When you’re paying down credit card debt, interest can make progress feel slow. A balance transfer could give you some breathing room by moving your balance to a card with a lower interest rate. But does that mean it will save you money?
A credit card balance transfer can be worth it when the interest you save exceeds the transfer fee and other costs. Your current rate, the new card’s terms, and how quickly you can pay off the balance all affect the answer. Our balance transfer calculator below can help you compare the numbers before you make a move.
A balance transfer moves debt from one credit card to another. The goal is usually to take advantage of a lower annual percentage rate (APR), which can reduce interest charges while you repay what you owe.
Some offers include a low or 0% introductory APR for a limited time. After that promotional period ends, the card’s regular balance transfer APR applies to any remaining balance. Review both rates so you understand the potential cost over your full repayment timeline.
Transferring a balance doesn’t erase your debt. It changes where you owe it—and potentially how much it costs to pay it back.
A lower advertised rate is a starting point. These factors can help you decide whether an offer fits your situation.
A balance transfer may include an upfront fee—even when the introductory APR is 0%. That fee adds to the cost of moving your debt, so include it when comparing offers.
For example, transferring $5,000 with a 3% transfer fee would cost $150. If the fee is added to your new balance, you would start with $5,150 to repay.
The transfer makes financial sense only if the interest you avoid exceeds that fee, plus any other added costs. If you could pay off your existing card very soon, you might save little or nothing by transferring.
A promotional rate is most useful when you know how you’ll use the time it gives you.
Suppose you transfer that $5,000 balance, add a $150 fee, and receive a 0% promotional APR for 15 months. Assuming the fee also receives the 0% rate, you make no new charges, and you have 15 full monthly payments available, you would need to pay approximately $344 per month to clear the balance before the promotion ends.
That’s your payoff target—not necessarily the minimum payment shown on your statement.
If the target doesn’t fit your budget, calculate how much you would still owe when the regular APR begins. A transfer could still save you money, but you’ll need to account for interest after the promotional period.
Moving a balance can free up available credit on your original card. Before transferring, decide how you’ll keep that available credit from turning into another balance.
If you continue charging purchases to the old card while paying off the new one, you could end up with more debt and two payments to manage. Pair the transfer with a spending plan that supports your payoff goal.
Read the full offer and compare these details:
Offers can have separate deadlines for completing a transfer and using the promotional rate. Confirm the dates before building your repayment plan.
Once you’ve compared the costs and chosen an offer, put your repayment plan into action.
A balance transfer can be a useful way to reduce interest costs and make faster progress toward paying off debt. The strongest offer for you is one whose total cost is lower and whose repayment plan fits your budget.
Start with the calculator below, compare the fees and rates, and choose a monthly payment you can sustain. Knowing the numbers can help you turn a lower rate into a clear path toward paying off your balance.