Why choose a balance transfer card?

Carrying high-interest balances across several cards can drain your budget and delay your financial goals. A balance transfer credit card consolidates those debts onto a single account that often comes with an introductory low- or zero-percent APR on transferred balances for a specified period. That breathing room can let more of your monthly payment go toward the principal instead of interest, accelerating payoff and reducing total interest paid.

Key benefits

• Introductory rate relief: Take advantage of a promotional low or 0% APR on transferred balances for an introductory period, helping you reduce interest costs right away.
• Streamlined payments: Consolidate multiple balances into one monthly statement and a single due date for easier budgeting and improved tracking.
• Flexible repayment options: Use the introductory period to focus on higher payments that chip away at principal, enabling faster debt reduction.
• Potential ongoing rewards and benefits: Many cards from established issuers combine balance transfer features with added perks such as cashback on purchases, fraud protection, and access to helpful online tools.
• Trusted issuer support: Bank of America provides robust online account management, helpful customer service, and tools that can help you monitor progress and set goals.

How a balance transfer works

When you request a balance transfer, the card issuer pays off eligible balances from one or more existing credit accounts and moves those balances onto your new Bank of America card. During the promotional period, the transferred balances can carry a reduced interest rate, meaning a larger portion of each payment reduces what you owe. Typical steps include:

1. Review your current balances and interest rates to identify targets for transfer.
2. Apply for the balance transfer card and request transfers for specific accounts and amounts.
3. Monitor confirmations to ensure transfer completion and keep paying any accounts that remain active until transfers are posted.
4. Create a repayment plan that prioritizes extra payments during the introductory period.

Features to consider before applying

Not all balance transfer offers are the same. When evaluating a Bank of America balance transfer credit card, compare these elements to find the right fit for your situation:

• Length of the introductory period: A longer promotional window gives more time to pay down transferred balances at the reduced rate.
• Transfer fee: Many cards charge a one-time fee for each transfer, often a percentage of the transferred amount. Factor this into your cost-benefit analysis.
• Post-introductory APR: Know the ongoing rate that will apply after the promotional period ends and plan accordingly.
• Credit limit availability: Your approval and the credit limit assigned will determine how much you can transfer initially.
• Additional card benefits: Look for protections such as zero liability for unauthorized transactions, account alerts, and easy online statements.

Smart strategies to maximize savings

To get the most value from a balance transfer offer, adopt an intentional approach:

• Prioritize high-interest debt: Transfer balances with the highest APR first to maximize interest savings.
• Pay more than the minimum: During the introductory period, apply any extra funds to the principal to reduce total interest and shorten payoff time.
• Avoid new balances: Resist using the card for new purchases until transferred balances are paid off, unless the card offers purchase protections that justify limited use.
• Keep old accounts open when appropriate: Closing old accounts can impact your credit utilization ratio and credit history length. Consider keeping paid accounts open unless there’s a compelling reason to close them.
• Track deadlines: Note the end of the promotional period and plan to either pay the balance in full or prepare for the regular APR to take effect.

Who benefits most?

A balance transfer card is particularly effective for individuals who:

• Have multiple credit card balances and want to consolidate payments.
• Are committed to paying down debt within a specific time frame.
• Can cover any transfer fees through interest savings during the promotional period.
• Prefer the convenience and oversight of a respected bank’s online tools to monitor progress and manage payments.

Common questions

Can I transfer balances from any creditor?

Eligibility depends on the terms of the card and the type of debt. Some balances may not qualify; review the card’s terms for details.

Is there a fee for balance transfers?

Many cards charge a transfer fee, usually a percentage of the transferred amount. Compare the fee against potential interest savings to determine if a transfer is worthwhile.

Will a transfer affect my credit score?

Applying for new credit generates a hard inquiry, which can have a small temporary impact. However, reducing overall credit utilization by consolidating debt can improve your score over time.