Debt Solutions Center
Balance Transfer Credit Cards: Using 0% Interest to Your Advantage
If you have credit card debt, there's a tool that can let you pay it down without paying any interest at all, at least for a while. It's called a balance transfer card. We'll walk you through exactly how it works, when it's a great deal, and when it can actually leave you worse off.
Promo Window
12–21 months at 0%
Typical Fee
3–5% of transferred amount
Credit Impact
Small, temporary dip
We're not a card issuer. Our job is to explain how balance transfers work so you can decide if one makes sense for your situation.
The Basic Idea, Explained Simply
A balance transfer card is a new credit card. Its whole purpose is to let you move your existing debt onto it. Most of these cards offer 0% interest for a set amount of time when you first open them, usually somewhere between 12 and 21 months, depending on the card.
Here's what that means in real life: once you move your debt onto this new card, every single payment you make goes straight toward the amount you owe. None of it gets eaten up by interest, at least not during that 0% window.
It's important to know upfront: a balance transfer card doesn't reduce how much you owe. It moves the same debt somewhere it can grow interest-free for a while — which is different from debt settlement, which actually reduces the balance itself.
How the Transfer Actually Works, Step by Step
You apply for a balance transfer card, the same way you'd apply for any credit card.
If you're approved, you request a transfer. You tell the new card issuer how much debt you want to move over, and from which of your old cards.
The new card issuer pays off your old creditors directly.
Your debt now lives on the new card, at 0% interest for the promotional period stated in your card's terms.
One thing to know upfront: your new card comes with a credit limit, and that limit might not be big enough to cover everything you want to transfer.
The Math You Actually Need to Do Before You Apply
Before you transfer anything, do this simple math: take your total balance, and divide it by the number of months in your promotional period. That tells you what you'd need to pay each month to wipe out the balance completely before the 0% rate ends.
Here's an example: say you're transferring $6,000, and your card gives you 18 months at 0%. Divide $6,000 by 18, and you get $333. That's roughly what you'd need to pay every single month to be debt-free by the time the promotional rate runs out.
The Fee Almost Every Card Charges
Nearly all balance transfer cards charge a fee for the transfer itself, usually somewhere between 3% and 5% of the amount you move over. So if you're transferring $6,000 and the fee is 3%, that's an extra $180 added onto your new balance right away.
What Happens If You Don't Pay It Off in Time
Once your promotional period ends, the interest rate on whatever balance is left jumps up, often by a lot. Some cards also use something called deferred interest: if you don't pay off the entire balance by the end of the promotional period, you can end up owing interest on the whole original amount, going all the way back to day one.
A Real Side-by-Side Comparison
Path one: you do nothing. You're carrying $6,000 at a 24% interest rate on your current card, making $250 payments each month. It would take you well over two years to pay it off.
Path two: you transfer to a 0% card. You move that same $6,000 to a card with an 18-month promotional period and a 3% transfer fee. Your new starting balance is $6,180. At that same $250 monthly payment, you'd only pay down about $4,500 by the time the 18-month promo ends — leaving roughly $1,680 still outstanding. That leftover balance starts accruing interest at the card's standard ongoing APR (often similar to what you were paying before), adding a bit more cost and time before you're actually done. You'd still come out ahead of Path One overall, since 18 of those months were interest-free, but it's not a fully interest-free payoff at this payment amount — you'd need closer to $344/month to clear the balance before the promo ends.
Who This Option Works Best For
You're a good candidate for a balance transfer card if you:
Have good to excellent credit
Have a balance that's realistic to pay off within the promotional window
Are confident you won't add new charges to the card while you're paying it down
Want to avoid interest entirely rather than just lower it
If your balance is large enough that even a serious payment plan wouldn't clear it before your promotional rate expires, a personal consolidation loan might be a better fit, since it locks in one fixed rate for a longer, predictable stretch of time.
