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What Is a Balance Transfer? Should I Do One?
What Is a Balance Transfer, and Should I Do One?
A balance transfer can save you money by moving your debt from a high-interest credit card to one with a lower APR. Learn how they work, and find a card that fits your needs.Many or all of the products on this page are from partners who compensate us when you click to or take an action on their website, but this does not influence our evaluations or ratings. Our opinions are our own.
Updated · 6 min read Written by Managing Editor + more + more Edited by Managing Editor Co-written by Director of Content SOME CARD INFO MAY BE OUTDATEDThis page includes information about these cards, currently unavailable on NerdWallet. The information has been collected by NerdWallet and has not been provided or reviewed by the card issuer.
What is a balance transfer?
A balance transfer is a transaction in which you move debt from a high-interest credit card to a card with a lower interest rate, ideally one with a 0% introductory APR. Properly executed, a balance transfer makes it easier to pay off debt: For the duration of the 0% period, no interest is being charged on the balance, so every dollar you pay goes toward erasing the debt itself. ↑ Back to top || Find a balance transfer credit card ||Who should do a balance transfer?
A balance transfer is ideal for someone who is struggling to make progress on their credit card debt because interest eats up so much of their monthly payment. When, say, $80 of your $100 payment is going just to pay the past month's interest, it's hard to make a meaningful dent in the underlying balance. In such cases, cardholders can find themselves treading water. After doing a balance transfer, your entire payment can go toward paying down the debt, meaning you can get to zero faster while also saving hundreds or even thousands of dollars in interest. That said, you don't have to be struggling to benefit from a balance transfer. Carrying debt on a credit card is usually expensive, even if you're making your payments every month without fail. If a balance transfer saves you money in the long run, it's a good move. struggling Balance transfers are best for debt that would otherwise take several months (or more) to pay off. If you'd only need a couple of months to pay off your balance even without a transfer, you'll probably be better off leaving it on the current card. That's because balance transfers incur a balance transfer fee of 3% to 5% of the amount you transfer (more on that later). The interest you save on a short-duration transfer might actually be less than the transfer fee. In some cases, a balance transfer can be an emergency measure to "park" debt at 0% temporarily after a job loss, family financial crisis or other hardship. This isn't ideal, of course. It's always preferable to have a plan to get out of debt, but sometimes that plan has to involve pushing repayment down the road until your finances are more stable. Nerdy PerspectiveWhere can people run into trouble with a balance transfer?
writer, credit cards
"With a balance transfer, you have to do the math to make sure that balance transfer fee is worth it. If it saves you money compared with the interest you’d to pay with your current credit card over time, it can be a useful tool for paying down debt aggressively. Have a strategy in place when using a balance transfer credit card. Curb any habits that may have led to the debt, build an emergency fund to prevent further debt and switch your payment method to debit or cash to make more progress on paying off the balance." "With a balance transfer, you have to do the math to make sure that balance transfer fee is worth it. If it saves you money compared with the interest you’d to pay with your current credit card over time, it can be a useful tool for paying down debt aggressively. Have a strategy in place when using a balance transfer credit card. Curb any habits that may have led to the debt, build an emergency fund to prevent further debt and switch your payment method to debit or cash to make more progress on paying off the balance."writer, credit cards
writer, credit cards
"Balance transfer credit cards can be good debt management tools because they can save you money on interest payments. But you'll still need to be hands on with your debt and have a repayment plan. A late payment can cause you to lose your introductory 0% APR period and result in a penalty APR that’s higher than the card’s regular rate — which can leave you in a worse financial shape than when you started." "Balance transfer credit cards can be good debt management tools because they can save you money on interest payments. But you'll still need to be hands on with your debt and have a repayment plan. A late payment can cause you to lose your introductory 0% APR period and result in a penalty APR that’s higher than the card’s regular rate — which can leave you in a worse financial shape than when you started."writer, credit cards
content director, credit cards and travel rewards
"Many people hoping to do a balance transfer end up surprised and disappointed when they don't get enough of a credit limit to transfer all the debt they need to move. You might have $20,000 in debt you hope to transfer but only get approved to transfer $3,000." "Many people hoping to do a balance transfer end up surprised and disappointed when they don't get enough of a credit limit to transfer all the debt they need to move. You might have $20,000 in debt you hope to transfer but only get approved to transfer $3,000."content director, credit cards and travel rewards
