How to Do a Credit Card Balance Transfer
9 Min Read | Published: March 28, 2025
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Learn how to do a balance transfer on a credit card. See steps to take when doing balance transfers, important considerations, and mistakes to avoid.
At-A-Glance
- Transferring credit card balances to a credit card with a low introductory interest rate may help you save and pay off debt faster.
- Before choosing a balance transfer credit card, it’s important to compare all fees, review any promotional period timelines closely, and understand post-introductory interest charges.
- Only making minimum payments during the promotional period or adding new charges could make your balance transfer more expensive.
If you find that you’re struggling to pay down credit card debt, a balance transfer card is one solution that some people opt for, and it can be a good way to get a fresh start on paying down your debt.
But they’re not right for every situation. Let’s learn about the efficiency of balance transfers for debt management, mistakes to watch out for, and how to do a balance transfer on a credit card.
What Is a Balance Transfer Credit Card?
With a balance transfer credit card, the credit card issuer will pay off the balance on your credit card and then transfer that balance to the new one. This can help you to streamline your payments and even save money on interest.1
People often use a balance transfer credit card to move an outstanding balance from one card to another with lower interest or a 0% introductory APR offer.
Balance transfers are an available option for debt management, but they may not be right for every situation. These cards may have fees and the promotional period may be limited, so you’ll want to pay off the balance before it ends and the card reverts to its regular APR. You’ll also want to consider whether you will be able to stick to your payment plan and make on-time monthly payments, without adding to the balance.
How to Transfer Credit Card Balances
Here are four steps for doing a balance transfer on a credit card:
1. Choose a Balance Transfer Credit Card
Compare cards with low or 0% introductory APR offers and consider balance transfer fees as well. These may range between 3% to 5% of the balance you want to move, and may vary.2 Be sure to note the length of the promotional period, the APR increase that takes place after the promotion ends, and additional fees or charges that may apply.
| How to Find a Balance Transfer Card with American Express | |
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Step 1: Compare Balance Transfer Credit Cards
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Step 2: Apply With Confidence
Know if you're approved for a Card with no impact to your credit score. |
2. Initiate the Transfer
Options for initiating the balance transfer include through your online account, through your issuer’s app, or over the phone. Balance transfers may take two weeks or longer, so it’s important to keep making payments on your current card in the meantime.
3. Follow Up
After initiating the credit card balance transfer, confirm the correct amount was transferred over and check your old accounts for any leftover interest charges. You can also set payment reminders for the current account to avoid late fees while finalizing the transfer.
4. Pay Off Your Balance
With a balance transfer card, you may have a minimum payment that’s due each month. It’s important to pay this on time or pay more than the minimum each month if you’d like to lower your debt more quickly. Working toward paying off your credit card’s balance before the introductory period ends can help you to save the most on interest.
Balance Transfer Mistakes to Avoid
- Missing or Late Payments
With your new balance transfer card, make sure you make at least the minimum payment on time every month. Missing or late payments can result in a penalty APR, which could end up being higher than the card’s regular APR.3 Additionally, late payments could be damaging to your credit score as well. Learn more about how a balance transfer card affects your credit score. - Making Only Minimum Payments
Only making minimum monthly payments will prolong your debt’s lifespan, which means that interest charges will apply once the promotional period. It’s advisable to pay as much as possible during the introductory period. - Overlooking Fees and Interest Rate Changes
Overlooking fees and charges could be costly, so make sure you read your balance transfer card’s terms and conditions carefully before applying for it. - Falling Back Into Old Habits
Your balance transfer card can be a new start for solidifying better spending behaviors, so focus on paying down your existing balance, not spending. - Neglecting Your Credit Report
Failing to check your credit report may make errors or unexpected changes that affect your score harder to spot throughout the balance transfer process.
Did you know?
Having strong credit may help you qualify for better balance transfer credit card offers, which may include lower interest rates and higher spending limits. Checking your credit report is a smart habit before, during, and after a balance transfer.
Frequently Asked Questions
The amount you can transfer will depend on your new balance transfer credit card’s terms and balance transfer limit. Consider shifting a portion of the balance if you know you won’t be able to pay off the entire balance on the new card.
After a balance transfer, you can keep the card open without using it, continue to use it responsibly, or cancel the credit card. However, take time to research credit card cancellations, as closing credit lines may have a negative impact on your credit score.
If you cannot make the minimum payments and will not be able to pay off the balance before the promotional period ends, it may be best to avoid doing a balance transfer. Additionally, balance transfers may not be the best option if you struggle with overspending.
The Takeaway
Transferring balances to a credit card with less interest is one strategy for increased savings and paying off high-interest debt faster, but success depends on choosing the right card, avoiding common mistakes, and managing spending carefully.
1 “How to Do a Balance Transfer in 5 Steps,” Experian
2 “What Is a Balance Transfer Fee?,” Experian
3 “The pros and cons of 0% APR credit cards,” Bankrate
Liv Gillespie is a Philadelphia-based writer with a double M.A. in English Linguistics & Literature and Secondary Education. Her work focuses on personal finance.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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