Balance transfers can give you breathing room on high-interest debt, but promotional rates are less common than they were a few years ago. Plus, borrowers who qualify for a balance transfer may not get a credit limit high enough to move all of their high-interest debt.
[Read: Best Credit Cards]
Promotional APRs Are Harder to Rely On
According to data from the Federal Reserve Bank of Philadelphia, less than 12% of large-bank credit card accounts had promotional APRs in 2025 — the lowest percentage since 2021. The average purchase APR for general-purpose cards is 24.1%.
Promotional rates, such as 0% APR for purchases and/or balance transfers, are reaching a smaller share of accounts. The Fed report doesn’t explain why promotional rates reached fewer accounts, but offers typically depend on applicant credit scores, income, credit history and other factors.
“The best offers tend to go to borrowers with strong credit and low balances based on their credit limit,” says Paige Wingler, vice president of consumer lending at Skyla Federal Credit Union.
[Read: 0% Introductory APR Credit Cards]
Borrowers Who Need a Balance Transfer Most May Be Left Out
“The relief chases the people who need it least,” says Anupam Satyasheel, founder and CEO of Occams Advisory, a global professional and business advisory firm.
Though there’s no universal minimum credit score to get approved for a balance transfer card, strong credit helps. High credit utilization can lower your credit score and signal that you’re overextended. Recent late payments, high balances relative to your income or multiple recent applications could further lower your chances of approval.
A Low Credit Limit May Undermine Balance Transfers
Getting approved for a balance transfer card doesn’t solve the problem of high-interest debt if the credit limit isn’t high enough to cover what you owe. Approval for a balance transfer card with a limit that’s lower than what you need offers only partial relief.
If you have $10,000 in high-interest debt, getting approved for a new card with a $5,000 limit means you can only transfer part of the debt — and the balance transfer fee typically counts against the credit limit.
A partial transfer can offer interest savings as you pay off the balance, but it provides a less clear path to debt payoff. With high-interest debt left on your original card, you’d still accrue interest on the remaining balance and have two payments to manage.
If you don’t pay off the transferred balance before the 0% promotional period expires, you could have balances accruing interest at high rates on both cards.
Credit utilization is also a concern. Transferring up to the balance transfer card’s limit means you’d max it out, which can negatively affect your credit utilization and lower your credit score until you pay down the balance. Keep this credit score impact in mind if you’re planning on applying for any major loans anytime soon, such as an auto loan or mortgage.
But a partial balance transfer can still be worth doing if it saves you interest.
[Read: High Limit Credit Cards]
Do the Math Before Transferring a Balance
Accepting a balance transfer offer usually requires paying a fee, typically 3% to 5% of the amount transferred. That’s usually much less than the interest you’d pay if you left the balance on a high-interest card, but it’s worth doing the math.
For example, transferring $5,000 with a 5% fee would have a total balance transfer of $5,250. If you didn’t transfer the $5,000 balance and paid $300 per month at the average 24.1% APR, it would take you 21 months to pay it off and cost $1,165 in interest.
That same $5,000 balance (plus the 5% transfer fee of $250) could be paid off interest-free within 18 months with $300 payments. That saves months of payments and the interest.
Also calculate how much you can pay off before the 0% promotional period ends. If you can’t pay it all off before interest applies, don’t assume another balance transfer offer will be available later.
“Calculate the monthly payment required to eliminate the debt within the introductory period, then make that payment consistently,” says Regina McCann Hess, certified financial planner and president of Forge Wealth Management. Your budget should also accommodate paying any remaining balance on your original card.
Alternatives to Balance Transfer Cards
— Ask the issuer about hardship assistance, such as a temporary APR reduction, lower monthly payments or a hardship repayment plan.
— Nonprofit credit counseling can review your full financial situation and may recommend a debt management plan to combine payments and potentially reduce interest rates.
— A fixed-rate debt consolidation loan can provide a defined monthly payment and a set payoff date, often at a lower APR than credit cards.
— Use the debt snowball (paying off lowest-balance cards first) or debt avalanche (paying highest-interest debts first) method to manage debt without opening new accounts.
“A balance transfer can be an effective tool, but it’s only successful if it’s paired with a repayment plan and a commitment to avoid adding new debt,” says McCann Hess.
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Balance Transfers Are Getting Harder to Use as a Debt Escape Route originally appeared on usnews.com