writer, credit cards
"With a balance transfer, you have to do the math to make sure that balance transfer fee is worth it. If it saves you money compared with the interest you’d to pay with your current credit card over time, it can be a useful tool for paying down debt aggressively. Have a strategy in place when using a balance transfer credit card. Curb any habits that may have led to the debt, build an emergency fund to prevent further debt and switch your payment method to debit or cash to make more progress on paying off the balance." "With a balance transfer, you have to do the math to make sure that balance transfer fee is worth it. If it saves you money compared with the interest you’d to pay with your current credit card over time, it can be a useful tool for paying down debt aggressively. Have a strategy in place when using a balance transfer credit card. Curb any habits that may have led to the debt, build an emergency fund to prevent further debt and switch your payment method to debit or cash to make more progress on paying off the balance."writer, credit cards
writer, credit cards
"Balance transfer credit cards can be good debt management tools because they can save you money on interest payments. But you'll still need to be hands on with your debt and have a repayment plan. A late payment can cause you to lose your introductory 0% APR period and result in a penalty APR that’s higher than the card’s regular rate — which can leave you in a worse financial shape than when you started." "Balance transfer credit cards can be good debt management tools because they can save you money on interest payments. But you'll still need to be hands on with your debt and have a repayment plan. A late payment can cause you to lose your introductory 0% APR period and result in a penalty APR that’s higher than the card’s regular rate — which can leave you in a worse financial shape than when you started."writer, credit cards
content director, credit cards and travel rewards
"Many people hoping to do a balance transfer end up surprised and disappointed when they don't get enough of a credit limit to transfer all the debt they need to move. You might have $20,000 in debt you hope to transfer but only get approved to transfer $3,000." "Many people hoping to do a balance transfer end up surprised and disappointed when they don't get enough of a credit limit to transfer all the debt they need to move. You might have $20,000 in debt you hope to transfer but only get approved to transfer $3,000."content director, credit cards and travel rewards
writer, credit cards
"With a balance transfer, you have to do the math to make sure that balance transfer fee is worth it. If it saves you money compared with the interest you’d to pay with your current credit card over time, it can be a useful tool for paying down debt aggressively. Have a strategy in place when using a balance transfer credit card. Curb any habits that may have led to the debt, build an emergency fund to prevent further debt and switch your payment method to debit or cash to make more progress on paying off the balance." "With a balance transfer, you have to do the math to make sure that balance transfer fee is worth it. If it saves you money compared with the interest you’d to pay with your current credit card over time, it can be a useful tool for paying down debt aggressively. Have a strategy in place when using a balance transfer credit card. Curb any habits that may have led to the debt, build an emergency fund to prevent further debt and switch your payment method to debit or cash to make more progress on paying off the balance."writer, credit cards
writer, credit cards
"Balance transfer credit cards can be good debt management tools because they can save you money on interest payments. But you'll still need to be hands on with your debt and have a repayment plan. A late payment can cause you to lose your introductory 0% APR period and result in a penalty APR that’s higher than the card’s regular rate — which can leave you in a worse financial shape than when you started." "Balance transfer credit cards can be good debt management tools because they can save you money on interest payments. But you'll still need to be hands on with your debt and have a repayment plan. A late payment can cause you to lose your introductory 0% APR period and result in a penalty APR that’s higher than the card’s regular rate — which can leave you in a worse financial shape than when you started."writer, credit cards
content director, credit cards and travel rewards
"Many people hoping to do a balance transfer end up surprised and disappointed when they don't get enough of a credit limit to transfer all the debt they need to move. You might have $20,000 in debt you hope to transfer but only get approved to transfer $3,000." "Many people hoping to do a balance transfer end up surprised and disappointed when they don't get enough of a credit limit to transfer all the debt they need to move. You might have $20,000 in debt you hope to transfer but only get approved to transfer $3,000."content director, credit cards and travel rewards
↑ Back to top || Find a balance transfer credit card || 18 Months of 0% to Whittle Down Debt ? Start saving money ASAP. This card offers an extra long pause on interest on balance transfers. See the CardWho CAN do a balance transfer?
