Balance Transfer Credit Cards Explained: Stop Paying Interest Today
A 0% balance transfer card can save you hundreds in interest. Here's how they work — and the three mistakes that erase the savings.
Sarah ChenEditor-in-ChiefIf you carry credit card debt, a 0% balance transfer card is the single fastest way to stop the bleeding.
How it works
You move existing high-interest debt onto a new card that charges 0% interest for an intro period (typically 15–21 months). You pay a one-time fee of 3–5% of the transferred amount. Then every payment goes to principal.
The math
- $5,000 at 24% APR = $1,200/year in interest.
- Transfer to 0% for 18 months with a 3% fee ($150).
- Net savings: ~$1,650 over the promo period.
The three mistakes
- New purchases on the card. Those often aren’t covered by the 0% promo — they accrue interest immediately.
- Missing a payment. One missed payment can void the 0% rate.
- Not paying it off before the promo ends. The remaining balance snaps back to a high APR.
Have a payoff plan before you transfer. Set autopay. Cut up the card if you have to.
Updated July 19, 2026.
Primary sources
Rates, rules and figures in this article are drawn from the primary sources below. We refresh money pages quarterly — always confirm current terms with the issuer or regulator before acting.
This article is for informational purposes only and does not constitute financial advice. Always do your own research.