How does a balance transfer work?

You apply for a new card with a 0% intro APR, transfer your existing high-APR balance to it, and pay it down during the intro window — typically 12-21 months.

Math the transfer fee (usually 3-5%) against your interest savings. On a $5,000 balance at 22% APR, a 15-month intro period saves roughly $1,400 in interest; a 3% transfer fee is $150 — net savings $1,250. For smaller balances or shorter intro periods, the fee can eat the savings. Plan to pay the balance to zero before the intro period ends — the ongoing APR will retroactively apply if specified in disclosure, or the residual balance will start accruing at the ongoing rate.

Reviewed by the ClearValue Editorial Team · Last updated 6/29/2026