Just because you want or even need to do a balance transfer doesn't necessarily mean you'll be able to. Balance transfers are risky for credit card issuers — they're taking on existing debt from someone who might already be struggling to repay it. So balance transfer offers are typically available only to consumers with good to excellent credit. That typically means a credit score of 690 or better. Keep in mind, though, that credit scores alone don't guarantee approval for any card. Issuers take other factors into account, including your income, overall debt levels and other credit activity. want need able Card issuers will occasionally offer you a balance transfer promotion on a card you're already carrying, so you don't have to apply for a new card. Your card company might also send a balance transfer "convenience check" you can use to pay off other debt. Before you use one of these checks, be absolutely sure that the debt will move over at 0% rather than the card's regular interest rate. Also, there's no guarantee that the issuer of your chosen 0% card will allow you to transfer all the debt you want to move. You might have $15,000 in debt you want to transfer, but the card company might only approve you for a $4,000 transfer limit. Of note: You generally can't transfer balances between cards from the same issuer. If you have debt on a Wells Fargo card, for example, you couldn't transfer it to the Wells Fargo Reflect® Card. Debt on a Citi card couldn't be moved to the Citi Simplicity® Card, and so on. Wells Fargo Reflect® Card Citi Simplicity® Card » MORE: Balance transfers: Benefits, drawbacks and alternatives » MORE: ↑ Back to top || Find a balance transfer credit card ||How to do a balance transfer
While the exact process for balance transfers can vary widely from one card company to another and even one card to another, here are the steps you generally have to take when working with major issuers: 1. Apply for a card with a 0% introductory APR on balance transfers or use an offer on a card you already have. Remember: To qualify for 0% balance transfer offers, you generally need to have good or excellent credit, and same-issuer transfers generally aren’t allowed. During the application process, you may be asked right off the bat whether you want to transfer a balance, and you might be able to start the process right then. 1. Apply for a card 2. Initiate the balance transfer. Look for a balance transfer option in your card account online, or in the issuer's app, or call the customer service number on the back of your card. Whether you’re doing this online or by phone, you’ll need to provide information about the debt you’re looking to move, such as the card issuer name, the amount of the debt and the account number. 2. Initiate the balance transfer. 3. Wait for the transfer to go through. Once the balance transfer is approved, which could take two weeks or longer, the issuer will generally pay off your old account directly. The old balance — plus the balance transfer fee — will show up in the account on your new card. 3. Wait for the transfer to go through. 4. Pay down the balance. When that balance is added to the new card, you’ll be responsible for making monthly payments on that account. And if you pay it down during the introductory 0% APR period, for example, you could potentially save a bundle. 4. Pay down the balance. ? Nerdy Tip Credit card debt isn't the only type of debt you can transfer. Many issuers also allow cardholders to move other types of debt — such as auto loans or personal loans — to a credit card. ↑ Back to top || Find a balance transfer credit card ||How much can you save with a balance transfer?
No one can say exactly how much money you would save with a balance transfer, because that is determined by several factors: exactly How much debt you're starting with. The interest rate on the card where that debt currently sits. The balance transfer fee on the card you're moving the debt to. Whether you will be able to pay the debt in full before the 0% period ends. Even so, our balance transfer calculator can give you a general sense of what you could pay if you didn't do the transfer, compared with what the transfer would cost. ↑ Back to top || Find a balance transfer credit card ||How to choose a balance transfer card
Since the ultimate purpose of a balance transfer is to save money, you want to choose a card that minimizes your costs as much as possible. The "perfect" balance transfer credit card comes with three big zeroes: A 0% introductory APR offer for balance transfers. A $0 annual fee. A $0 balance transfer fee (or a way to avoid paying such a fee). With a "triple-zero" card, you could potentially pay off your debt without spending a penny on interest and fees. But cards without balance transfer fees are rare nowadays. They're generally available only from smaller banks and credit unions, and many cards with a $0 transfer fee don't actually have a 0% APR period; they might instead have a lower promotional rate for transfers, like 2.99%. But cards without balance transfer fees are rare nowadays So in most cases, you're likely to find only two out of the three zeroes. Still, a card with a $0 annual fee and a long 0% introductory APR period on balance transfers is quite valuable. Interest charges add up quickly and can be far more costly than a one-time 3% to 5% fee. One point of differentiation among balance transfer credit cards is the length of their introductory 0% APR period. Some cards have 0% periods of 18 months or more. If you're looking for the longest possible 0% period, you're likely to find it on a so-called dedicated balance transfer card. These cards give you a lot of time at 0%, but they might not offer much else — no rewards, bonuses or perks, and their ongoing interest rates after the 0% period are nothing special. longest possible 0% period If you don't need a super-long 0% APR period, you can find a wide array of cards that offer a shorter 0% period for balance transfers — 12 to 15 months — and that also offer generous rewards. These cards have greater long-term value, since you have a reason to use them after the 0% period runs out. (Just don't use them to charge more than you can afford to pay in full every month, or you can end up right back in the debt cycle.) need ↑ Back to top || Find a balance transfer credit card ||Popular balance transfer cards
