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What is a Balance Transfer Credit Card?

12 min read

Last Updated: June 24, 2025

Table of contents

Key Takeaways

The best credit card for a balance transfer may come with a low introductory APR.
Transferring your credit card balance can help you pay off debt faster.
Some balance transfer credit card offers may come with no annual fee or a cash back rewards program.

Tackling high-interest credit card balances may feel like an uphill battle. As interest piles up, keeping up with payments can become more difficult, and the amount you owe can grow by the day. Juggling balances across several cards may be even more difficult to manage. A credit card balance transfer is one strategy for achieving some relief. This approach involves moving your existing debt to a new credit card that offers a lower interest rate, potentially saving you money and simplifying your payments. We’ll discuss the ins and outs of credit card balance transfers and guide you through selecting the best credit card for your balance transfer needs.

What is a balance transfer?

A balance transfer allows you to shift outstanding debts, including credit card balances and loans, from one account to another. If you have multiple debts with different annual percentage rates (APRs), you might use a balance transfer to consolidate them so they’re easier to manage. Likewise, if you have a balance accumulating interest at a high rate, transferring it to an account with lower interest may help you manage your debt.

What is a credit card balance transfer?

As you may have guessed, a credit card balance transfer is when you move debt with a high interest rate to a credit card with a lower APR. With a lower interest rate, your balance won’t grow as quickly, which ideally buys you the time you need to repay it and save money.

Suppose you have a high balance on a store credit card that has a 21% APR. In that case, you may be able to transfer that debt to a credit card with a lower introductory rate, saving money on interest charges if you pay off the balance by the end of the balance transfer introductory period.

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How to do a credit card balance transfer

How credit card balance transfers work. Step 1. Consolidate - Decide how much you would like to transfer. Step 2 - Transfer - Apply for a balance transfer credit card. Step 3 - Save - Save on interest and pay off credit card debt. The infographic presents these steps in a sequential 1-2-3 format.

See Balance Transfer Offer

The exact process for transferring a credit card balance may vary depending on your credit card company and unique situation. But most credit card balance transfers follow the same basic steps.

1. Find the right credit card

Look for a credit card with a low introductory APR offer for balance transfers and other features you value. If you want to keep using the new credit card after you repay your balance, you may want a rewards credit card that lines up with your spending habits.

2. Apply

When you find a credit card that seems like the right fit for your balance transfer, it’s time to apply. The credit card issuer may offer pre-qualification, which may give you an idea of the offer you may receive before you apply.

3. Initiate the transfer

You may be able to transfer the balance from your old card (or cards, if you’re using the new card for debt consolidation) over the phone, through online banking tools, or in person. You’ll typically have to provide information about your existing debt, including the credit card company and account number.

4. Let the transfer process

It may take some time for the balance transfer to go through. Many credit card companies pay down your old account on your behalf. You’ll know when the transfer completes because the new balance, including the balance transfer fee, will show up in your new credit card balance.

5. Repay your balance

After the transfer processes, you should begin paying down your balance. Credit card issuers typically don’t offer a grace period for balance transfers, so your balance may begin accruing interest right away unless your new card has a 0% APR offer. You may have to pay more than the minimum monthly payment to repay your debt before the promotional period ends and the standard APR applies.

6. Continue paying your old balance

If you only transferred a portion of the balance on your old credit card, make sure you continue making your monthly payment until it’s paid off.

Benefits of credit card balance transfers

While credit card balance transfers aren’t the only way to manage credit card debt, they do offer some unique advantages:

Lower credit utilization ratio. When you open a credit card account, your new credit limit increases your overall available credit. This may decrease your credit utilization rate before you even begin to lower your outstanding balance.
Faster repayment. With lower interest charges, a bigger portion of your payments may go toward your principal balance. That way, you may reduce your debt in less time.
Potential rewards. You may get additional value out of your credit card balance transfer by choosing a card with rewards. While you may not want to use your card for additional purchases until you repay your initial balance, you may earn cash back on future eligible transactions.
Avoiding late fees. If you're struggling to make minimum payments on your current card balance, you might incur some late fees. Transferring the balance to a card with lower payments may make it easier to pay on time.
Financial breathing room. A balance transfer may lower your monthly payment, leaving you with more money to pay down your overall credit card debt or to cover other necessities.

What to consider before applying for a credit card balance transfer

A credit card balance transfer may offer a convenient way to manage your outstanding credit card debts. You should keep a few factors in mind before you apply for a balance transfer:

How much you want to transfer. You can only transfer up to the credit limit on your new card. If you can’t transfer all your outstanding credit card debt, consider how much you would have to move in order to make your balances more manageable.
Your current card's APR. Keep your current card’s APR in mind to compare with potential balance transfer offers. How low would the APR have to be for you to pay down your debt consistently? A balance transfer may not be the best fit if your current card already has a low APR.
Your new card's introductory APR. Credit card balance transfer offers typically include a lower APR for a set period after you open your account. Your rate may vary depending on your credit card issuer and your qualifications, like your credit score.
Your new card's regular APR. While, ideally, you’d repay your balance within the introductory APR period, it’s still important to know your new card’s standard interest rate and interest rates for specific types of transactions, like a cash advance. Also, keep in mind if the new card begins accruing interest immediately for any new purchases.
The balance transfer fee. Credit card issuers typically charge a fee for balance transfers. The fee is usually a small percentage of the amount you’re transferring. That fee increases your balance. If you transfer $3,000 with a 3% balance transfer fee, your new starting balance would be $3,090. Make sure you weigh the cost of balance transfer fees against the amount you’ll save in interest before deciding.
Length of the promotional balance transfer period. After the promotional period, your balance will begin accumulating interest at the standard rate, so it’s important to note that timeframe. As you’re choosing a card for your balance transfer, you may want to prioritize cards with longer introductory periods so you have time to repay your transferred balance.
How much you'll have to pay each month. You'll likely have to pay more than the monthly minimum payment to pay off your full balance within a credit card’s balance transfer introductory period. You might choose to pay the same amount each month or adjust payments based on changes to your income and spending.

