How It Works

A balance transfer card may offer a low or 0% promotional APR for a set number of months. During that window, more of your payment can go toward the balance instead of interest.

Most balance transfers charge a fee, often a percentage of the amount moved. That fee matters when deciding whether the transfer is worth it.

Example: A $4,000 transfer with a 3% fee adds $120 to the new card balance.

When It Can Help

  • You qualify for a meaningfully lower promotional rate.
  • You have a plan to pay down the balance before the promotion ends.
  • The transfer fee is less than the interest you expect to save.

Common Risks

A transfer can backfire if you keep spending on the old card, miss payments, or still have a large balance when the promotional period ends.