How does a balance transfer credit card work

A balance transfer credit card lets you move existing debt from one or more credit cards onto a new card, typically one offering a low or 0% introductory interest rate for a set period, usually 12 to 21 months. This allows you to pay down your debt without accumulating additional interest during that promotional window. To do it, you apply for the new card, then request the transfer by providing your old account details. The new card issuer pays off the old balance and you owe that amount to them instead. Most cards charge a balance transfer fee of 3 to 5 percent of the amount transferred. If you don't pay off the balance before the promotional period ends, the remaining amount gets charged at the card's regular interest rate.