Is a Balance Transfer Worth It? Fees, Promo Periods and the Catch
The fee comes first
Most transfers charge a fee, often 3% to 5% of the amount moved, added to the new balance. A $6,000 transfer with a 3% fee starts at $6,180.
Plan for the end of the promo
Divide the new balance by the promo months to find the payment that clears it in time. For $6,180 over 15 months that is $412 a month. Paying $300 a month instead leaves $1,680 when the promo ends, which then accrues interest at the card's regular rate.
Some store cards use deferred interest instead of a true 0% rate. If any balance is left at the end, interest for the whole promo period can be added. Read the offer terms before you transfer.
When it is worth it
A transfer usually helps when the interest you avoid is clearly more than the fee and you can stop adding new charges. Run both scenarios in the balance transfer calculator.
Try the Balance Transfer Calculator
Educational information, not financial advice. Check your card or loan agreement for your exact terms.