Balance Transfer

Banking & Credit

A balance transfer moves credit card debt from a high-interest card to a card offering a 0% promotional APR for 12-21 months. The new card typically charges a 3-5% transfer fee. The math: a $10,000 balance at 22% APR costs $1,400 in interest annually; transferring to a 0% card with a 3% fee costs $300 once. The strategy works only if you pay off the balance before the promo expires — otherwise you face the new card's standard APR (often 20-30%). Best transfer cards: Citi Diamond Preferred, Wells Fargo Reflect, BankAmericard.