Can You Keep Doing Balance Transfers to Pay Off Debt?

A balance transfer is a useful debt repayment strategy that allows you to move your credit card balance to a new card, often one that offers a lower introductory APR. A balance transfer can provide some breathing room in your budget and allow you to tackle your credit card debt more quickly since none of your money will go toward interest.

There’s no limit on the amount of balance transfers you can do — it’s possible to keep transferring your balance for years if you continue to qualify for new balance transfer cards. This strategy would help you avoid interest charges on existing debt but also comes with some downsides, including balance transfer fees and possibly a negative impact on your credit.

If you’re considering using multiple balance transfers to pay off your debt, make sure to read this article to learn the pros and cons, what to look for in a balance transfer card, and some alternatives to consider.

Can you keep transferring credit card balances?

Yes, you can keep transferring credit card balances as long as you qualify for new cards. There’s typically no requirement on how many times you can transfer a balance. This means you could have a potentially endless cycle of continuously transferring a balance from one credit card to another.

Not only are you allowed to continue transferring your credit card balance, but it’s often the most cost-effective solution for managing your credit card debt if it allows you to avoid paying the high interest rates credit cards often charge.

The only roadblock for multiple balance transfers is actually qualifying for the card. Depending on your credit score and how many other credit cards you’ve recently applied for, you may have trouble qualifying for new cards or high enough credit limits. Additionally, though balance transfers are often an effective tool for managing credit card debt, they may not make sense for every person or for every situation.

Reasons to transfer credit card balances

A balance transfer is a popular tool for paying off credit card debt, and for good reason. Let’s talk about a couple of reasons why a balance transfer might be the right choice for you.

More time to pay off credit card debt

The primary reason you might want to keep doing balance transfers is to give yourself more time to pay off credit card debt.

Balance transfer cards often have a 0% introductory APR offer on balance transfers for anywhere from six months to nearly two years. You wouldn’t have to worry about interest charges, and your entire monthly payment could go toward paying down your balance.

Unfortunately, if you’re dealing with a high credit card balance, the introductory 0% APR offer on your balance transfer card may not be quite enough to pay down your full balance. In that case, it may be worth applying for another balance transfer card.

For example, let’s say you open a balance transfer card for your $10,000 of credit card debt, and you have a 0% APR period of 12 months. During that time, you’re able to pay off $5,000. It’s an impressive amount to pay off in one year, but it’s not enough to cover your entire balance.

If you open another balance transfer card, you could extend your 0% intro APR period and pay off your full balance within the next 12 months.

Sure, you could simply keep making monthly payments on your existing card once interest kicks in. But as someone who has used balance transfers myself to pay off credit card debt, I can tell you that having your entire payment go toward your principal balance is far more impactful. The inconvenience of applying for another balance transfer card was a small price to pay for me to save thousands on interest (and years paying off my credit card balance).

Improved credit utilization

Your credit utilization ratio is how much credit you’re using of your total available credit expressed as a percentage. For example, if you have access to $10,000 of credit and have a total balance of $5,000, your credit utilization is 50%.

You typically want to stay below 30% of your credit utilization, or your credit score could go down. When determining your credit score, credit bureaus look at your total credit utilization across all your cards, as well as your credit utilization on each individual card.

Opening a new balance transfer credit card could improve your overall credit utilization because you would have more total available credit. It could also help improve the credit utilization of multiple credit cards if you transfer multiple balances to your new balance transfer card.

For example, you might have two credit cards:

• Credit card 1: Has a $5,000 credit limit and a $4,000 balance. That’s 80% credit utilization.
• Credit card 2: Has a $10,000 credit limit and a $6,000 balance. That’s 60% credit utilization.

Your total available credit is $15,000, and you’re using $10,000 of it. That’s about 67% credit utilization.

Let’s say you transfer both balances to a balance transfer credit card with a $20,000 card limit. Your two original credit cards would now have no credit utilization, and your overall credit utilization would be under 30% ($10,000 balance / $35,000 total credit = 0.2857).

Yes, your new credit card would have a 50% credit utilization because you’re using $10,000 of the $20,000 available. But your overall credit utilization and your per-card credit utilization have all improved, meaning your credit score is likely to improve as well.

Compare the best balance transfer cards for good credit.

Reasons not to transfer credit card balances

Though balance transfers can be effective, they aren’t right for everyone. Let’s talk about a few risks and downsides to consider before taking out another balance transfer credit card.

Balance transfer fees

Almost all balance transfers have fees, which are often 3% to 5% of the transfer amount, or a $5 to $10 minimum.

Here are a few examples of what that looks like:

• 3% fee on $5,000: $150 balance transfer fee
• 5% fee on $2,500: $125 balance transfer fee

It might not be worth doing multiple balance transfers if the amount you could potentially save on interest charges is less than what you have to pay in balance transfer fees. This could be the case if you have a small balance that you’re likely to pay off in the next few months.

