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Transferring Balance to a New Credit Card Step-by-Step

Posted on Apr 7, 2023

Updated on Apr 7, 2023

The content is accurate at the time of publication and is subject to change.

This content is not provided by Citi. Any opinions, analyses, reviews or recommendations expressed here are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by the Citi.

There's no better way to save big dollars if you're carrying a large balance on a high-APR card than transferring that balance. Whether you take advantage of a low APR for six months or a 0% introductory APR offer for 18 months, you're sure to save something.

Best credit card offers for transferring balance

There are many balance transfer card offers available, so pay close attention to the length of zero interest on balance transfers the cards offer. Most range between 12 and 21 months, but you can look out for promotions spanning longer periods, which give extra time to pay off the debt and cut the amount you need to pay monthly. Compare offers from our partners below to find the best credit card for you:

When it comes to balance transfers, it's important to understand all the terms and conditions before making a move. Knowing how to do a balance transfer can help you consolidate your credit card debt while saving money on interest charges.

Credit cards with the longest 0% intro APR on balance transfers

How to do a balance transfer step-by-step

Completing a balance transfer might be easier than you think. Here's a quick rundown on how to make a balance transfer as smooth as possible:

1. Gather information

Decide which balance you'd like to transfer and gather all the information about that account: the account number, the name and address of the card issuer, the address where you send payments, and the amount you want to transfer. If you're transferring debt from multiple accounts, you'll need to collect details for each.

2. Compare your top picks

Choose a balance transfer credit card with a great low or zero-interest deal. Read through the terms and conditions and consider factors like the balance transfer fee and the ongoing APR that will apply after the introductory period ends.

3. Apply for a new credit card

Apply for the new card by filling out an application online. It only takes a few clicks to apply online in the most convenient way. Have your personal info handy, as well as the information about the balance you are going to transfer. Once approved, you can request your balance transfer.

4. Initiate a balance transfer

Some card issuers allow you to apply for the balance transfer at the same time you apply for the new credit card. If applying online, there is usually a separate section where you can enter your existing balance information if this is the case. This option is good when the amount you want to transfer is small because you don't know what your credit limit is until you get approved for the card. Note, if you request to transfer more than the available limit, the balance transfer will more likely be declined.

5. Understand the terms and conditions

If you weren't able to apply for the transfer at the same time you applied for your new card, fill out an application as soon as you are approved and receive the new card. There is usually a time limit for making balance transfers, which may be anywhere from the first 30 days to four months after the account opening. Check with your bank and find out how much time you have to initiate a balance transfer after account opening.

6. Do a balance transfer fee math

Most balance transfer cards charge a balance transfer fee, usually 3% to 5% of the amount being transferred. This expense will have to be paid upfront on the amount transferred. Some cards don't charge a fee or will waive it during a promotional offer. Always remember to factor in a balance transfer fee when deciding whether to do a balance transfer. It may make more sense to transfer one large balance rather than several small ones, depending on how much the fee is.

7. Make timely payments

Continue making on-time payments to your old card until you get a confirmation that the transfer has posted. Usually, the transfer will post within one billing cycle, but it may take up to six weeks, so it's important not to miss a payment. If your payment ends up crossing with the transfer, and you overpay the card, your old card issuer will refund you. Better to overpay than risk a late payment.

8. Don't close your old credit card accounts

Do not rush into closing your old credit card account, even if it has a zero balance. Closing accounts shortens your credit history and lowers your total available credit, which can hurt your credit score. Eventually, you may not want to close your card, especially if it doesn't have annual fees.

9. Pay off your balance before the promotional period ends

Most balance transfer offers come with a limited-time introductory APR. To save as much money as possible on interest charges, pay off as much of your new balance as you can before the promotional rate expires. Once your promotional period is over, the regular APR for balance transfers will apply. If your card offers an introductory 0 ARR on balance transfers for 15 to 21 months, try to pay off your balance before the introductory rate ends for maximum savings.

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Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions. All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.