How to Transfer a Credit Card Balance

Transferring a balance from one credit card to another can help you save hundreds (or thousands) of dollars on interest, pay down debt faster or both. But first, you'll need to pick from the best balance transfer credit card offers that come with 0% APR for a limited time. Learn how to look for a balance transfer credit card, how to transfer a balance and some rules of thumb to keep in mind before, during and after the process.

If you want a breakdown of current APR terms, fees, and credit limits, compare top balance transfer cards in one place.

The first step to transfer a credit card balance is making sure you have the right card. You can do this by searching for the best balance transfer cards and picking one that makes sense for your goals.

Financial advisor Domenick D'Andrea of DanDarah Wealth Management says you'll want to go with a card that has a 0% APR rate for as long as you need to pay down debt. If you have a considerable amount of debt, picking a card with the longest intro APR offer you can find (up to 21 months) may make the most sense. If you have a smaller amount of debt you can pay off in 15 months or less, you'll have more balance transfer card options to choose from.

D'Andrea also says to look out for balance transfer fees and factor them into the equation. The cards in this niche charge balance transfer fees as low as 3%; however, you'll also find cards that charge fees as high as 5%.

Also look for fine print that applies to new balance transfer credit cards. Some offer intro 0% APR rates that only apply if you transfer a balance within a few months of account opening, or they might have an introductory balance transfer fee that only lasts a few months.

Finally, compare balance transfer cards based on their annual fees and cardholder benefits. The best offers tend to come with a $0 annual fee, and some have perks like purchase protection and extended warranties. There are also balance transfer cards that earn rewards for spending, but these offers should be pursued with caution if your main goal is getting out of debt.

Next, you'll request the balance transfer with the new balance transfer credit card. You can typically do this online, and potentially even when you apply for the card. You can also call your card issuer using the number on the back of your card to request the transfer.

Details required to complete a balance transfer include:

• Name and address of the credit card issuer holding debt you want to transfer

• Account number for the card you want to transfer debt from

• Debt amount you want to transfer

Supplying this information to your new balance transfer card issuer can get the transfer underway.

Balance transfer timing can vary dramatically, with some transfers taking place in days and others taking several weeks. Your new and old accounts will be in a state of limbo while you wait, but you'll still need to make minimum payments on your old account while you wait for the balance to transfer.

Since you may not get a notification when your old debt moves to your new card, you should check both accounts regularly for progress.

Keep making payments on your old credit card until your full balance has transferred and you confirm the balance is $0. Once your old card balance has been zeroed out, you can close the old card or keep it open. The choice is yours.

Once your old debt has transferred to your new balance transfer credit card, you'll begin the repayment owing more than when you started. This is due to the balance transfer fee being added to your new account. If you transferred $5,000 in debt to your new card and paid a balance transfer fee of 3%, you would begin the repayment owing $5,150.

At this point, you should strive to pay as much as you can toward the debt during the 0% APR period. The card's regular variable APR will kick in once the intro period ends, and the average credit card rate is still well over 20% according to the Federal Reserve.

You could always transfer the balance again in the future, but balance transfer fees can prove to be expensive over time. Your best bet is paying off as much debt as possible while you have 0% APR since every dollar you pay goes directly toward the principal you owe. If you still have debt after the introductory interest rate period is over, work on paying it down as quickly as you can.

Balance transfer example

Can't decide if a balance transfer is worth it? The following example shows how a balance transfer could work and lead to considerable savings over the course of 21 months.

Imagine someone has $7,500 in credit card debt on a card with a 23.99% APR, and that they're currently paying $400 per month toward their balance. At this rate, it would take them 24 months to become debt-free and they would pay $1,992.63 in interest over that time.

Let's say this person signs up for the Wells Fargo Reflect® card to get this intro APR offer — 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.49%, 23.99%, or 28.24% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5. If they transferred their old balance to the card, their new balance would equal around $7,875 with the balance transfer fee included. However, they could pay around $375 per month toward their debt to become entirely debt-free over the intro offer period.

This means that, after accounting for the cost of the balance transfer fee, their interest savings from a balance transfer credit card works out to $1,617.63.

Before you move debt from one card to another, you should think long and hard about what you're trying to accomplish. After all, balance transfers move debt around in a "shell game" fashion, but they do not actually pay it off. Only you can do that.

