Save Money with Balance Transfers
Learn how to use 0% APR balance transfer offers to eliminate interest payments and pay off debt faster.
How Balance Transfers Work
Understanding the process, benefits, and potential pitfalls of balance transfers.
The Balance Transfer Process
- Apply for a balance transfer card - Look for cards offering 0% APR introductory periods on balance transfers.
- Get approved - The card issuer will review your credit score and history to determine if you qualify.
- Initiate the transfer - Provide the new card issuer with information about your existing debt (account numbers, amounts).
- Pay the transfer fee - Most cards charge a fee of 3-5% of the transferred amount.
- Make payments during the 0% period - Pay as much as possible to eliminate the debt before the promotional period ends.
Important
Benefits and Considerations
Save Money on Interest
During the 0% APR period, 100% of your payment goes toward reducing your principal balance.
Pay Off Debt Faster
Without interest accumulating, you can make faster progress on eliminating your debt.
Simplify Your Finances
Consolidate multiple credit card payments into a single monthly payment.
Balance Transfer Fees
Most cards charge a fee of 3-5% of the transferred amount, which can offset some of your savings.
Limited Time Offer
The 0% APR period typically lasts 12-21 months. After that, the rate jumps to the standard APR.
Credit Score Impact
Applying for new credit can temporarily lower your credit score, though responsible use can improve it long-term.
Comparing Balance Transfer Offers
Key factors to consider when choosing a balance transfer credit card.
| Feature | What to Look For | Why It Matters |
|---|---|---|
| Intro APR Period | Longer is better (12-21 months) | Gives you more time to pay off debt interest-free |
| Balance Transfer Fee | Lower is better (3-5% typical) | Directly impacts your total savings |
| Regular APR | Lower is better if you can't pay off in full | Determines interest rate after promo period |
| Annual Fee | No annual fee is ideal | Avoid paying fees that reduce your savings |
| Credit Score Requirement | Matches your credit profile | Determines likelihood of approval |
| Additional Benefits | Rewards, purchase protection, etc. | Added value beyond the balance transfer offer |
- 0% APR for up to 21 months
- Higher balance transfer fee (5%)
- No annual fee
- Limited rewards program
Best for: Those who need maximum time to pay off large balances
- 0% APR for 15 months
- Low or no balance transfer fee (0-3%)
- No annual fee
- Higher credit score requirements
Best for: Those who can pay off debt faster and want to maximize savings
- 0% APR for 12-15 months
- Standard balance transfer fee (3-5%)
- Ongoing rewards program
- May have annual fee after first year
Best for: Those who want a card with long-term value after debt payoff
Balance Transfer Strategies
Maximize your savings and successfully pay off your debt.
Create a Payoff Plan
Divide your balance by the number of months in the promotional period to determine your monthly payment goal.
Set Up Automatic Payments
Ensure you never miss a payment, which could trigger penalty APRs and late fees.
Read the Fine Print
Understand all terms and conditions, including what happens if you make a late payment or don't pay off the balance during the promotional period.
Keep Your Old Card Open
Closing old accounts can hurt your credit score by reducing your available credit and shortening your credit history.
Make New Purchases on the Card
New purchases may not be covered by the 0% APR offer and can complicate your payoff strategy.
Apply for Multiple Cards at Once
Multiple applications in a short period can significantly impact your credit score.
Miss the Fine Print
Some offers require the transfer to be completed within a specific timeframe after account opening.
Rack Up New Debt
Don't use the freed-up credit limit on your old card to accumulate more debt.