Options with an especially long introductory APR period for balance transfers include the following: Options with an especially long introductory APR period U.S. Bank Shield™ Visa® Card Apply now Apply nowon U.S. Bank's website
Wells Fargo Reflect® Card Apply now Apply nowon Wells Fargo's website
Discover it® Chrome Apply now Apply nowon Discover's website
Balance transfer details
APR: 0% intro APR for 21 billing cycles on purchases and balance transfers, and then the ongoing APR of 16.99%-27.99% Variable APR. APR: 0% intro APR for 21 billing cycles on purchases and balance transfers, and then the ongoing APR of 16.99%-27.99% Variable APR Balance transfer fee: Either 5% of the amount of each transfer or $5 minimum, whichever is greater. (This fee may be different if you apply directly via U.S. Bank.) Balance transfer fee: Either 5% of the amount of each transfer or $5 minimum, whichever is greater. APR: 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 17.49%, 23.99%, or 28.24% Variable APR. APR: 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 17.49%, 23.99%, or 28.24% Variable APR Balance transfer fee: 5% of the amount transferred ($5 minimum). Balance transfer fee: APR: 0% intro APR on Purchases for 6 months and 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 17.49%-26.49% Variable APR. APR: 0% intro APR on Purchases for 6 months and 0% intro APR on Balance Transfers for 18 months, and then the ongoing APR of 17.49%-26.49% Variable APR Balance transfer fee: 3% intro balance transfer fee; up to 5% fee on future balance transfers (see terms). Balance transfer fee:Learn more
Read review Read review Read review » SEE MORE OPTIONS: Best balance transfer credit cards » SEE MORE OPTIONS: If you won't need a super-long time to pay down your transferred balance, you can get 0% intro APR periods of 12 to 15 months on a number of excellent cash back credit cards. The advantage with these cards is that their rewards give them ongoing value long after the interest-free promotion ends. Among popular cards with both a balance transfer offer and ongoing rewards: If you won't need a super-long time to pay down your transferred balance, Citi Double Cash® Card Apply now Apply nowon Citibank's application
Chase Freedom Unlimited® Apply now Apply nowon Chase's website
Bank of America® Customized Cash Rewards credit card Apply now Apply nowon Bank of America's website
Wells Fargo Active Cash® Card Apply now Apply nowon Wells Fargo's website
Balance transfer details
APR: 0% intro APR on balance transfers for 18 months, and then the ongoing APR of 17.49%-27.49% Variable APR. APR: 0% intro APR on balance transfers for 18 months, and then the ongoing APR of 17.49%-27.49% Variable APR Balance transfer fee: 3% (minimum $5) for transfers completed within the first four months of account opening; after that, 5% (minimum $5). Balance transfer fee: APR: 0% intro APR on purchases and Balance Transfers for 15 months, and then the ongoing APR of 18.24%-27.74% Variable APR. APR: 0% intro APR on purchases and Balance Transfers for 15 months, and then the ongoing APR of 18.24%-27.74% Variable APR Balance transfer fee: 3% (minimum $5) in the first 60 days; 5% (minimum $5) after that. Balance transfer fee: APR: 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 Variable APR that’s currently 17.49%-27.49% will apply. APR: 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 Variable APR that’s currently 17.49%-27.49% will apply Balance transfer fee: 3% for 60 days from account opening, then 5% Balance transfer fee: 3% for 60 days from account opening, then 5% APR: 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 18.49%, 24.49%, or 28.49% Variable APR. A balance transfer request must be made within 120 days from account opening to qualify for the introductory APR. APR: 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers, and then the ongoing APR of 18.49%, 24.49%, or 28.49% Variable APR Balance transfer fee: 3% (minimum $5) for 120 days from account opening. After that, up to 5% (minimum $5). Balance transfer fee:Rewards
Unlimited 2% cash back on purchases — 1% when you buy something and 1% when you pay your bill. Up to 5% cash back in specific categories; 1.5% cash back outside those categories. Up to 3% cash back on purchases. Unlimited 2% cash back on purchases.Learn more
Read review Read review Read review Read review » MORE: How to choose a balance transfer credit card » MORE: ↑ Back to top || Find a balance transfer credit card ||Is a balance transfer right for me?
If you'd be able to pay off your credit card balance in three months or less, you might be better off doing so rather than seeking a balance transfer, since the transfer fee might be greater than the interest you'd pay. If you can't qualify for a good 0% APR offer, paying off your debt as quickly as possible might be the best option. A personal loan could also be a good match; you can pre-qualify for one to see how much you could borrow and what interest rate you could get before accepting an offer. But in general, a balance transfer is the most valuable choice if you need months to pay off high-interest debt and have good enough credit to qualify for a card with a 0% introductory APR on balance transfers. Such a card could save you plenty on interest, giving you an edge when paying off your balances. » MORE: When should you pay a balance transfer fee? » MORE: ↑ Back to top || Find a balance transfer credit card ||What's next?
What's next? Check out NerdWallet’s best balance transfer cards. Will a balance transfer hurt my credit score? 3 simple steps to choose a balance transfer credit card. Calculate how much you'll save with a balance transfer. About the authors Claire Tsosie Claire Tsosie is a managing editor for NerdWallet's travel team. Her work has been featured by Forbes, USA Today and The Associated Press. See full bio. Paul Soucy Paul has been the lead editor for NerdWallet's credit cards team since 2015 and for the travel rewards team since 2023. Previously, he worked at USA Today and the Des Moines Register, then built a freelance writing and editing business focused on personal finance topics. He has a bachelor's degree in journalism and an MBA. See full bio. Helpful resources Best Cash Back Credit Cards Best Travel Credit Cards Best Balance Transfer Credit CardsFind the right credit card for you.
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