Credit card balance transfers: A smart debt management strategy

If you’re paying high interest on credit card debt, you could be wasting thousands of dollars each year—money that could be used to pay down what you owe instead of covering interest charges.

Credit card balance transfers offer a way to escape the cycle of high-interest debt by allowing you to move your balance to a card with a much lower rate, often as low as 0% APR for an introductory period. This temporary break from interest gives you a real opportunity to pay down your debt faster and regain control of your finances.

This guide will break down how a credit card balance transfer works, what to look for in a good offer, and how to use one strategically to help eliminate debt once and for all.

What you’ll learn

• How do balance transfers work?
• Choosing the best balance transfer offer for your needs
• Steps for a successful balance transfer
• Common balance transfer pitfalls
• Take control of your debt with the right balance transfer strategy

How do balance transfers work?

A balance transfer allows you to shift high-interest debt to a new credit card that offers a 0% APR (annual percentage rate) introductory period, giving you a temporary break from interest so you can make real progress on paying down your balance.

The benefits are clear: Lower interest costs and consolidated debt. Just be sure to understand when the 0% APR period ends, any remaining balance will then be subject to the card’s standard interest rate.

Choosing the best balance transfer offer for your needs

Not all credit card balance transfers are the same, and choosing the wrong one could cost you more in fees and interest. To find the best fit, focus on:

• Introductory 0% APR length. Longer is better, with some cards offering 12 months of 0% interest.
• Balance transfer fees. Often 3-5% of the transfer amount—aim for the lowest possible fee.
• Post-intro APR. Make sure you check the standard interest rate that will apply once the promo period ends.
• Credit score requirements. Some cards require good to excellent credit for approval. Be sure to double-check before you apply.

If you're looking for a cost-effective way to tackle debt, the Alliant Visa^® Platinum Card offers an introductory rate as low as 0% APR⁵¹ for 12 months on balance transfers (after the introductory period, a low standard variable rate applies ranging from 14.49%–26.49% APR), a low 2% balance transfer fee, and no annual fee—giving you the time and financial flexibility you need to pay down your debt without excessive penalties or transfer fees.

Steps for a successful balance transfer

While relatively straightforward, there are a few key steps to follow when initiating a balance transfer. By following these guidelines, you can set yourself up for a smooth and successful transfer.

1. Assess your debt: Determine the total balance you need to transfer and make sure it doesn’t exceed the credit limit of the new card. Also, remember to factor in transfer fees when calculating potential savings.

2. Research balance transfer cards: Compare different options based on intro APR length, transfer fees and post-introductory interest rates to find the best fit.

3. Apply for the card: Once you’ve chosen the best card, submit your application. If your credit score is on the borderline, improving it before applying could help secure a lower rate.

4. Transfer your balances: After approval, follow your new credit card’s process to move your balances. This typically requires providing details of your existing accounts and can take anywhere from a few days to two weeks.

5. Create a repayment plan: If you want to pay off the entire balance with no interest, divide your balance by the number of months in your 0% APR period and set up automatic payments to clear the debt before interest payments kick in.

6. Monitor your progress: Regularly check your account to track your repayment progress and ensure there are no unexpected fees or rate changes.

Common balance transfer pitfalls

Credit card balance transfers can be a highly effective debt-reduction tool, but you must use them strategically and avoid certain pitfalls.

Some cardholders make the mistake of transferring balances but continuing to spend on their old cards, ultimately increasing their debt instead of paying it down. Others only make minimum payments on their new balance transfer card, missing the opportunity to eliminate debt before the interest-free promotional period ends.

Failing to pay on time is another common pitfall. Many credit card issuers void the 0% APR offer if a payment is missed, meaning the balance could suddenly be subjected to a high interest rate. Perhaps the most often overlooked factor is the balance transfer fee. While this fee can certainly be worthwhile if it saves you from years of high interest rates, failing to include it in your calculations can lead to a surprise spike in your debt.

Take the time to carefully read and understand the terms and conditions of any balance transfer credit card before making a decision. This includes paying attention to the length of the promotional period, any additional fees or charges, and what will happen if you miss a payment or fail to pay off the balance in full by the end of the introductory period. This way, you'll be able to make an informed decision and avoid any unexpected hiccups in your debt repayment plan.

Take control of your debt with the right balance transfer strategy

Getting rid of high-interest debt can feel a bit like climbing an impossibly high mountain, but a balance transfer credit card can make the journey a whole lot easier—if you use it wisely. Moving your balance to a card with a 0% APR period, like the Alliant Visa^® Platinum Card, can give you the time and flexibility to pay down what you owe without interest stacking up. But the transfer alone won’t fix everything, it’s what you do next that matters.

A balance transfer is an opportunity to reset your finances, not just shift debt from one place to another. That means making a plan, setting a timeline and committing to payments that actually move the needle. When used correctly, a balance transfer card can be a stepping stone to a debt-free future, giving you financial breathing room and control over your money again.