Credit Card Balance Transfer Calculator

Easily calculate your potential savings with a Discover^® balance transfer offer. Simply enter your current balances (totaling up to ), APRs, and how much you pay each month.

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Your potential savings over months with a balance transfer from Discover

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Legal Disclaimer: The articles and information provided herein are for educational purposes only and are not intended as a substitute for professional advice.

*Estimated Savings Calculation Assumptions

Information and interactive calculators are made available as self-help tools for your independent use and are intended for educational purposes only.
Assumes no other existing balances or new transactions are made to the account.
Assumes interest accrues over the duration of the intro period on the balances and APRs you provided and the offer details above.
Assumes your entered Monthly Payment. This may vary from your Minimum Monthly Payment as defined by your Cardmember Agreement.
Your savings will vary.

How to choose the right balance transfer offer

When you’re choosing a balance transfer credit card offer, consider the qualities you’d look for in any credit card. That way, you can keep benefiting from your card even after you repay your balance. While finding a card with a lower interest rate is important, you should also consider your other credit priorities. For example, if you want to earn rewards as you use your card, you can transfer your balance to a cash back credit card. Access to perks like security features that keep your information safe may also influence your decision.

Consider your budget and how you’d like to use the card in the future. For example, if you want to use your credit card for everyday purchases, you may want one with rewards at grocery stores and gas stations.

Why choose Discover® for balance transfer offers

If you're looking for a balance transfer credit card offer, the Discover it^® Cash Back Card may be a good fit. You may receive a low APR balance transfer offer, making it easy to pay off your existing debts. With Discover, there’s no annual fee. That way, you can keep more in your pocket as you pay down your balance.

After you repay your debt, you can also enjoy rewards on all eligible purchases. Earn 2% Cashback Bonus^® at gas stations and restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases.²

Did you know?

Every Discover Card lets you earn rewards on every purchase. Choose the card that earns the type of rewards that are most valuable to you.

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How to transfer a balance to your Discover Card

You may qualify for a balance transfer introductory offer with a low APR if you're new to Discover. Then, you can transfer your balances from other cards to your Discover Card, up to your credit limit.

If you’re already a Discover^® Cardmember and you want to consolidate credit card debts, you can check your online account portal to see if you have a credit card balance transfer offer available. An account must be open for 14 days before Discover can begin processing your balance transfer request. After that, most transfers are processed within 4 days.

Tips for getting the most out of credit card balance transfers

Credit card balance transfers have the potential to help you repay your debts and improve your financial well-being. However, the benefit you receive from them depends on your habits and behaviours. To make the most of your balance transfer, consider the following tips:

For a balance transfer credit card offer to have a lasting impact, it’s important to keep your spending under control. If you continue accumulating debt during your low-interest introductory period, you might end up with unmanageable credit card bills again.

If you qualify for a balance transfer offer, seize the opportunity to pay off as much debt as possible before the promotional period expires. That might mean making the highest payments you can afford until you’ve paid down your balance.

Remember that transferring your balance doesn’t close the original card, and you may want to keep your card open. Closing old accounts means losing some of your available credit, which can impact your credit score by changing your credit utilization ratio. You may also affect your score by shortening the average age of your accounts.

If you keep your old card open, avoid racking up debt just because you have the available credit. Doing so can erase any headway you may have made with the transferred balance in the first place.

It’s important to be disciplined about making payments to the new card on time every month. Late payments can wreak havoc on your credit score, trigger a late fee, or even increase your interest rate. The new APR could be much higher than the promotional rate you started out with.

Balance transfer FAQs

Each credit card issuer has its own requirements for balance transfer credit card offers. As with other credit cards, you’re more likely to qualify for the most competitive options if you have a good credit score. However, you don’t necessarily need excellent credit to qualify for a credit card balance transfer.

Balance transfers don’t automatically close an account. If you want to close a credit card account after a balance transfer, contact the credit issuer on the original account. However, you may want to keep the card open, as closing cards may increase your credit utilization ratio, which may impact your credit score.

Balance transfers can positively or negatively impact your credit score depending on your unique circumstances. Credit card issuers typically have to perform a hard credit inquiry to see if you’re approved for a balance transfer credit card offer, which could hurt your credit in the short term. However, with responsible use, a credit card balance transfer could improve your credit utilization ratio and help you make monthly payments on time, which are both important factors to positively impact your credit score.

The amount you can transfer depends on the new card’s credit limit and the issuer’s policy. There may be debts from specific account types that you can’t transfer to your new card, and the issuer may limit how much you can transfer based on the credit limit you’re approved for.

The bottom line

With some discipline and research, you can use a balance transfer credit card offer to regain control over your debt. To find the best card for your situation, consider interest rates, the new card’s promotional period, and potential fees. Practice healthy credit habits to reduce your balance—pay more than the monthly minimum whenever possible, pay on time, and avoid increasing your credit utilization. After you’ve repaid your balance, you can enjoy your new card’s perks and rewards.

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