance from one credit card to another. Some cards may offer promotional periods where the fee is reduced (or very rarely, waived). It’s critical to review the terms carefully so you know what you’ll owe on your new balance.

Keep in mind that after you’ve transferred a balance, you’re still responsible for making the minimum payment each month, even if you’re not being charged interest for a specified time. Not making the minimum payment has major consequences — for example, you could lose your introductory rate on a 0% APR balance transfer card, and be subject to a penalty fee for a late payment.
Note: You typically can’t transfer balances between cards issued by the same bank.

A balance transfer fee can be worth it if the money you save on interest with a balance transfer is more than the fee itself.

For instance, if you have a large balance on a card with a high interest rate, moving that balance to a card with a 0% APR for a limited period could save you a lot in the long run, even with the fee. The longer the intro APR period, the more time you have to chip away at your debt without being dragged down by interest charges.

It’s important to crunch the numbers and make a plan to pay off your debt before the introductory period expires. If you don’t pay off the balance before the 0% APR period ends, you could end up paying more in the long run.

Typically, balance transfer fees are 3% to 5% of the amount transferred. On a $1,000 balance, that translates to $30 (3% fee) to $50 (5% fee).