How to do a balance transfer: 6 simple steps

A balance transfer may be a great option to move high-interest debt to a new card with low or 0% intro APR. Furthermore, many cards offer attractive choices for benefits and rewards. Figuring out how to make a balance transfer, however, can be confusing.

How to do a balance transfer in 6 steps

Completing a balance transfer is simple. Just follow these six steps and you’ll be on your way to a lower interest rate.

1. Calculate your potential savings
2. Compare balance transfer credit cards
3. Apply for a card and request a balance transfer
4. Keep paying your old card until your transfer clears
5. Consider closing old accounts
6. Start paying off your debt

1. Calculate your potential savings

Find out how much debt you currently owe on your credit card and the APR you’re paying on that debt. Calculate how much you can save by moving your debt to a promotional 0% APR card.

Consider if a balance transfer is worth it by looking at the transfer limits, transfer fees and the length of the promotion.

• Balance transfer calculator

  To help you through this process, use our balance transfer calculator to find out how much you could save by making a transfer.

  To use the calculator:

  1. Fill out your current credit card information by inputting the balance and APR on each line below. If you know the details about the card you’re transferring to, fill those out to see how much you’ll save.
  2. We’ll input some default values for you if you don’t have a specific card in mind.
  3. Hit “calculate” to see your savings.

  Card #1

  Amount owed

  $

  Current APR

  %

  Card #2

  Amount owed

  $

  Current APR

  %

  Card #3

  Amount owed

  $

  Current APR

  %

  Card #4

  Amount owed

  $

  Current APR

  %

  Card #5

  Amount owed

  $

  Current APR

  %

  Add another card

  Card that you are transferring to:

  Intro APR

  %

  Intro term

  months

  APR after intro term

  %

  Balance transfer fee

  %

  Annual fee

  $

  Your monthly repayment
  $500

   

   

   

  Critical
  At this rate, you will not pay off your debt.

   

  Recommended
  At this rate you will pay off your debt during the card's intro period

  At that rate you will not pay off your debt. You will need to make higher repayments.

  Months that it will take you to pay off your debt:

  With a balance transfer
  12 months

  Without a balance transfer
  15 months

  Money saved transferring debt to a balance transfer card:

  Savings = $1,000

  By moving forward with a balance transfer credit card and transferring the maximum amount, you could be saving $1,000 on fees and interest charges.

  You will save an infinite amount of money as you will not pay off your debt on your current cards at that rate.

  In this case, a balance transfer card is not the best option. You might want to consider a personal loan to help consolidate your debt. You can find out more here.

  Help me find a card

  Disclaimer: While every effort has been made to ensure the accuracy of this calculator, the results should be used as indication only. Certain assumptions have been made around the repayments made. This calculator is neither a quote nor a prequalification for a credit card.

2. Compare balance transfer credit cards

It’s important to compare 0% intro APR balance transfer offers on the market before deciding which will best serve your needs.

There are many ways to compare balance transfer cards, but a few of the most important factors include:

• Promotional interest rate.
  Most balance transfer credit cards come with a 0% balance transfer intro rate, but some may offer a slightly higher rate.
• Length of the introductory period.
  The introductory period usually lasts between 6 and 21 months. Naturally, the longer the period, the greater your possible savings.
• Ongoing interest rate.
  When the promotional period ends, a revert interest rate applies to your balance. This is usually a higher interest rate, such as the standard purchase and cash advance rate, so factor it into your calculations if you can’t pay off your debt during the intro period.
• Balance transfer fee.
  You may be charged a one-time fee for the balance transfer, typically between 3% and 5% of the transferred amount. You may want a card with no balance transfer fee if you’re transferring several balances — otherwise, this fee could offset your interest savings.
• Balance transfer limit.
  There’s a limit to the amount you can transfer, and this varies among different cards. Usually, you can transfer 70% to 100% of your maximum credit limit.

If you’re still not sure about the right choice, compare our best balance transfer cards.

Our pick for a balance transfer card with 18 months of intro APR
Citi® Diamond Preferred® Card

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• 0% Intro APR for 18 months on purchases from date of account opening and 0% Intro APR for 18 months on balance transfers from date of first transfer. After that the variable APR will be 14.74% - 24.74%, based on your creditworthiness. Balance transfers must be completed within 4 months of account opening.
• There is a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater
• Get free access to your FICO® Score online.
• With Citi Entertainment®, get special access to purchase tickets to thousands of events, including concerts, sporting events, dining experiences and more.
• Shop with confidence knowing that you have dependable protection benefits, including $0 Liability on Unauthorized Purchases and Citi® Identity Theft Solutions.
• The standard variable APR for Citi Flex Plan is 14.74% - 24.74%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.

3. Apply for a card and request a balance transfer

Once you’ve found the perfect card, it’s time to submit your application.

Fill out an application online or through the mail, and include balance transfer amounts you wish to make. Be ready to provide your account numbers.

