Balance transfers: do they help?

How moving a balance to a lower-rate card works, what it costs, and when it makes sense.

How it works

You move a high-interest balance to a card with a low or 0% introductory rate for a set period, so more of each payment goes to the balance.

What it costs

Most cards charge a balance transfer fee, often 3% to 5% of the amount moved. When the intro period ends, the regular rate applies to any remaining balance.

Credit effects

Applying for a new card usually means a hard inquiry and a new account. Over time, paying the balance down can lower your card use and help your score.

When it makes sense

It works best if you have a plan to pay off the balance before the intro period ends and you stop adding new charges.