What Is a Balance Transfer?
Moving debt from one credit card to another, usually to get a low promotional interest rate for a set time, often for a one-time transfer fee.
Card issuers sometimes offer a low promotional rate, even 0%, on balances you move over from another card. There is usually a balance transfer fee, and the low rate only lasts for the promotional period. Whatever is left after that is charged the card's regular rate.
Used well, it buys time to pay down the debt itself without interest piling on. Used badly, it just moves the problem. The CFPB has warned that issuers don't always make clear that you can lose the grace period on new purchases while a transferred balance is unpaid, so new spending on that card may start charging interest right away.
You move $1,200 to a card with a 0% promotional rate for 12 months and an example 3% fee, so $36 is added up front. Paying $103 a month clears the $1,236 inside the promo. Paying $50 a month leaves $636 to hit the regular rate when the promo ends.
Key points
- A transfer fee is usually added to the balance.
- The low rate ends, so plan to clear the balance before it does.
- Avoid new purchases on the same card.
Put it to use
Sources CFPB: Warning on deceptive marketing of promotional offers Checked October 2026. Rules and fees vary by issuer and country; your card agreement has the final word.
Carrying a balance? Put every card and plan in one place, then pick a payoff order.