Balance transfer card
A balance transfer card lets someone move existing card debt to another credit card, often with a promotional APR for a set period.
What this page covers
This explainer is designed to show what the option is, how the basic mechanics work, and which details people commonly compare before looking at providers, products, or tools.
- Plain-English steps for how balance transfer card works.
- A simple example that shows the moving parts without selecting a product.
- Comparison factors, calculators, and source links for deeper research.
How it works
A card issuer approves a new card or transfer offer with a credit limit and terms.
The existing balance is moved to the new card, usually with a balance transfer fee added to the balance.
The promotional APR applies for a limited period. Any remaining balance after that period usually moves to the regular APR.
Minimum payments are still required, and new purchases can have different interest treatment.
Simple example
A person transfers $5,000 from an existing card to a card with a 0% promotional APR and a 3% transfer fee.
This example does not include new purchases, late fees, penalty APRs, or any balance left after the promotional period.