0% for 12–21 months
Balance transfer strategy
A balance transfer makes financial sense when the transfer fee (typically 3-5% of balance) is less than the interest you'd pay during the promotional period at your existing rate. Break-even formula: existing rate × payoff months ÷ fee percentage. The strategy only works if you actually pay off the balance during the 0% promo window — otherwise the regaining APR wipes out the savings.
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Try calculatorKey takeaways
04 · ideas- Transfer fee is typically 3–5% of balance
- Break-even: high rate × months ÷ fee %
- Only works if you pay it off during promo period
- Hard inquiry affects credit score temporarily
A balance transfer moves debt from a high-interest card to a new card with a 0% promotional rate — typically for 12–21 months.
When it works: You have $5,000–$20,000 in credit card debt at 20%+ and can pay it off (or most of it) within the promo period.
The catch: Transfer fees of 3–5% apply upfront. After the promo period ends, the regular rate (usually 25–30%) kicks in on any remaining balance.
Golden rule: Only do a balance transfer if you have a concrete plan to pay it off before the promotional period ends.