0%intro APR, often 12–21 months
3–5%typical transfer fee
~670+credit usually needed
Slight dipthen often a long-term boost
How it works
You open a card with a 0% introductory APR on balance transfers, move your high-interest card balances to it, and pay it down during the promo period. You pay a one-time transfer fee, but no interest until the promo ends.
The one calculation that matters
Monthly payment needed = (balance + transfer fee) ÷ months of 0% APR
Example: $9,000 moved with a 3% fee ($270) to an 18-month 0% card means about $515 a month to clear it in time. At 22% APR, the same $515 a month would pay about $1,900 in interest over those 18 months, and you'd still owe about $1,600.
If you can't afford that payment, a partial transfer still helps, but plan for what's left when the promo ends. Model it in the payoff calculator.
Rules of thumb
- Your new limit may not cover everything. Transfer the highest-rate balances first.
- Don't miss a payment. A late payment can end the promo rate early on many cards.
- Don't add new purchases to the transfer card unless purchases are also at 0%. Payments may go to the transferred balance first while new purchases build interest.
- When the promo ends, most bank cards start charging the regular APR on what's left from that point forward. Store cards and some financing deals use deferred interest, which can charge interest all the way back, so read the terms.
- Usually only works within one bank's rivals. You typically can't transfer a balance between two cards from the same issuer.
Upsides
- Cheapest path if you finish on time
- No program or monthly fees
- Every payment hits principal
Downsides
- Needs good credit to qualify
- Limit may not cover all debt
- Big payments to finish in time
Balance transfer or consolidation loan?
A loan takes longer but gives you a fixed payment. Here's how they stack up.
Compare them Pair it with avalanche