Don’t automatically assume a balance transfer fee means you shouldn’t get a balance transfer, however. In the vast majority of cases, your interest savings will be more than your fee. You can use an online balance transfer calculator to run the numbers for yourself and decide if it’s a good idea.

Low credit score or other relevant factors

You typically need at least a good credit score of 670 on the FICO scoring model to qualify for credit cards with excellent balance transfer offers. If you don’t qualify for a balance transfer offer, you’ll have to find another solution for your credit card debt.

Unfortunately, you often don’t know until you apply whether you’re eligible for a card. The last thing you want is to have a negative impact on your credit score from applying without actually getting the balance transfer card.

Consider looking for cards that offer pre-qualification to help you see if you’ll qualify. Although prequalification isn’t a guarantee of final approval, it can at least give you an idea of whether you’re eligible.

Even if you have a good credit score, you may not qualify for a balance transfer card if you’ve previously applied for too many cards. For example, Chase has a well-known 5/24 rule, which states that you likely won’t qualify for a new Chase card if you’ve already signed up for five other credit cards within the past 24 months.

Cycle of debt

It could make sense to do continuous balance transfers if you aren’t able to completely pay off your debt during the first 0% intro APR promotional period. But it likely doesn’t make sense to continue doing balance transfers if it’s just a way to make minimum payments and just move your debt around without having to completely pay it off.

This could cause you more issues with debt down the road, especially if you’re opening multiple credit cards and have more access to credit. In many cases, it makes sense to simply take advantage of one balance transfer card and pay off your debt as much as possible during its introductory period.

If you struggle with overspending and worry you may simply rack up more credit card debt once you transfer your balance, it’s likely better to keep your balance where it is and address the root cause of your overspending first.

Negative impact to credit score

A balance transfer or multiple balance transfers with different credit cards could negatively impact your credit score. First, your credit score will temporarily go down due to the hard inquiry and new account on your credit report. Next, opening a new card will decrease your average length of credit history across all your accounts.

While neither of these factors are major contributors to your credit score, they can still have an impact, at least in the short term. If you think you may need to apply for other credit in the near future and need your credit score as high as possible, it’s probably best to avoid applying for a new balance transfer card.

How to find the best balance transfer credit card

If you’re considering a balance transfer to help you pay off your credit card debt, it’s important to shop around for a good deal. Here are some factors to consider when looking at balance transfer credit card offers:

Length of 0% intro APR period

The longer the 0% intro APR period, the more time you have to avoid interest charges on your transferred balance. And that’s potentially more time for you to pay off your debt before the promotional APR ends and the rates skyrocket.

It’s common for 0% intro APR periods to range from 12 to 18 months, though some go as low as six months, while others can be as long as 21 months.

The Wells Fargo Reflect^® Card(Rates and fees), for example, has one of the longest intro APR offers available, providing 0% intro APR for 21 months from account opening on qualifying balance transfers (then 17.74%, 24.24%, or 29.49% Variable).

Ideally, look for a card with a balance transfer period long enough for you to pay off your entire balance while the APR is at 0%. The longer your introductory 0% period, the less likely you’ll have to do another balance transfer once it’s over.

Here is our round-up of cards with the longest balance transfer periods.

Balance transfer fees

Balance transfer fees typically cost at least $5 to $10 minimum, or 3% to 5% of the transfer amount. In some cases, you might qualify for a lower transfer fee if you do a balance transfer soon after new account opening.

For example, the Chase Freedom Unlimited^® has a balance transfer fee of: $5 or 3% of the amount of each transfer, whichever is greater in the first 60 days. That’s one of the lower fees on the market, meaning you may be able to save a bit of money. After all, the less money you have to pay toward interest or fees, the more you can pay toward your credit card balance.

Annual fee

An annual fee is something you have to pay on certain credit cards each year to be a cardholder. Fortunately, many balance transfer credit cards have no annual fees. I would only recommend considering a card with an annual fee if the card offers plenty of other benefits that you want to continue taking advantage of after you pay off your balance.

Personally, I prefer to have dedicated cards for dedicated purposes. If I was applying for a balance transfer card myself, I would prioritize a long introductory 0% APR period and no annual fee. Then, I’d save an annual fee card for after I paid off my debt to get the best rewards card for my lifestyle.

Rewards

Not all balance transfer credit cards provide rewards, meaning you can’t use them to earn points, miles, or cash back. In fact, the cards with the longest introductory periods, such as the Wells Fargo Reflect^® Card(Rates and fees) or the Citi Simplicity^® Card(Rates and fees), don’t offer any rewards for your spending.

That being said, some balance transfer cards do offer valuable rewards that you earn on all eligible purchases. For example, the Chase Freedom Unlimited^® offers 6.5% cash back on travel purchased through Chase Travel℠, 4.5% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and 3% cash back on all other purchases (on up to $20,000 spent in the first year). After your first year or $20,000 spent, earn 5% cash back on travel purchased through Chase Travel℠, 3% cash back on drugstore purchases and dining at restaurants, including takeout and eligible delivery service and unlimited 1.5% cash back on all other purchases. It also has a 0% intro APR period on balance transfers for 15 months.

