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Fact Checked
Eric McWhinnie
If you have credit card debt, a balance transfer can help you pay it off more quickly while saving money on interest charges. With this option, you transfer debt from one credit card to another one with a lower interest rate, often a 0% APR during an introductory period. Our step-by-step guide shows you how to do a balance transfer.
1. See if a balance transfer fits your situation
It's important to pick the right method to pay off debt. Here's what to consider to figure out if a credit card balance transfer is best for you.
Your credit score
Most balance transfer credit cards are intended for people with good credit, which means a FICO® Score of 670 or higher. There can be a little wiggle room, but if your credit score is much lower, you may have a hard time qualifying for a balance transfer card.
Check your credit score online before applying for a balance transfer card. Several companies offer free credit score services, and Experian offers a free FICO® Score service. If necessary, work on raising your credit score for a better chance of approval.
LEARN MORE: How to Increase Your Credit Score
The amount of debt
When you get a balance transfer card, the credit limit determines how much debt you can transfer. If your card has a $10,000 credit limit, the balances you transfer plus any balance transfer fees can't exceed $10,000.
Although your credit limit depends on your income and credit history, card issuers usually don't start cardholders out with more than $10,000 to $15,000. If you have more debt than that, you can still get a balance transfer card -- just keep in mind that you might only be able to transfer a portion of your debt.
See our guide on the best high limit credit cards.
Your payment habits
Because of how a balance transfer works, it's best if you pay as much as you can toward your debt. But since it's a credit card, there's no set timeframe to pay off your balance, and you can make fairly small minimum payments. People who don't consistently pay more than the minimum often stay in debt longer.
If you think a more structured repayment method would be better for you, look into debt consolidation loans. These have a set term and a fixed payment amount, which can help you stay on track.
2. Calculate how long it will take to pay off your credit card debt
Balance transfer credit cards usually offer a 0% APR for an intro period. That intro period varies. Some offer no credit card interest on balance transfers for 12 months, others for 15 months, and some cards offer it for 18 months or longer.
To know how long an intro period you should look for, calculate the time it will take to pay off your credit card debt. Here's how:
- Figure out the amount you have to pay. Add up all your credit card balances. Then add 3% to the total, because that's a standard balance transfer fee.
- Determine your monthly debt payment. You may need to review your budget to see how much you can afford.
- Divide the total amount by your monthly debt payment. This shows you how many months it will take to pay off everything.
Let's say you have $5,000 in credit card balances and you can pay $350 per month. If you transfer those balances to a card with a 3% balance transfer fee, the total amount is $5,150. Divided by $350, that $5,150 balance takes a little under 15 months to pay off. In that scenario, you need a balance transfer card with a 0% intro APR of 15 months or longer.
If you find that you can pay off your debt in six months or fewer, a balance transfer may not be the best option. Use a credit card interest calculator to see how much it'd cost in interest to pay off your debt on your current credit cards. If the interest is less than the balance transfer fee, there's no reason to do a balance transfer.
3. Compare balance transfer credit cards
Look up top balance transfer credit cards, see what they have to offer, and pick the one you like the most. To make this easier, use a credit card comparison tool.
The feature to prioritize is the length of the balance transfer offer. Ideally, it should be long enough that you can pay off your debt in full. This may not be possible for everyone. If your timeline is 30 months, you're unlikely to find a card with a balance transfer offer that long. In that case, go with the card that gives you the most time with a 0% balance transfer APR.
You may find that multiple credit cards have a long-enough balance transfer offer, especially if your payment timeline is 12 to 18 months. In that case, weigh other features -- such as cash back or sign-up bonuses -- to help you decide on a card.
To get started, here are a few great balance transfer credit cards you can compare to get a feel for what they offer.
As of Apr. 16, 2024
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| Wells Fargo Reflect® Card | Discover it® Balance Transfer | Citi® Diamond Preferred® Card |
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Rating image, 4.50 out of 5 stars.
4.50/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 5.00 out of 5 stars.
5.00/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.25 out of 5 stars.
