Does a balance transfer actually save you money?
A balance transfer moves your debt to a credit card with a low or 0% intro interest rate, so more of each payment goes to the balance instead of interest. It usually costs a fee of around 3% up front, so whether it is worth it depends on the fee, the intro length, and how fast you pay. Put your numbers in below and see. Nothing is sent anywhere. The math runs in your browser.
Stay Put, or Transfer?
Example numbers. Edit them with your own. After the intro period, any balance left is charged your current APR. Nothing is sent anywhere; this runs in your browser.
$ 0 of interest either way.
You clear it sooner after the transfer.
Interest if you stay put.
Fee plus interest if you transfer.
You usually cannot transfer a balance between 2 credit cards from the same credit card company.
Before you apply, confirm the 0% interest rate covers transferred balances, not only new purchases, and how long it lasts.
How I Calculated This
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Is a balance transfer worth it?
It is worth it when the interest you save is more than the transfer fee. On a $ 6,000 balance at 22% APR paying $ 250 a month, moving to a 0% credit card for 18 months with a 3% fee saves roughly $ 1,669 in interest after the $ 180 fee, and clears the balance a few months sooner. If you pay slowly or the intro period is short, the fee can eat the savings. The calculator above compares both for your own numbers.
How does the transfer fee work?
Most credit cards charge a one-time fee of about 3% to 5% of the amount you move, added to your new balance. So a $ 6,000 transfer at 3% starts you at $ 6,180. That fee is real money, which is why the tool counts it against the interest you save, not off to the side.
What happens when the 0% period ends?
Any balance left when the intro period ends starts charging the go-to rate, which is often close to what you pay now. The win comes from clearing as much as you can while the rate is 0%. Pay the whole balance off inside the intro window and you owe no interest at all, just the fee. When you are ready to build a plan around it, the free course walks you through it step by step.