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Balance Transfer Credit Cards

Cards that let you move debt from another card, often with a low or 0% introductory APR for a set period.

A balance transfer credit card is a type of card that allows you to move existing debt from another credit card to this new card, typically with a lower introductory interest rate for a limited time period. These cards are generally used by people who carry a balance on their current cards and want to reduce the interest they're paying while they work on paying down that debt. The introductory rate period eventually ends and a regular interest rate applies, so the strategy works best when someone has a plan to pay off the transferred balance during the promotional window. Terms, rates, and eligibility requirements vary significantly between card issuers, so it's important to review and compare offers from multiple companies before applying.

Who it's for

People with existing credit card debt who want time to pay it down with less or no interest during an introductory period, and who can realistically pay off the balance before that period ends. Approval and terms depend on your credit.

How it works

You move (transfer) a balance from one card to a balance transfer card, which may offer a low or 0% introductory APR for a set number of months. Most charge a balance transfer fee (a percentage of the amount moved). After the intro period ends, the regular APR applies to any remaining balance. The goal is to pay down principal faster while interest is reduced.

What to compare

Compare the length of the intro period, the balance transfer fee, and the regular APR that kicks in afterward. Make sure new purchases are handled the way you expect, and have a plan to clear the balance before the intro window closes. Read all the terms, per the CFPB.

Key terms at a glance

Card typeDebt management (balance transfer)
Intro APROften low or 0% for a set period — then regular APR applies
Balance transfer feeUsually a percentage of the amount transferred
Best forPaying down existing card debt within the intro window
After intro periodRemaining balance accrues at the regular APR

Pros and cons

Potential advantages

  • An introductory low/0% APR period can reduce interest while you pay down debt.
  • Consolidates multiple card balances into one payment.
  • Can save money if you clear the balance before the intro period ends.

Things to watch

  • A balance transfer fee usually applies to the amount you move.
  • After the intro period, the regular APR applies to anything left.
  • Approval, the intro length, and how much you can transfer depend on your credit.
  • It doesn't erase debt — it's only helpful with a real payoff plan.

Sources: CFPB — What is a balance transfer?; CFPB — Credit Cards. Credit-card information follows the U.S. Consumer Financial Protection Bureau (CFPB) and the Federal Reserve; always confirm current rates, fees, and terms with the issuer before applying.

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Frequently asked questions

What is a balance transfer?

A balance transfer moves debt you owe on one credit card to another card, often one offering a low or 0% introductory APR for a set time. The idea is to reduce the interest you pay while you work down the balance. Most transfers include a fee. (See the CFPB's explanation of balance transfers.)

Does a balance transfer hurt my credit?

Applying can cause a temporary dip from the credit inquiry, and opening a new account affects your average account age. But paying down a balance can lower your credit utilization, which may help over time. There are no guarantees — results depend on your overall credit profile.

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