How do I know if a balance transfer will save me money?
Simple test: (Transfer fee) < (Interest you'd pay keeping the current card). Example: $8,500 balance at 24.99%, paying $250/month. Interest over 21 months = ~$2,100. Transfer fee at 3% = $255. Net savings = $1,845. Use our calculator to get the exact numbers for your situation. The longer the intro period and higher your current APR, the more likely a transfer saves money.
What's the catch with 0% balance transfer cards?
Several common pitfalls: (1) Transfer fee (3–5% of balance) — often overlooked. (2) New purchases often don't get 0% — they accrue interest immediately. (3) Minimum payments may not clear the balance by promo end — leaving a large balance at full APR. (4) Missing a payment can trigger penalty APR and kill the promo rate. (5) The card's standard APR after promo is often 20–29%. (6) You may need excellent credit to qualify.
Should I close my old card after a balance transfer?
Generally no — closing a card hurts your credit score by reducing available credit (increases utilization) and shortening credit history. Keep the old card open but put it away or cut it up. The exception: if having the old card tempts you to run up new debt, closing it may be worth the credit hit. Most financial advisors recommend keeping old cards open with a zero or near-zero balance.
Can I do a balance transfer from one card to another at the same bank?
No — banks generally don't allow you to transfer a balance from one of their cards to another. You must transfer to a card from a different issuer. Chase won't accept a Chase balance. Citi won't accept a Citi balance. You need to apply for a new card at a different bank and transfer the old balance to the new card.
What is the best strategy for paying off a balance transfer?
Divide the total transferred balance (including fee) by the number of intro months and pay at least that amount every month — even if the minimum due is lower. Set up autopay for this amount immediately after the transfer. Do not use the new card for purchases. Put the new card somewhere inconvenient (a drawer, frozen in a block of ice). If possible, increase the payment beyond the minimum to create a buffer in case of income disruption near the promo deadline.
Is a balance transfer better than a personal loan for debt?
Depends on your situation. Balance transfer wins when: you have good credit (qualify for 0% offer), the balance can be paid off in the intro period, and the transfer fee is less than personal loan interest. Personal loan wins when: you can't qualify for 0% offers, you need more time than intro periods offer, or you need the discipline of fixed monthly payments with a defined end date. Personal loans typically have rates of 12–36% — much lower than credit cards but higher than a 0% promo.