Advantages & Drawbacks
Advantages
Genuinely 0% interest during the promotional window — not just a lower rate
No new loan or credit type — still a credit card, familiar to manage
Can meaningfully speed up payoff if you stick to the plan
Some cards offer rewards once you're back to a standard rate
Drawbacks
Requires good to excellent credit to qualify for the best offers
Transfer fees (3–5%) add to your balance right away
Deferred interest on some cards can wipe out the benefit if you're late paying it off
Credit limit may not cover your full balance
Easy to fall back into debt if you keep using the old card
Mistakes to Steer Clear Of
Skipping the payoff math before transferring
Continuing to use the old card once it's paid off
Missing a payment during the promotional period
Not checking whether your card uses deferred interest
Transferring more than you can realistically pay off just because the limit allows it
Card Comparison
Factual information only, based on each issuer's public disclosures. We don't rank, rate, or recommend one card over another here — always confirm current terms directly with the issuer, since offers change often.
| Card | Intro APR Window | Transfer Fee | Ongoing APR (Variable) | Transfer Deadline |
|---|---|---|---|---|
| Citi Simplicity® Card | 0% for 18 months (purchases & balance transfers) | 3% (first 4 months), then 5% ($5 min) | 17.49%–28.24% | Within 4 months of account opening |
| Citi® Diamond Preferred® Card | 0% for 21 months (balance transfers) / 12 months (purchases) | 3% ($5 min, first 4 months), then 5% | 16.49%–27.24% | Within 4 months of account opening |
| Wells Fargo Reflect® Card | 0% for 21 months (purchases & balance transfers) | 5% ($5 min) | 17.49% / 23.99% / 28.24% | Within 120 days of account opening |
| U.S. Bank Shield™ Visa® | 0% for 21 billing cycles (purchases & balance transfers) | 5% or $5, whichever is greater | 16.99%–27.99% | Within 60 days of account opening |
| BankAmericard® credit card | 0% for 18 billing cycles (purchases & balance transfers) | 3% (first 60 days), then 4% | 14.74%–24.74% | Within 60 days of account opening |
| Citi Double Cash® Card | 0% for a shorter promotional window than Citi's other two cards above (confirm current length at issuer) | 3% ($5 min) | Varies by creditworthiness | Confirm at issuer |
Information reflects each issuer's own public disclosures as of the last-updated date on their individual offer page. Rates, fees, and transfer deadlines change often and depend heavily on your own creditworthiness — always confirm current details directly with the issuer before applying.
Compare Card Offers with SuperMoney
SuperMoney's free credit card marketplace includes a Balance Transfer Credit Cards category alongside its broader card comparisons — a useful starting point for seeing multiple issuers side by side.
Compare My OffersAdvertising disclosure: we may earn a commission if you're matched with a card issuer through SuperMoney. This does not affect our comparisons above.
Balance Transfer Payoff Calculator
Estimate your monthly payment needed to clear a transferred balance before the promo ends, and see how a transfer fee affects your total cost.
Your Numbers
Required Monthly Payment to Pay Off Before Promo Ends
$343
Total Transfer Fee
$180
Remaining Balance if Underpaying
$1,680
Est. Interest After Promo (on leftover balance)
$31/mo
Estimates only, based on the numbers you enter and a general ongoing APR assumption for the post-promo interest figure. Your actual card's terms — especially whether it uses deferred interest — may produce a different result. Always confirm current terms with the issuer.
Balance Transfer vs. Other Options
Vs. a debt consolidation loan: a consolidation loan locks in one fixed rate for a longer, predictable stretch of time — better if your balance is too large to clear within a card's 0% window. A balance transfer card is interest-free for longer, but only if you can pay it off before the promo ends.
Vs. a debt management plan: a DMP doesn't require good credit the way a balance transfer card does, and the reduced rate comes through your creditor relationship rather than qualifying for a new card. A balance transfer can be faster and cheaper if your credit qualifies you for a long 0% window.
Vs. debt settlement: debt settlement actually reduces what you owe, at a real cost to your credit. A balance transfer repays the full balance with no credit damage beyond the initial application, but doesn't shrink the balance itself.
Frequently Asked Questions
Does opening a new card hurt my credit score?
Can I keep using my old card after I transfer the balance?
What if I can't pay off the full balance in time?
Can I transfer between two cards from the same bank?
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