If you're carrying credit card debt at 20%+ APR, a balance transfer could be one of the smartest financial moves you make this year. Moving your balance to a 0% introductory APR card means every dollar you pay goes straight to reducing your debt — not lining your lender's pocket.
This guide explains exactly how it works, what it costs, and which cards offer the best deals right now.
💡 Real Savings Example
Example based on 21-month 0% intro APR period and 3% balance transfer fee. Use our calculator for your exact figures.
How a Balance Transfer Works
Apply for a balance transfer card
Choose a card with a long 0% introductory APR period on balance transfers. You'll typically need good to excellent credit (670+) to qualify for the best offers.
Request the transfer
Once approved, contact the new card issuer and provide details of the debt you want to move. You can usually do this online, by phone, or during the application. Most transfers complete within 7–14 days.
Pay a transfer fee
Most cards charge a balance transfer fee of 3–5% of the amount transferred. On a $5,000 balance at 3%, that's $150 — still far cheaper than months of 20%+ interest.
Pay down the balance at 0%
During the introductory period — typically 15–21 months — you pay zero interest. Divide your balance by the number of months to set a monthly payment target and clear it before the 0% period ends.
Clear the balance before the intro period ends
When the 0% period expires, the remaining balance starts accruing interest at the card's standard APR — often 19–27%. The goal is to have zero remaining balance before that date.
Best Balance Transfer Cards Right Now
Citi Simplicity® Card
One of the longest 0% intro APR periods on the market for balance transfers. No late fees, no penalty APR, and no annual fee — making it exceptionally forgiving if you occasionally miss a minimum payment. A top choice for anyone focused purely on clearing debt.
BankAmericard® Credit Card
A solid 0% intro offer on both purchases and balance transfers with no annual fee. Simple and effective — a good choice if you also have some upcoming purchases you'd like to make at 0% interest at the same time as paying down transferred debt.
Wells Fargo Reflect® Card
Offers one of the longest potential 0% intro periods available — extendable with on-time minimum payments. Also covers 0% on purchases. Ideal for those who need maximum time to clear a larger balance.
Citi Double Cash® Card
A rare hybrid — a solid balance transfer offer combined with 2% cashback on all purchases once the intro period ends. Good if you want to pay off debt now and then use the card as a long-term rewards card afterwards.
What to Watch Out For
Most cards require you to complete your balance transfer within 60–120 days of account opening to qualify for the 0% intro rate. Transfers requested after this window will be charged the standard APR immediately.
The balance transfer fee
Almost every balance transfer card charges a fee of 3–5% of the transferred amount. This is almost always worth paying when the alternative is months of 20%+ interest — but factor it into your calculations. Our calculator lets you model the exact saving after the fee.
New purchases on a balance transfer card
This is where many people get caught out. If you make new purchases on your balance transfer card, payments are typically applied to the lowest-APR balance first — meaning your new purchases could be quietly accruing interest while you clear the transferred balance. If you need to spend on the card, look for one with 0% on purchases too.
The revert APR
When the intro period ends, your remaining balance immediately starts accruing interest at the card's standard APR — often 19–27%. Set a calendar alert for 30 days before your intro period ends so you can either clear the balance or explore another transfer.
Your credit score impact
Applying for a new card creates a hard inquiry, which can temporarily lower your credit score by a few points. However, if the transfer significantly reduces your credit utilisation ratio, your score may actually improve over time.
Divide your transferred balance by the number of months in the 0% period and set that as your fixed monthly payment. That way you'll clear the balance completely before interest kicks in — with no guesswork.
Is a Balance Transfer Right for You?
A balance transfer makes sense if:
- You have good to excellent credit (670+) and can qualify for a 0% offer
- You're carrying debt at 15%+ APR and can realistically pay it off within the intro period
- You're disciplined enough not to run up new debt on your old card after the transfer
A balance transfer may not be right if:
- Your credit score is below 670 — you may not qualify for the best 0% offers
- Your balance is so large you can't clear it within the intro period
- You've transferred balances multiple times — issuers sometimes decline repeat transfers
After your balance transfer is approved, keep your old card open — but don't use it. Closing it would reduce your total available credit and potentially increase your utilisation ratio, which can lower your credit score.