Balance Transfers Explained

A balance transfer moves debt from one card to another, usually to take advantage of a 0% or low intro APR for a set number of months. During that window, your payments go further because little or no interest accrues.

Watch the fee and the clock

Most transfers charge an upfront fee (commonly a percentage of the amount moved). And once the intro period ends, the standard APR applies to any remaining balance — so the goal is to clear the balance before then.

Make it work

Divide the balance by the number of intro months to find the monthly payment that clears it in time. Avoid new purchases on the transfer card unless they also receive the promotional rate.