Balance Transfer Credit Cards: How to Pay Off Debt at 0% Interest

If you're carrying credit card debt at 20–29% APR, a balance transfer could let you pay it off at 0% interest for 12–21 months. On a $5,000 balance, that's $1,000+ in interest savings. But there are traps that can wipe out those savings if you're not careful.

How a Balance Transfer Works

You apply for a new credit card that offers a 0% introductory APR on balance transfers. You then transfer your existing high-interest debt to the new card. For the intro period (typically 12–21 months), no interest accrues on the transferred balance. After the intro period, the regular APR kicks in — usually 20–29%.

Best Balance Transfer Cards (2025)

• Citi Diamond Preferred: 0% for 21 months, 3% transfer fee
• Wells Fargo Reflect: 0% for 21 months, 3% transfer fee
• Chase Slate Edge: 0% for 18 months, intro $0 transfer fee
• Discover it Balance Transfer: 0% for 18 months, 3% transfer fee

The Balance Transfer Fee

Most cards charge a 3–5% balance transfer fee upfront. On a $5,000 balance, that's $150–$250. Even with this fee, you'll save money if you'd otherwise pay months of 20%+ interest. Example: $5,000 at 22% APR for 18 months = $1,650 in interest. Transfer fee = $150. Net savings = $1,500.

The 4 Rules for Success

1. 1Calculate the payoff amount: divide your balance by the number of 0% months and pay that amount each month — no exceptions
2. 2Set up autopay: a single late payment can void your 0% promotional rate instantly
3. 3Stop using the old card: don't add new charges during the payoff period
4. 4Don't use the new card for purchases: new purchases typically aren't covered by the 0% rate

Who Qualifies?

You generally need a credit score of 670+ (good credit) to qualify for the best balance transfer offers. The new card issuer won't allow you to transfer balances from their own cards — you need to transfer from a different bank's card.

Balance Transfer vs. Personal Loan

For debt you can't pay off in 12–21 months, a personal loan might be better. Personal loans offer fixed rates (often 8–18% for good credit), fixed terms, and no surprise rate spikes. A balance transfer wins if you can realistically pay the balance in the promotional window. A personal loan is better for larger debt or longer timelines.