Balance Transfer Hacks: How to Pay 0% Interest for 21 Months

If you are paying 25% interest on your credit card, you are trying to fill a bucket with a hole in the bottom. A Balance Transfer (BT) allows you to move that debt to a new card that charges 0% interest for 15 to 21 months. It basically “freezes” your debt so every dollar you pay goes 100% toward the principal. But it’s not free—there is a fee, and a dangerous deadline. Here is the math to see if it saves you money.

BMT Credit Team BMT Credit Team · 📅 Mar 2026 · ⏱️ 5 min read · DEBT › HACKS
Rate
0%
Intro APR (Promo)Win
Cost
3-5%
Transfer FeeFee
Score
690+
Required to QualifyRule
Conceptual visualization of debt transfer: A burning credit card (25% APR) transitions into a frozen block of ice (0% APR)

Stop the Burn: A Balance Transfer moves your debt from a fiery 25% APR to a frozen 0% APR. It buys you time—usually 15 to 21 months—to pay off the principal without interest growing.

Image Source: bestmoneytip.com

1. How a Balance Transfer Works

It is essentially a “refinance” of your credit card debt.

The Process
  1. Apply: You get a new card (Card B) with a $10,000 limit and 0% APR for 18 months.
  2. Transfer: You tell Card B to pay off your old Card A ($5,000 balance).
  3. Result: Card A balance is $0. Card B balance is $5,150 (Debt + 3% Fee).
  4. Payoff: You now owe Card B, but interest does not grow for 18 months.

2. Is the 3% Fee Worth It?

Many people hesitate to pay the upfront fee. But let’s look at the math on a $10,000 Debt.

TOTAL COST OVER 12 MONTHS
Keep Old Card (25% APR) ~$2,500 Interest Cost
Balance Transfer (3% Fee) $300 One-Time Fee
*You save $2,200 instantly.

3. The 3 Deadly Traps

Banks offer this because they bet you will fail. Don’t let them win.

Trap What Happens Solution
The “Purchase” Trap New purchases might accrue interest immediately. Don’t use the card. Cut it up. Only use it to hold debt.
The “Missed Payment” 0% Promo is revoked. APR jumps to 29.99%. Autopay. Set it to minimum + extra. Never miss a date.
The “Time Limit” Any remaining balance at Month 22 gets hit with interest. Divide & Conquer. Balance ÷ 18 months = Monthly Payment Goal.

4. Who Can Get These Cards?

This strategy is for people with “Good” credit who have “Bad” debt.

  • Credit Score: Usually requires 670-690+ FICO. If you are below 650, you will likely be rejected.
  • Same Bank Rule: You cannot transfer debt within the same bank. (e.g., You cannot move Chase debt to another Chase card). You must cross banks (Chase → Citi).
  • Credit Limit: The new card might only give you a $5,000 limit even if you owe $10,000. Transfer what you can (highest APR first).

5. Frequently Asked Questions

Does this hurt my credit score?
Temporarily, yes. Opening a new card (Hard Inquiry) and lowering the average age of accounts might drop your score 5-10 points. However, lowering your utilization over time will boost it back up significantly.
What if I can’t pay it off in 21 months?
You will start paying interest on the remaining balance. It’s still better than paying interest for those 21 months, but try to clear as much as possible.