Financial glossary
Credit Card Balance Transfer
In plain English
Moving debt from one credit card to another, usually for a promotional rate, often in exchange for an upfront percentage fee.
Credit card balance transfer
A balance transfer moves debt from one credit card to another. Issuers often promote a temporary low or 0% APR for transferred balances, but may charge an upfront fee based on the amount moved. A 3% fee on an $8,000 transfer adds $240 of cost before any interest.
The promotional rate lasts for a defined period. When it ends, any remaining balance follows the ongoing rate disclosed in the offer. The repayment plan therefore matters as much as the headline APR: a transfer can save substantial interest when paid off during the promotion, yet become expensive when a large balance reaches a high post-promotion rate.
Offer terms may restrict transfers from accounts issued by the same company, impose a request deadline, or allow a late payment to affect promotional terms. The approved credit limit must also cover the intended transfer and possibly its fee.
A transfer does not eliminate debt and may change per-card credit utilization. New purchases can have different interest treatment while the promotional balance remains.
Use the balance transfer calculator to compare fee plus interest against keeping the current card at the same monthly payment.
Related calculators
- Credit Card Balance Transfer CalculatorCompare a balance transfer with keeping your current card. Include the transfer fee, promo APR, post-promo APR, payoff time, and real savings.
- Credit Card Payoff CalculatorSee when your credit card will be paid off with a fixed payment — and what minimum payments would really cost you in years and interest.
- Credit Utilization CalculatorCalculate total and per-card credit utilization, then see exactly how much to pay down to reach your target ratio. Private and instant.