Transferring a credit card balance to a new card involves applying for a balance transfer credit card, then requesting the new issuer move your existing debt onto the new account. The whole point is to land a lower interest rate, often 0% APR for a promotional period, so more of your payment goes toward the actual balance. The process takes about a week or two from application to completion, and the steps are straightforward once you know what to expect.
What You Need Before You Start
Gather a few details from your current credit card before you begin shopping for a new one. You need your current balance, your current APR, and your account number. Knowing your APR lets you calculate exactly how much interest you’re paying now, which tells you whether a balance transfer will actually save you money after fees.
You also want to know your credit score. Most 0% APR balance transfer cards require good to excellent credit, generally a score of 690 or higher. Some of the best offers require scores of 720 or above. If your score is below that range, you may still qualify for a card with a reduced (but not zero) promotional rate, or you may want to work on your credit before applying.
How to Choose the Right Card
Three things matter most when comparing balance transfer cards: the promotional APR, how long the promotional period lasts, and the balance transfer fee.
The promotional APR is the temporary interest rate you’ll pay on transferred balances. The best cards offer 0% for anywhere from 12 to 21 months. The longer the window, the more time you have to pay down the balance interest-free. Once the promotional period ends, the card’s regular APR kicks in, and that rate depends on your creditworthiness. If you won’t be able to pay off the full balance before the promo expires, pay close attention to that ongoing rate.
Balance transfer fees typically run 3% to 5% of the amount you transfer. On a $5,000 balance, that’s $150 to $250 added to your new card. A handful of cards charge no transfer fee at all, though they may offer a shorter promotional period in return. Do the math: if you’re paying 22% APR on your current card and transfer $5,000 to a 0% card with a 3% fee, the $150 fee is far less than the roughly $1,100 you’d pay in interest over a year at your old rate.
One restriction catches many people off guard: most issuers won’t let you transfer a balance between two of their own cards. If your current card is from Chase, for example, you can’t transfer that balance to another Chase card. This rule applies to both personal and business cards. You’ll need to apply with a different bank or issuer.
Applying for the New Card
Once you’ve picked a card, apply online. The application asks for standard information: name, address, income, housing costs, and Social Security number. Most issuers give you a decision within minutes, though some applications require additional review that can take a few days.
If you’re approved, pay attention to the credit limit you receive. Many issuers let you transfer up to your full credit limit, but some cap balance transfers at around 75% of your total limit. Certain issuers also impose dollar caps on transfers within a set timeframe. If your existing balance is close to the limit you’re given, the transfer fee can push you over. For instance, if your new card has a $5,000 transfer limit and a 3% fee, the most you can actually transfer is about $4,850, because the fee gets added on top of the transferred amount.
Requesting the Transfer
Some cards let you initiate the balance transfer during the application itself. If not, you can request it after approval through the new issuer’s website or by calling their customer service line. You’ll need to provide your old card’s account number, the issuer name, and the amount you want to transfer.
The new card issuer handles everything from there. They pay off the specified amount on your old card and add that balance (plus the transfer fee) to your new account. You don’t need to contact your old card company to arrange anything on their end.
Processing typically takes 5 to 14 days, though it can occasionally take longer. During this window, keep making at least the minimum payment on your old card. If a payment comes due before the transfer clears, you’re still responsible for it, and a missed payment can trigger a late fee and hurt your credit score.
After the Transfer Goes Through
Once the transfer is complete, verify a few things. Check your old card’s account to confirm the balance was paid down by the correct amount. Then check your new card to make sure the transferred balance and fee match what you expected. If you transferred your entire old balance, it should now show a zero or near-zero balance on the original card.
Don’t close the old card right away. Closing a credit account reduces your total available credit, which can increase your credit utilization ratio and temporarily lower your credit score. Unless the old card charges an annual fee you want to avoid, keeping it open with a zero balance works in your favor.
On your new card, start paying down the transferred balance as aggressively as you can. Divide the total balance by the number of months in your promotional period to figure out what monthly payment will get you to zero before the regular APR kicks in. For a $4,500 balance on a card with an 18-month 0% period, that’s $250 per month.
What Counts as a Balance Transfer
Balance transfers aren’t limited to credit card debt. Many issuers let you transfer balances from store credit cards, lines of credit, and in some cases even certain types of loans. The card’s terms will spell out what qualifies. However, new purchases on the balance transfer card are usually treated separately from transferred balances. They may not fall under the 0% promotional rate and could start accruing interest immediately at the card’s regular purchase APR. If you need to use the card for everyday spending, check whether the promotional rate applies to purchases as well.
Payments you make each month are generally applied to the highest-interest balance first, which is required by federal law. So if your transferred balance is at 0% and a new purchase is at 20%, your payment goes toward the purchase balance first. This works in your favor for paying off the expensive debt, but it means the promotional balance could linger longer than you planned if you’re also charging new purchases to the card. The simplest approach: use the balance transfer card only for the transferred debt, and pay for new purchases with a different card or cash.