Step by step

    How Balance Transfers Work

    Moving debt to a 0% card sounds technical, but it's really just five simple steps. Here's the whole process.

    The idea in one sentence

    A balance transfer moves debt from a high-interest card to a new card with a 0% introductory rate, so you get a set number of months to pay it off without interest piling up.

    The five steps

    1

    Apply for a 0% APR card

    Choose a card with a 0% introductory rate on balance transfers. Approval depends on your credit, and the card should be from a different bank than your current balance.

    2

    Request the transfer

    During or right after signup, tell the new card which balance to move and how much. The new bank pays off your old card directly.

    3

    Pay the one-time fee

    A transfer fee (usually 3%–5% of the amount moved) is added to your new balance. This is the main cost of the transfer.

    4

    Pay it down at 0%

    During the promo period, no interest is charged. Every payment reduces the balance, so pay as much as you can while the clock is running.

    5

    Finish before the promo ends

    Aim to clear the balance before the 0% window closes. Anything left over starts accruing interest at the card's regular rate.

    What to expect on timing

    Approval can be instant, but the actual transfer usually takes a few days to two weeks. Until you've confirmed the old balance is gone, keep making at least the minimum payment on your old card so you don't miss a due date.

    One habit makes or breaks a balance transfer: don't treat the freed-up old card as spending room. The goal is to clear the debt, not to make space for more of it.

    Frequently asked questions

    How does a balance transfer work?

    You open a card with a 0% introductory APR, request to move your existing balance to it, and the new bank pays off your old card. Your debt now sits on the new card at 0% for the promo period, and you pay it down interest-free.

    How long does a balance transfer take?

    Approval can be instant, but the transfer itself usually takes a few days to about two weeks. Keep paying your old card until you confirm the balance has moved.

    Can I transfer a balance between cards from the same bank?

    Usually not. Most issuers don't let you transfer a balance between two of their own cards, so the new 0% card typically needs to be from a different bank.

    How much of my balance can I transfer?

    You can transfer up to your new card's credit limit, minus the transfer fee. If your balance is larger than the limit, you can move part of it and pay the rest down separately.

    Keep reading

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