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A balance transfer card could help you pay down your debt. Read on to find out how these cards work. [[{“value”:”

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Opening a new credit card account usually isn’t a good idea if your finances aren’t in a great place. However, there is one type of credit card that can help you get out of debt if you use it correctly.

With a good balance transfer card, you can move your credit card balance and enjoy a low introductory rate, often 0%, which can help you pay down your balance interest-free. Here’s how to do it and what you should know before choosing a card.

How a balance transfer card could improve your finances

Balance transfer cards are credit cards that offer low introductory rates for a set period of time, usually between 12 and 21 months. Most of them charge a transfer fee between 3% to 5% of the amount you move onto the new card. While the fee will cause your balance to increase, it could benefit you over the long term as you make payments with low or no interest.

For example, the average American household with credit card debt has a balance of $6,065, and the average APR is about 23.4%. Let’s compare two scenarios, one with the original balance and high rate versus a transferred balance and a low intro rate.

If we move $6,065 to a balance transfer card with a 0% introductory rate, we might pay a 3% transfer fee of about $362, bringing the new balance to $6,427. Here’s how these two scenarios might play out:

Starting BalanceAPRMonthly PaymentPayoff TimeTotal Interest Paid$6,06523.4%$30626 months$1,637$6,4270% (for 21 months)$30621 months$0
Data source: Author’s calculations

If you open a balance transfer card using this scenario, you’d pay a $362 fee but avoid $1,637 in interest payments, saving you a total of $1,275! You’d also pay off your balance five months earlier. That could be a significant way to ease the burden of paying off your balance.

We’ve reviewed the best balance transfer cards for you. Click here to see which ones top our list.

How to decide if a balance transfer card is right for you

Balance transfer cards aren’t for everyone, so before you apply for one, you should consider these factors.

1. Weigh the fee

First, as mentioned above, you’ll likely have to pay a transfer fee to move your balance. Most fees will be between 3% and 5%. This means a $5,000 balance with a 5% transfer fee will become $5,250. Do the math beforehand to ensure you’re comfortable with your new balance. Also, most of these cards won’t charge you an annual fee, but you should check first just to make sure.

2. Check the rewards

Some balance transfer cards earn rewards, like cash back on purchases. If you see a few cards with similar terms but one has generous cash back rewards, it might be worth picking that one over a card that doesn’t offer any. After all, you may want to use the card for purchases once you pay off your existing balance, so pick one that fits your needs.

Not all rewards cards are created equal. Click here to see top-rated cash back rewards cards.

3. Consider the rate

While many balance transfer cards have 0% introductory APRs, not all do. And even if you get a 0% intro APR, you should also consider the card’s go-to rate after the introductory period ends. Ideally, your balance will be paid off before then, but it’s wise to look at how high your APR might be once the introductory rate expires.

The most important thing to remember with balance transfer cards is that you shouldn’t put any new purchases on the card. To use your card effectively, don’t charge more to it while paying down your balance. This will help you pay off your balance faster and ideally eliminate your debt before the higher go-to APR kicks in.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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