Credit Card Balance Transfer Calculator | Bankrate

What is a balance transfer and why should I use one?

balance transfer occurs when you move debt from one account to another, normally to one with lower interest rates, and can be the perfect option for those looking to reorganize their debt, pay off a medical bill or student loan and more. By completing a balance transfer, you’ll end up paying less interest each month or no interest at all, depending on if your card comes with an introductory 0% APR offer on balance transfers. Paying less in interest means you’ll end up saving a portion of money each month that would have normally gone to your issuer (a balance transfer fee usually applies).

Using our calculator to find the perfect balance transfer offer

To choose the best balance transfer card for your lifestyle, decide how much time you’ll need to pay off your debt by using our calculator.

Step 1: Find out how much you owe

You can pinpoint the amount of money you owe by looking at a recent credit card statement. Once you have your statement, identify both your current outstanding balance and interest rate. Say you found out you owed $3,000 on a Chase Sapphire Preferred® Card with an variable APR of 21.24% – 28.24%. Using our Credit Card Payoff Calculator , you’d need to pay $200 a month for 18 months in order to pay off your debt.

Step 2: Choose a card based on what you find

We recommend a card with an introductory 0% interest offer of 15 months or longer. You’ll also want to take into account any balance transfer fees, annual fees and the variable interest rate you’ll be charged after your introductory period ends. Continuing with our example, say you choose the Citi® Diamond Preferred® Card

Step 3: Enter your new card details

The Citi Diamond Preferred Card offers an introductory 0% APR on balance transfers for 21 months, then  17.99% – 28.74% variable APR. There’s a balance transfer fee minimum of $5 or 5% for each transfer, whichever is greater. If you continued to use the Chase Sapphire Preferred, you’d pay $200 a month for 18 months to erase that $3,000 balance, incurring $570 in interest charges along the way. If you transferred that balance to the Citi Diamond Preferred Card, you’d pay $142.86 a month for 21 months (plus a $150 balance transfer fee) and avoid interest charges entirely for that 21-month introductory period.

How to apply for a balance transfer card on Bankrate

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