Question 1

Is a balance transfer worth it?

Accepted Answer

A balance transfer is usually worth it if the interest you save exceeds the transfer fee and you can pay off the balance before the intro period ends. For example, a $5,000 balance at 22% APR paid off in 15 months costs about $845 in interest. Transferring to a 0% card with a 3% fee ($150) saves roughly $695. The math rarely works if you will not change the spending habit that created the balance.

Question 2

What happens if I don't pay off the balance before the intro period ends?

Accepted Answer

Once the intro period ends, the remaining balance starts accruing interest at the card's standard APR, which is often higher than 20%. Most cards do not charge deferred interest (retroactively), but some do — read the terms carefully. This calculator assumes the standard APR equals your current card's APR after the intro period ends.

Question 3

Does a balance transfer hurt my credit score?

Accepted Answer

A balance transfer can cause a small, short-term dip from the new-card hard inquiry, but usually helps your credit over time by lowering your utilization ratio (especially if you keep the old card open). Paying the new balance down quickly improves your score further. Avoid closing old cards immediately — they contribute to your length of credit history.

Consideration	Why it matters
Your credit score	Most 0% offers need 670+; higher scores get longer intro periods and lower fees.
Transfer fee	Typically 3-5% of the balance. Subtract this from expected interest savings to see the real benefit.
Intro period length	Most offers run 12-21 months. Aim to pay off the full balance before it ends.
Monthly payment discipline	If you can't commit to the payment that clears it in time, the revert rate erases most of the savings.
Revert (go-to) APR	Check what rate kicks in after the intro period — often as high as 22-29%.
Avoid new purchases	New purchases on a BT card often accrue interest immediately and payments apply to the lowest-rate balance first.

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Is a Balance Transfer Worth It?

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