What Is A Balance Transfer Credit Card? Bankrate Caret RightMain Menu Mortgage Mortgages Financing a home purchase Refinancing your existing loan Finding the right lender Additional Resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Bank Banking Compare Accounts Use calculators Get advice Bank reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Credit Card Credit cards Compare by category Compare by credit needed Compare by issuer Get advice Looking for the perfect credit card? Narrow your search with CardMatch Caret RightMain Menu Loan Loans Personal Loans Student Loans Auto Loans Loan calculators Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Invest Investing Best of Brokerages and robo-advisors Learn the basics Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Home Equity Home equity Get the best rates Lender reviews Use calculators Knowledge base Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Loan Home Improvement Real estate Selling a home Buying a home Finding the right agent Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Insurance Insurance Car insurance Homeowners insurance Other insurance Company reviews Elevate your Bankrate experience Get insider access to our best financial tools and content Caret RightMain Menu Retirement Retirement Retirement plans & accounts Learn the basics Retirement calculators Additional resources Elevate your Bankrate experience Get insider access to our best financial tools and content Introduction to Balance Transfer Credit Cards Advertiser Disclosure
Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.
Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: On This Page
olsim photo / Shutterstock August 12, 2022 Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Former Senior Editor Barry Bridges has been writing about credit cards, personal loans, mortgages and other personal finance products since 2017. Before joining Bankrate, he was an award-winning newspaper journalist in his native North Carolina. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
Bankrate follows a strict , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. Key Principles
We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers. Editorial Independence
Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information. Bankrate logo How we make money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. A balance transfer credit card is any credit card that lets you transfer balances from other accounts. Most of the time, balance transfer credit cards offer consumers an introductory 0 percent APR — or zero interest — on their balance for a limited time (usually between 12 and 21 months). Because it’s so easy to rack up balances when you shop with a credit card, some consumers end up in a position where they have a large amount of debt to pay off. And since the is currently over 17 percent, many people find themselves paying so much interest on their balances that it can take years, or even decades, to pay off their debt. In these instances where paying off debt the old-fashioned way seems insurmountable, a balance transfer card could be the tool you need. When you transfer debt to a balance transfer credit card, you begin saving money on interest right away. Not only that, but every dollar you pay toward the credit card bill will go directly to the principal balance you owe. For that reason, a balance transfer credit card can be a valuable tool for those looking to get out of debt. What is a balance transfer credit card
When you apply for a balance transfer credit card, you’ll be able to indicate which balances you’d like to transfer to the card upon approval. Then, you’ll enter the account number from each credit account you’d like to transfer, as well as the amount of money you plan to move to your new balance transfer credit card. In order to complete the balance transfer, you’ll likely also need to pay a of 3 percent to 5 percent (usually with at least a $5 minimum) on every balance you transfer to your new card. Note that it generally takes to transfer a balance to a new balance transfer card. Be sure to make regular payments on all of your existing credit cards until you have confirmed that your balances have transferred in full and any final interest charges have been paid off. What kinds of debt can be transferred to a credit card
Balance transfer credit cards allow you to transfer high-interest debt from one card to another, but some issuers allow you to , such as car loans, student loans and personal loans. Many issuers allow you to transfer different types of debt to a balance transfer credit card, but most issuers won’t allow debt transfers from different internal accounts. Before you assume this to be true with your issuer, confirm with your credit card company directly. Pros of balance transfers
Pay zero interest for a limited time: With the right balance transfer credit card, you can save money on interest for up to 21 months. This means you can save hundreds or even thousands of dollars as you pay down debt. Simplify repayment: A balance transfer credit card lets you move several different accounts to one new one, which means you can pay one large bill each month instead of several small ones. Pay down debt faster: Without any interest charges accruing each month, every cent of your payment goes toward your principal balance. This means you can pay down debt faster and with less effort. Access other cardholder perks: Some balance transfer cards come with additional benefits, like consumer protections and the ability to earn rewards. Improve your credit score: A balance transfer could . When you open a new line of credit, you’ll generally see your improve. If you make regular monthly payments on your transferred balances without taking on any new debt, your credit utilization ratio will continue to go down — meaning your credit score should continue to go up. Cons of balance transfers
Balance transfer fees apply: You’ll typically need to pay an upfront fee equal to 3 percent or 5 percent of your balance, which can eat away at your interest savings. However, there are a few cards with no balance transfer fee on the market. Here are our picks for the Introductory offers don’t last forever: The longest balance transfer offers last for 18 or 21 months, and some only last for 12 months. After your, you’ll start paying your credit card’s regular variable APR on any remaining balance. Balance transfers can be a band-aid for a larger problem: If you have an issue with overusing credit cards, a balance transfer credit card could hurt more than it helps. Always remember that balance transfers only move debt around and that your situation won’t improve without changes to your spending habits. Who should get a balance transfer credit card
If you have a mountain of high-interest credit card debt you can’t seem to get under control, a balance transfer credit card with a 0 percent APR offer can surely help you save a bit on interest. And know you aren’t alone. According to data from , in the 12 months leading to May 2021, nearly half of all credit card users carried a balance at least once. And The debt reducer: Interest rates are hovering above 17 percent, so if you’re looking for a way to pay down credit card debt, you aren’t the only one looking for a solution. Balance transfer credit cards are a solid idea for individuals looking for a way to cut down on mounting debt with a 0 percent APR intro offer. The quick payer: If you want a little extra time to pay off a particular balance, perhaps you recently made a , a balance transfer credit card may be the right move. If you can manage to pay off your balance before the 0 percent APR period ends, you will successfully dodge any interest that may otherwise be added to your balance. The consolidator: If you are someone who prefers to stay organized and juggling multiple balances at once gets to be too much, you may consider transferring multiple balances to one card. By into one, you will only have one payment to keep up with. Is a balance transfer right for me
Balance transfers are best for those with a lot of high-interest debt to pay down. By that extends a 0 percent APR for a limited time, you get the chance to save money on interest and pay down the balance at a much faster pace. That said, some people take out balance transfer credit cards with good intentions but find themselves racking up new balances on their credit cards even as they work to pay their old balances off. If you’re not ready to commit to paying off your credit card debt without taking on new debt, a balance transfer credit card might not be the right option for you. At the end of the day, your success with a balance transfer credit card depends largely on how you use it and how prepared you are for the debt repayment process. If you have a debt larger than your potential new credit limit, have a lower credit score or need a longer payoff plan, it’s worth considering a personal loan. Although you’re unlikely to get a 0 percent intro APR on a personal loan, interest rates on standard personal loans from banks and other financial institutions tend to be a lot lower than credit card interest rates. If it’s going to take you a while to pay off your debt, you may be . The bottom line
Figuring out what a balance transfer is could be the first step to becoming free of debt, but do your research. For example, you should compare all the on the market today and go through all your bills to find out exactly how much you owe and to whom. If you’re deep in debt, you’ll need to face the details of your situation head-on. You’ll also want to create a plan that helps you avoid using credit cards and racking up more debt along the way. A balance transfer can help you get where you want to be much faster, but only if you’re honest with yourself. SHARE: Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards.com, Johnson does ongoing work for clients that include CNN, Forbes Advisor, LendingTree, Time Magazine and more. Former Senior Editor Barry Bridges has been writing about credit cards, personal loans, mortgages and other personal finance products since 2017. Before joining Bankrate, he was an award-winning newspaper journalist in his native North Carolina.