If you’re considering a balance transfer card with rewards, I wouldn’t worry about taking advantage of those rewards until you’ve paid off your balance. While you’re paying down your balance, don’t put any new purchases on the card. Then, once you’ve paid off your balance, you can start taking advantage of the card’s spending rewards. The last thing you want is for your balance to grow even larger.

Benefits

Certain balance transfer credit cards provide helpful benefits in addition to a 0% intro APR offer. A couple of popular examples that many cards offer are purchase protection and extended warranty protection. You may also be able to find cards that offer rental car insurance, travel insurance, and other perks.

While you can certainly consider these benefits when you’re choosing a balance transfer card, they shouldn’t be the most important factor, especially if it means sacrificing a longer introductory 0% APR period.

Compare balance transfer cards.

How to get the most out of your balance transfer

If you’re planning to use another balance transfer to tackle your credit card debt, it’s important to be strategic to ensure you get the most value from the card. Here are a few ways to get the most out of the card:

• Make a payment plan: You’ll get the most value from a balance transfer card if you can pay off the full balance within the 0% intro APR period. To figure out how to tackle your balance, divide your total transfer balance by the number of months you have a 0% APR. That will tell you how much you should pay per month.
• Avoid taking on new debt: Once you’ve completed your balance transfer, it’s important to avoid racking up new debt on your newly cleared credit card. Doing so will only maximize your debt problem and make it more difficult to pay off your debt in the future.
• Continue making your payments until the balance transfer is complete: Don’t stop making your credit card payments just because you’ve been approved for a balance transfer card. Continue making your normal payments until you’re certain the balance has been transferred to the new card. The last thing you want is to accidentally miss a payment on your old card and be hit with a late fee and mark on your credit report.

Alternatives to balance transfers

Though a balance transfer can sometimes be the right choice, it’s not right for every person or situation. Let’s talk about a few alternatives to consider:

• Personal loan: A personal loan for debt consolidation could be a great choice to help you pay off one or more credit cards. Unlike balance transfer cards, personal loans don’t have 0% APR offers. However, they have overall much lower rates than credit cards and have payment terms of several years rather than the shorter introductory periods on credit cards.

  Compare personal loans

• Home equity loan or line of credit (HELOC): If you own a home, home equity financing, such as a home equity loan or HELOC, could be a good choice to help you pay off your debt. Similar to taking out a personal loan, you would use your new loan to pay off your credit card debt. And because the debt is secured by your home, it often comes with a lower interest rate. Just don’t use this option unless you’re certain you can pay it back since it could mean putting your house at risk.
  
• Budgeting: Yes, budgeting takes a bit more dedication and sacrifice than a balance transfer card, but it’s often the best option. By taking a look at your current budget and making some adjustments, you can clear up more room for debt repayment. Then, you can use a strategy like the debt snowball or avalanche to tackle your debt one at a time. If this seems overwhelming, a budgeting app can help you simplify things.
  

Finally, you can combine these methods. For example, you could consolidate your high-interest credit card debt with a personal loan and then use the debt snowball method to pay down your other balances (e.g., student loan or car loan) until you’re debt free.

FAQ

Bottom line

You can keep transferring credit card balances to take advantage of 0% intro APR offers as long as you continue to qualify for new balance transfer cards. It can be an effective way to pay down your credit card balance without your money going toward interest.

That being said, there are some major downsides to balance transfer cards, including paying multiple balance transfer fees and the potential negative impact on your credit score.

If you’ve done the math and you can save money by doing multiple balance transfers, it’s time to find a credit card that works for you. Check out our recommendations for the best balance transfer cards to get started.

Extra Long Intro APR on Purchases & Qualifying Balance Transfers

Wells Fargo Reflect^® Card

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Wells Fargo Reflect^® Card

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Rates and fees

Current Offer

Benefit from a long introductory APR period on purchases and qualifying balance transfers

Annual Fee

$0

Benefits and Drawbacks

Benefits

• 0% intro APR for 21 months from account opening on qualifying balance transfers, then 17.74%, 24.24%, or 29.49% Variable APR
• Up to $600 Cell phone protection when you pay for the cell phone with your card (subject to a $25 deductible)
• $0 annual fee
• The ongoing APR may still be competitive compared to other cards

Drawbacks

• No rewards for spending
• 3% foreign transaction fee
• 5%, min: $5 balance transfer fee
• Limited list of card perks

Card Details

• Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
• 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers. 17.74%, 24.24%, or 29.49% variable APR thereafter; balance transfers made within 120 days qualify for the intro rate, BT fee of 5%, min: $5.
• $0 Annual Fee.
• Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
• Through My Wells Fargo Deals, you can get access to personalized deals from a variety of merchants. It's an easy way to earn cash back as an account credit when you shop, dine, or enjoy an experience simply by using an eligible Wells Fargo credit card.