According to debt and credit expert Gwyneth Borden of Remynt, balance transfers make the most sense for people who pay off the debt within the introductory offer period. As an example, someone who has $4,000 in debt to transfer to a card with 0% APR for 21 months would need to pay just under $200 per month to become debt-free during that timeline.

However, Borden says balance transfers can still make sense if you cannot quite become debt-free while you have 0% APR.

Before you search for the best credit card to transfer a balance, you will also want to know about the various rules that govern the process. Consider the following tips and fine print details.

Choose a different bank

First off, you should know that most credit card companies don't allow transfers between their card products. If your current credit card debt is on a Capital One card, for example, you'll need to pick a balance transfer card from another issuer. The same is true if you have debt with American Express, Chase and other major credit card companies.

This can be a pain if you have debt with an issuer that offers the new balance transfer card you want the most. Since many of the best balance transfer offers are similar, you should be able to find a card that offers 0% APR for the length of time you need plus any other benefits you want.

Limitations can apply

It helps to be aware that various rules can limit how much debt you can transfer to different cards. For example, balance transfers with Chase made online or over the phone cannot exceed $15,000 within any 30-day period. Some Amex cards limit transfers based on your approved credit limit — check your card's terms for the exact cap. A minimum balance transfer amount of $50 can also apply.

Depending on the credit limit you qualify for on your new balance transfer credit card, you could also find yourself in a situation where you cannot transfer your full debt. If you have a $10,000 balance on your old credit card but your new balance transfer card gives you a $7,000 credit limit, for example, you would only be able to transfer the maximum your new card issuer allows. In that scenario, you would have to make payments on your old card and your new balance transfer card at the same time.

Stop paying with plastic

This rule isn't necessarily hard and fast, but you'll want to follow it if you want to get out of debt and stay out. Borden says that, once you complete a balance transfer, you should limit the use of your old credit card.

"Use it for charges you'll pay in full each month," Borden emphasizes. "You won't be much better off if you begin accruing debt on the old card."

You can also just stop using credit for purchases completely and focus your energy on debt repayment instead. This move will ensure you aren't racking up new debts you can't afford to pay off, and it can get you in the habit of paying with cash or debit instead.

Can you transfer a balance between two cards from the same bank?
No. Most credit card issuers don't allow balance transfers between their own card products. If your debt is with Capital One, Chase or American Express, for example, you'll need to move it to a card from a different issuer. Since many balance transfer offers are similar across issuers, you should still be able to find a 0% APR card with the terms you need.

How long does a balance transfer take to process?
It varies. Some transfers complete in a matter of days, while others take several weeks. During that time, keep making minimum payments on your old card — you likely won't get a notification once the transfer clears, so check both accounts regularly until your old balance reads $0.

Is there a limit to how much you can transfer?
Yes, and the limit depends on your issuer and credit line. Chase caps online or phone transfers at $15,000 within any 30-day period. American Express limits some cards to $10,000 or 70% of your approved credit limit, whichever is lower. A $50 minimum can also apply. If your new card's credit limit is lower than your existing debt, you'll only be able to transfer part of the balance.

Should you close your old credit card after the balance transfers?
That's your choice. Once your old card's balance is confirmed at $0, you can close it or keep it open. Just be careful about continuing to use it — charge only what you can pay off in full each month, since running up new debt on the old card undoes the progress you just made.

What is a balance transfer fee, and how much does it cost?
It's a fee charged for moving debt to your new card, typically 3% to 5% of the transferred amount. It gets added to your new balance immediately. For example, transferring $5,000 at a 3% fee means you start repayment owing $5,150, not $5,000 — so it's worth factoring into how much you'll actually save.

What happens if you don't pay off your balance before the intro APR ends?
Once the introductory period ends, the card's regular variable APR kicks in — and the average credit card rate is still well over 20%, according to the Federal Reserve. Any remaining balance starts accruing interest at that rate, so the goal is to pay down as much as possible while the 0% window lasts.

Can you do a balance transfer more than once?
Yes, you can transfer a balance again in the future, but repeated transfer fees add up and can erode your savings over time. It's usually better to pay off as much debt as possible during your current 0% APR period rather than planning on transferring again later.

Where we got our information

• Interviews with Domenick D'Andrea, financial advisor, DanDarah Wealth Management and Gwyneth Borden, debt and credit expert, Remynt — quote sourced via LinkedIn

• Federal Reserve — average credit card interest rate data

• Chase and American Express issuer disclosure pages