How balance transfers work: fees, intro APRs and the fine print

How does a balance transfer work?

You ask the new card's issuer to pay off a balance on another card. It sends the payment and adds that amount, plus the fee, to your new balance.

1. Request the transfer Give the new issuer the account number and the amount, online, by phone or with a balance transfer check ^[11].
2. Keep paying the old card A transfer can take from a couple of days to several weeks, so keep making payments on the old account until it posts ^[9].
3. Check what moved The new issuer may move only the part that fits your credit limit, and the fee counts against that limit ^[7].
4. Pay it down before the intro period ends Divide the new balance, fee included, by the months left in the intro period to see the monthly payment that clears it in time.

Intro offers often apply only to transfers made within a set window after the account opens, so check the card's terms before you wait ^[7].

How much does a balance transfer cost?

The fee is typically 3% to 5% of the amount moved, often with a $5 or $10 minimum, and it's added to the balance you transfer.

The CFPB says the fee is usually a percentage of the amount you transfer or a fixed amount, whichever is more ^[2], and that issuers can charge it even on a 0% offer ^[1]. Bankrate puts the typical range at 3% to 5% with a minimum of $5 or $10, and Credit Karma gives the same range ^[8][9]. On a $5,000 transfer, 3% is $150 and 5% is $250.

The fee isn't paid separately. It goes onto the new balance, so a $5,000 transfer with a 3% fee starts at $5,150 ^[8]. Other card fees are covered in credit card fees.

How long does a balance transfer intro rate last?

At least six months by law, unless you're more than 60 days late. The issuer must tell you up front how long it lasts and the rate after.

Regulation Z lets an issuer raise a rate when a promotional period ends only if that period was six months or longer and disclosed in writing before it began ^[6]. The CFPB adds that the issuer has to tell you the rate that applies afterward, and a variable intro rate can still move if its index changes ^[3]. The longer intro periods you'll see in card ads come from issuers, not from the rule.

Where do my payments go if I have a transfer and new purchases?

Anything above the minimum goes to the balance with the highest APR first. That's usually new purchases, not the 0% transfer.

Regulation Z requires the issuer to apply the amount above the minimum to the highest-APR balance first, then the rest in descending order of rate ^[4]. The CFPB puts it the same way for bills with several APRs ^[5]. The rule covers only the amount above the minimum ^[4].

Can I transfer a balance between two cards from the same bank?

Usually not. Chase, for one, says transfers between cards from the same bank, including most co-branded cards, are generally not allowed.

That's Chase's own statement on its balance transfer page ^[7]. Credit Karma says the same applies across issuers in general ^[9]. Each issuer sets this in its terms, so check before you apply for a card meant to take the transfer.

What happens when the balance transfer intro period ends?

Any balance left starts accruing interest at the card's regular balance transfer rate, and your payments can go up.

Interest on whatever remains starts at the regular rate ^[9], and the CFPB warns that the higher rate can raise your payment ^[2]. A true 0% intro APR doesn't bill you for the intro months afterward. Offers that do are deferred interest, explained in 0% intro APR vs deferred interest.

Paying more than 60 days late is the other way to lose the deal. The CFPB says the issuer can then raise the rate on all balances, including the transferred one ^[2]. If that happens, six on-time minimum payments in a row require the issuer to restore the earlier rate on those balances ^[6].