A balance transfer moves credit card debt to a new card, usually with a 0% APR promo period. It can save real money when the transfer fee is lower than the interest you avoid. It can also backfire fast if you miss a payment, keep spending, or fail to clear the balance before the promo ends.
How 0% APR promo periods work
Promo periods commonly run 12-21 months. After that, any unpaid balance gets the standard APR.
Balance transfer fees
Fees usually run 3-5% of the transferred balance. If the fee is higher than the interest you avoid, the transfer does not help.
What credit score do you need?
Most good transfer cards require about a 670+ score. The strongest 0% offers often require 700+.
Mistakes to avoid
- Missing a payment and losing the promo rate.
- Adding new purchases to the card.
- Letting the balance survive past the promo window.
Frequently asked questions
What is a good balance transfer APR?
0% for 12-21 months is the usual range for top offers. After the promo period, rates often jump to 19-29% APR. Build the payoff plan before you transfer.
Does a balance transfer affect my credit score?
Opening a new card can cause a small temporary dip from the hard inquiry. Lower utilization on your existing cards can offset that and may improve your score within a few months.
Can I transfer balances between cards at the same bank?
No. Most issuers do not allow transfers within their own card portfolio. You usually need a card from a different bank.
What happens if I miss a payment during the promo period?
Most issuers can cancel the 0% promo rate and apply the standard purchase or penalty APR to the balance. Set autopay for at least the minimum payment.
Methodology note: Fee ranges use CFPB credit card market reporting. APR context uses Federal Reserve G.19 Consumer Credit. Promo terms, approval, limits, and penalties are set by the card issuer; this guide is educational and not credit advice.