The exact amount you can transfer is determined once your application is approved.

Your new card provider transfers the balances on your behalf upon approval, up to the stated limit. It takes into account the transfer fees, and if the card has an annual fee. These fees affect your total transfer limit. It usually takes 7 to 15 days for a balance transfer to go through, so make sure to pay the minimum monthly payment on your old card until your transfer is complete.

4. Keep paying your old card until your transfer clears.

While you’re waiting for your balance transfer to be approved, continue making payments on your account to avoid fees and interest and a potential hit on your credit score.

Once you receive notification that your balance has been transferred, reach out to your bank to confirm. Before you stop making payments on your old card, check the balance statement; it should stand at zero.

5. Consider what to do with your old card

The logical option may seem like closing your old card. However, depending on how long it has been open, and if you used it responsibly, closing the account may affect your credit score.

Consider hanging on to your old card if it doesn’t have an annual fee. If the card does have an annual fee, weigh in the pros and cons of closing the card and whether the impact on your credit score is worth paying for it.

6. Start paying off your debt.

Once your balance transfer is complete, note how long your promotional APR lasts. If you have a balance after the APR expires, it starts accruing interest at the revert rate.

Try to make more than the minimum payment each month to repay the entire debt before the revert rate kicks in. Consider making financial changes or plans to help you clear off this debt. Two common helpful tips include:

• Track your finances.
  Part of your balance transfer goals should be getting a complete handle on your finances. Understand where your money is coming from, where it’s going and how you can move this money around to best serve you.
• Creating a budget.
  If you haven’t been much on budgeting up until the balance transfer, now might be the time to start. A budget can keep your spending in line during your balance transfer period and ensure you meet each monthly payment.

And if necessary, seek free help for managing your debt, such as our credit card repayment calculator. A balance transfer may buy you some interest-free time to repay your balance and ultimately save you money. With some discipline and commitment, you can be debt-free faster than you thought.

What happens if I don’t pay off my balance before the 0% introductory APR expires?

Any remaining balance will start accruing interest at a higher interest rate — also called the ongoing APR. That’s why it’s usually a good idea to pay off your balance before your 0% intro APR period expires.

How to transfer your balance after you apply for and receive your card

If you submitted your application without making any balance transfer requests, you can usually request a transfer after approval. Do this in either online or over the phone.

Try to complete the transfer as soon as possible. If you wait longer than 60 days, you may lose your promotional APR.

If you don’t receive an immediate decision on your credit card, you’ll typically need to wait seven to 10 business days to hear back. If you still haven’t received word after this time, contact the bank to find out if there’s an issue. You may be asked to provide additional information.

How to do a balance transfer by phone

1. Call the number on the back of your card.
2. Tell the representative that you wish to make a balance transfer.
3. Give pertinent information to the representative, including the details about your other issuer and the balance you want to transfer.
4. Confirm details of your balance transfer with the representative.

How to do a balance transfer online

1. Sign up for online banking after you receive your card.
2. Log in to your online account and navigate to the balance transfer section.
3. If necessary, choose a balance transfer option offered to you.
4. Enter details of your balance transfer, including information about your other issuer and the amount you want to transfer.

Card providers that offer the promotional balance transfer after application

Bottom line

Applying for a balance transfer card can be your first step to getting yourself out of debt. Consider the promotional APR period, transfer fee and the card’s annual fee when comparing your balance transfer options.

Compare balance transfer credit cards

You’ll mainly want to compare balance transfer cards on factors such as intro APR and length of the promotional interest rate. However, you should also keep in mind that card providers don’t allow balance transfers between cards they issue. So if you have a Citi card, you won’t be able to transfer your debt to another Citi card.

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Name	Product	Amount saved	Balance transfer APR	Balance transfer fee	Recommended minimum credit score	Filter values
Citi® Diamond Preferred® Card			0% intro for the first 18 months (then 14.74% to 24.74% variable)	$5 or 3% of the transaction, whichever is greater	670		An impressive 18 months intro APR on balance transfers and purchases, as well as no annual fee make this one of the top 0% APR cards available.	Apply now View details	Compare	loading Fetching your data...
Citi® Double Cash Card			0% intro for the first 18 months (then 13.99% to 23.99% variable)	$5 or 3% of the transaction, whichever is greater	670		Get a strong 18 month 0% intro APR on balance transfers AND up to 2% back. This is a rare card that offers both rewards and balance transfers.	Apply now View details	Compare	loading Fetching your data...
TD Cash Credit Card			0% intro for the first 15 months (then 12.99%, 17.99% or 22.99% variable)	$5 or 3% of the transaction, whichever is greater	680		3% on dining and 2% on groceries make this a valuable card for food purchases. Available in: CT, DC, DE, FL, MA, MD, ME, NC, NH, NJ, NY, PA, RI, SC, VA, VT	Apply now View details	Compare	loading Fetching your data...

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