4.25/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
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Credit Rating Requirement:
Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Good/Excellent (670-850)
Good/Excellent (670-850) |
Credit Rating Requirement:
Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Good/Excellent (670-850)
Good/Excellent (670-850) |
Credit Rating Requirement:
Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Good/Excellent (670-850)
Good/Excellent (670-850) |
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Welcome Offer: — |
Welcome Offer: N/A Discover will match all the cash back you’ve earned at the end of your first year. |
Welcome Offer: — |
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Rewards Program: N/A |
Rewards Program: Earn 5% cash back on everyday purchases at different places you shop each quarter like grocery stores, restaurants, gas stations, and more, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases—automatically. 1%-5% cash back |
Rewards Program: N/A |
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Intro APR: 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers Purchases: 0% intro APR, 21 months from account opening Balance Transfers: 0% intro APR, 21 months from account opening on qualifying balance transfers |
Intro APR: Purchases: 0%, 6 months Balance Transfers: 0%, 18 months |
Intro APR: Purchases: 0%, 12 months Balance Transfers: 0%, 21 months |
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Regular APR: 18.24%, 24.74%, or 29.99% Variable APR |
Regular APR: 17.24% - 28.24% Variable APR |
Regular APR: 18.24% - 28.99% (Variable) |
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Annual Fee: N/A $0 |
Annual Fee: $0 |
Annual Fee: $0 |
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4. Apply for a balance transfer card
Once you've chosen a credit card, apply. Fill out the online application with the required information. Although this varies depending on the credit card issuer, they all tend to ask for similar things:
- Full name
- Home address
- Social Security number
- Date of birth
- Phone number
- Email address
- Annual income
- Monthly mortgage or rent payment
Have this information ready so that you can complete the application easily. Some card issuers also ask about balances you plan to transfer. That's not required, though.
After you submit the balance transfer credit card application, the card issuer may approve it right away. It could also put the application under review. This is normal, and you should get an update in a few business days.
If your application is denied, you have a couple of options. You can call the card issuer's reconsideration line and ask them to overturn the denial. Or, you can apply for a different balance transfer card.
5. Transfer your credit card balances
After you have your balance transfer credit card, transfer your balances as soon as possible to take advantage of consolidating debt with a low introductory interest rate.
Credit card companies typically let you transfer balances online or over the phone at the number on the back of your card. For each balance transfer, you need the credit card number of the card with the balance, and the amount you want to transfer.
The balance transfer process generally takes anywhere from seven to 21 days, and until the process is complete, you should continue making payments on old cards. Contact each card issuer after the balance transfer to verify that the old card's balance is $0.
Now that you know the process behind transferring your credit card balance, check out our balance transfer calculator to see if transferring your balance makes sense.
That covers the full process of how to do a balance transfer. Once you're done, all that's left is to make payments every month on your balance transfer credit card.
Still have questions?
Some other questions we've answered:
FAQs
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A balance transfer is a good idea when you have high-interest credit card debt and a good credit score. By getting a balance transfer card with a 0% intro APR, you can avoid interest charges and get rid of debt more quickly.
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You can transfer multiple balances to one balance transfer card. The only restriction on how much you can transfer is the balance transfer card's available credit.
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The available credit on the balance transfer card determines how much you can transfer. A card's available credit is the credit limit minus any unpaid transactions. If you haven't used the card yet, then you can transfer balances up to its credit limit.
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You can use both credit cards (the balance transfer card and the card that originally had the balance) after a balance transfer. However, it's best to be careful with your spending so that you can pay off your credit card debt and not add to it.
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A balance transfer can impact three factors that help determine your credit score:
- Credit utilization ratio: Your credit card balances divided by your credit limits. Because opening a balance transfer card adds to your credit limits, it can have a positive impact here, and this is a large factor in your credit score.
- Age of account history: The age of your credit card accounts, including the average, oldest, and newest account ages. A new credit card can have a negative impact here, but this is a small part of your credit score.
- New account inquiries: Your recent credit applications. An application for a credit card can have a negative impact, but this is also a small part of your credit score.
Overall, it's unlikely that a balance transfer card will bring down your credit score much, and it could have a positive effect.
Our Credit Cards Experts
Lyle Daly is a personal finance writer who specializes in credit cards, travel rewards programs, and banking. He writes for The Ascent and The Motley Fool, and his work has appeared in USA Today and Yahoo! Finance. He was born in California but currently lives as a digital nomad with a home base in Colombia.
Fact Checked
Eric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
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