What is a balance transfer on a credit card?

A balance transfer moves an existing credit card balance to a different card — often one offering a low or 0% promotional APR — so you pay less interest while you pay down the debt. The new card typically charges a transfer fee.

How a balance transfer works

When you do a balance transfer, you ask a new (or existing) issuer to pay off the balance on another card. That amount moves to your new account along with any transfer fee, so you now owe the new issuer. Issuers let you initiate a transfer online, by phone, or with a balance-transfer check.

The appeal is the promotional APR — often 0% on transferred balances for 12 to 21 months. Under Regulation Z, that promotional rate must remain for at least six months unless you go more than 60 days past due.

Balance transfer fees

A balance transfer fee is charged even when a 0% promotional rate applies — the two are separate. The fee is typically a percentage of the amount transferred (or a fixed minimum, whichever is greater) and is added to your new balance. Review your card agreement for the exact figure before transferring.

What to watch out for

Promotional period end date — any remaining balance afterward converts to the standard APR.
New purchases may not qualify — your agreement controls whether new purchases get the promo rate; many don't.
60-day late rule — one payment more than 60 days late can end the promotional rate on all balances.
Credit limit cap — you can only transfer up to the available credit on the receiving card.

What the rules say

A balance transfer fee can be charged even on a 0% promotional offer — the fee and the promotional rate are legally separate. — CFPB — Balance transfer fees
Under Regulation Z, a promotional balance-transfer rate must stay in effect at least six months unless the cardholder is more than 60 days late. — CFPB
The CFPB defines a balance transfer as moving a balance via a transfer check or by contacting the issuer to transfer electronically or by phone. — CFPB — Credit Cards Key Terms

Key takeaways

A balance transfer moves existing card debt to a new card — ideally one with a lower promotional APR.
A transfer fee applies even on 0% offers; it's typically a percentage of the amount moved.
The promotional rate must last at least six months by law, but a 60-day late payment can end it early.
Any remaining balance after the promotional period reverts to the standard APR.