A balance transfer moves debt from one credit card to another, usually one with a 0% intro APR. Every payment then goes toward the balance instead of interest.
How a balance transfer works
You apply for a new card, then ask the new issuer to pay off your old card. The transferred amount, plus a fee of 3% to 5%, becomes your new balance at 0% for the intro period.
What it costs
- Transfer fee: usually 3% to 5% of the amount transferred.
- Intro APR: 0% for 12 to 21 months.
- Regular APR: applies to anything left after the intro period.
One of the longest 0% intro periods on balance transfers, plus no late fees and no penalty APR.
Rates & fees apply. Offer terms set by the issuer.
Common mistakes to avoid
- Missing the deadline to transfer during the intro window.
- Making new purchases on the old card.
- Paying only the minimum and running out of time.
Ledgerly tip
Divide your balance by the number of 0% months and set up autopay for that amount. You will be debt-free before interest kicks in.
