Balance transfer

Also called: credit card balance transfer

A balance transfer moves existing debt, often from another credit card, to a credit card, typically one offering a low promotional APR. A transfer fee usually applies, and a promotional rate usually lasts a limited time; when it ends, the rate can rise.

By Beacon · Updated September 27, 2026

How it works

Many card issuers offer 0% or low-rate balance transfers to attract debt from other cards. The transfer usually carries a fee, typically a percentage of the amount moved or a set dollar amount, whichever is greater. How much you can move depends on the credit limit the new card approves, and a fee charged to the account adds to the balance you need to repay.

A promotional rate usually lasts a limited time. Once it ends, the rate on whatever remains can rise, which increases the interest cost and may raise the payment. Dividing the full amount owed, including any fee, by the number of payments left before the promotion ends shows what it would take to finish in time; a payment near the minimum may leave a balance behind.

A transfer moves debt; it does not reduce it. The old card may show a zero balance once the transfer posts, but the same amount, plus any fee, now sits on the new card. If the old account stays open, new spending on it creates a second balance to repay alongside the transferred one.

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Examples are illustrative and focus on U.S. personal finance. This page is educational, not individual financial, investment, tax, or legal advice. Read our editorial approach or report a correction.

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