Balance transfer
Moving a card balance from a high-rate account to a new card with a low or 0% promotional rate for a set window, typically in exchange for an upfront fee.
A balance transfer moves debt from a high-rate credit card to a new card offering a low or 0% promotional rate for a fixed window, commonly 12 to 21 months. The new issuer usually charges an upfront transfer fee of 3% to 5% of the amount moved.
The arithmetic often clears easily if two conditions hold. First, the transferred balance is actually paid off inside the promo window — dividing it by one fewer month than the promo length and setting that as the monthly payment is a standard way to build in slack. When the promo ends, any leftover balance begins accruing at the card's regular rate.
Second, the old card is not run back up. That $0 balance on the previous account is not new borrowing capacity; it is the same debt wearing a different account number. The most common way transfers fail is ending with both a new balance and a re-grown old one, plus the fee.
Plumb is financial education, not financial, investment, tax, or legal advice.