Yes, you can transfer a balance from one credit card to another, but the process and costs depend on which card you're moving money to and the terms that card offers.
A balance transfer moves debt you owe on one card to a different card, usually one with a lower interest rate. The new card's issuer pays off your old balance, and you then owe that amount to the new card instead. This can reduce what you pay in interest if the new card has a promotional rate or a permanently lower rate than your current card.
Balance transfers are not automatic. You request one from the card issuer you want to transfer to, provide details about your old card and the amount you want to move, and the new issuer handles the payment to your old card's company. The transfer typically takes 5 to 14 business days to complete.
Key Takeaways
- Balance transfers move your debt from one card to another and usually involve a one-time fee of 3 to 5 percent of the amount transferred.
- Many cards offer a promotional period with 0 percent interest on transferred balances, but this rate expires after 6 to 21 months depending on the card.
- You must have a credit score in the good to excellent range to be approved for a balance transfer card, and the new card's credit limit may be lower than the balance you want to move.
- If you do not pay off the transferred balance before the promotional rate ends, the interest rate jumps to the card's regular rate, which can be 15 to 25 percent.
- You can transfer balances between different card issuers, but you cannot transfer a balance to another card from the same issuer in most cases.
How balance transfer fees work
Most cards charge a balance transfer fee when you move money to them. This fee is a percentage of the amount you transfer and is usually added to your new balance. Common fees range from 3 to 5 percent, though some cards charge as little as 2 percent or as much as 5 percent. A few cards offer 0 percent balance transfer fees, but these are rare and usually come with other trade-offs, such as a higher regular interest rate or a shorter promotional period.
The fee is charged once, at the time of the transfer. If you transfer $5,000 with a 3 percent fee, you owe $5,150 on the new card. This $150 is added to your balance and accrues interest after the promotional period ends, just like the rest of the debt.
Some people find that even with the fee, a balance transfer saves money if the new card's interest rate is much lower than the old one. Others find the fee makes the transfer not worth it, especially if they plan to pay off the balance quickly. You can calculate this by comparing the fee cost against the interest you would pay on your old card over the same time period.
Promotional interest rates and how long they last
The main reason people do balance transfers is to take advantage of a promotional interest rate, usually 0 percent. During this period, you pay no interest on the transferred balance, only on new purchases you make on the card (which may have a different rate). This gives you a window to pay down debt without interest piling up.
Promotional periods vary widely. Some cards offer 0 percent for 6 months, others for 12 months, and some for as long as 21 months. The length depends on the card and the issuer's current offers. Cards with longer promotional periods often have higher regular interest rates or higher annual fees, so the trade-off is built in.
When the promotional period ends, the regular interest rate takes effect on any remaining balance. If you still owe $3,000 when the 0 percent period expires, you start paying interest on that $3,000 at the card's standard rate, which is typically 15 to 25 percent. This is why balance transfers work best if you have a concrete plan to pay off the balance before the promotional rate ends.
Credit score requirements and approval odds
Balance transfer cards are usually only offered to people with good to excellent credit. Most issuers require a credit score of at least 670, and many prefer 700 or higher. If your score is lower, you may not be approved, or you may be approved for a lower credit limit than the balance you want to transfer.
Even if you are approved, the new card's credit limit may be less than the amount you want to transfer. For example, if you want to transfer $8,000 but the issuer only approves you for a $5,000 limit, you can only transfer $5,000. The remaining $3,000 stays on your old card. You can request a credit limit increase after you have had the new card for a few months, but there is no may provide the issuer will grant it.
Applying for a balance transfer card triggers a hard inquiry on your credit report, which can lower your score by a few points. If you are denied, the inquiry still appears on your report. For this reason, it makes sense to check your credit score before applying and to apply only to cards you have a reasonable chance of being approved for.
Transfers between cards from the same issuer
You generally cannot transfer a balance from one card to another card issued by the same company. If you have a Chase card with a $5,000 balance, you cannot transfer that balance to a different Chase card. This rule exists because the issuer already owns both debts and has no reason to move money between its own accounts.
The exception is if you call the issuer and ask them to move the balance as a courtesy, but this rarely results in the promotional rate or fee waiver you would get from a true balance transfer. Most people in this situation either pay down the old card's balance or open a card from a different issuer to transfer to.
If you want to move debt between cards from the same issuer, your best option is to pay down the old card as much as possible, then apply for a new card from a different issuer and transfer the remaining balance there.
What happens to your old card after a transfer
After a balance transfer completes, your old card's balance drops to zero (or to whatever amount you did not transfer). The card itself remains open unless you close it. Leaving the card open can help your credit score because it keeps your total available credit higher, which lowers your credit utilization ratio. However, an open card with a zero balance can also tempt you to run up new debt.
If you decide to close the old card, do so after the balance transfer is complete and confirmed. Closing a card before the transfer finishes can cause the transfer to fail or be reversed. Once the transfer is done and the balance is zero, you can close the card by calling the issuer or requesting closure online.
Some people keep the old card open but stop using it, which is a middle ground. This preserves the credit history and available credit without the temptation to spend. Others cut up the card or remove it from their wallet as a psychological barrier to using it again.
Alternatives if a balance transfer is not an option
If your credit score is too low to be approved for a balance transfer card, or if the promotional rates available do not make financial sense for your situation, other options exist. A personal loan from a bank or credit union can consolidate credit card debt at a fixed interest rate, though you will need decent credit to may have access to for a good rate. A debt management plan through a nonprofit credit counselor can negotiate lower interest rates with your creditors without requiring a new card or loan.
If you have significant equity in a home, a home equity line of credit or cash-out refinance can provide lower interest rates than credit cards, but this puts your home at risk if you cannot repay. For people with very low credit scores, the only realistic option may be to pay down debt as aggressively as possible on the cards you have, then revisit a balance transfer once your score improves.
Frequently Asked Questions
Can I transfer a balance if I have bad credit?
Most balance transfer cards require a credit score of at least 670. If your score is lower, you will likely be denied. Some issuers offer cards for people with fair credit, but these rarely include promotional rates or have very short promotional periods. Check your credit score before applying to avoid unnecessary hard inquiries.
What if the balance transfer does not go through?
If the transfer fails, the money is not sent to your old card and your new card balance remains zero. Common reasons for failure include the new card's credit limit being too low, the old card being closed, or incorrect account information. Contact the new card issuer to find out why the transfer did not complete and whether you can try again.
Do I have to use the new card for anything else?
No. You can transfer a balance and never use the card for new purchases. However, new purchases usually have a different (higher) interest rate than the transferred balance, so it makes sense to keep the card for the balance only and use a different card for everyday spending.
What happens if I miss a payment during the promotional period?
Missing a payment can end the promotional rate immediately, even if you are only one day late. The regular interest rate then applies to your entire balance. For this reason, set up automatic payments or calendar reminders to ensure you pay at least the minimum by the due date each month.
Can I transfer a balance multiple times to different cards?
Yes, you can transfer a balance from one card to another, then later transfer the remaining balance to a third card. However, each transfer involves a fee and a hard inquiry, and each new card has its own promotional period. This strategy only makes sense if you have a clear plan to pay down the debt and the math shows you will save money overall.