A balance transfer moves existing credit card debt to a new card — usually to take advantage of a 0% introductory interest rate. Done right, it can save you hundreds and help you pay off debt significantly faster.
How it works
You apply for a card offering 0% intro APR on balance transfers — typically for 12 to 21 months. You transfer your existing debt to the new card. During the promotional period, you pay zero interest on that balance. Every payment goes entirely toward reducing what you owe instead of mostly covering interest charges.
The math that makes it worth it
Say you have $4,000 on a card at 22% APR. At minimum payments, you’d pay roughly $1,800 in interest before it’s cleared. Transfer that balance to a 0% card with an 18-month promotional period, pay $222/month — same total payment — and you pay it off completely with zero interest. You save the entire $1,800.
The catch: balance transfer fees
Most cards charge a 3–5% fee on the transferred amount. On $4,000 that’s $120–$200 upfront. Still worth it compared to months of high-interest payments — but factor it into the math before you transfer.
Best balance transfer cards right now
- Citi Simplicity: Up to 21 months at 0%, no annual fee, 3% transfer fee
- Wells Fargo Reflect: Up to 21 months at 0%, no annual fee
- Chase Slate Edge: 18 months at 0%, no annual fee, 3% transfer fee
The one rule that makes it work
Divide the transferred balance by the number of months in the promotional period and pay exactly that amount every month. When the 0% period ends, any remaining balance gets charged the regular APR — often 20%+. Don’t use the new card for purchases during payoff. Stick to the plan and you’ll come out completely ahead.