If you’re carrying a credit card balance with a high annual percentage rate (APR), transferring it to a card that offers a low or 0% introductory APR can be a smart way to reduce or eliminate interest charges. But is it wise to continue shifting your balance from one card to another once the promotional period ends? Below, we’ll explore how multiple balance transfers work, their potential benefits, and the risks involved.
What Is a Balance Transfer?
A balance transfer allows you to move an existing credit card debt from a high-APR card to a new card with a lower interest rate—often 0% for a set period. Depending on the offer, this 0% APR window can last anywhere from nine to 21 months. During that introductory period, you can focus on paying down your balance without incurring additional interest charges.
Balance transfer fees: Most credit card issuers charge a fee of 3% to 5% of the transferred amount (with a $5 or $10 minimum). While these fees add to your debt, they’re often less than what you’d pay in interest on a high-APR card. Regular APR after the promo period: After the 0% APR offer ends, your remaining balance will be subject to the card’s standard APR—which could be upwards of 20%.
Can You Repeatedly Transfer Credit Card Balances?
Yes, you can theoretically transfer your balance to another 0% APR card once the introductory period on your current card ends. However, this strategy hinges on maintaining a good credit score and being disciplined:
Good credit score needed: To qualify for multiple low-interest or 0% APR offers, your creditworthiness must remain strong. Each new credit card application triggers a hard inquiry, which can lower your credit score temporarily.
Transfer fees add up: Repeatedly transferring balances means multiple fees of 3% to 5%. Over time, these fees might outweigh the savings if the balances are large or if the promotional periods are short.
Careful timing: You’ll need to time your transfers so there’s little to no gap between promotions. Letting the promotional period lapse could result in a higher APR on your remaining balance.
Should You Transfer a Balance Multiple Times?
Transferring a credit card balance multiple times can help some people save money on interest, but it’s not without risks:
Risk of accumulating more debt: If you continue to charge new expenses on top of your transferred balances, you could end up in a worse financial position.
Potential credit score impact: Opening multiple credit cards within a short timeframe can shorten your average account age and lower your credit score. On the positive side, a new credit line increases your total available credit, which can improve your credit utilization ratio if you don’t rack up new charges.
Alternative options: If you’re unsure about your credit score or struggle with disciplined payments, a personal loan for debt consolidation might be more predictable.
Can You Transfer More Than One Balance to a Single 0% APR Card?
Yes. If your new credit card’s limit can accommodate your combined balances (plus the associated fees), you can transfer more than one balance. This simplifies your finances by consolidating debts, making it easier to manage payments. However, keep an eye on:
Credit limit: Exceeding your limit can result in over-limit fees and the issuer declining the transfer.
Ongoing usage: Avoid making new purchases on your transferred-balance card unless it offers 0% APR on purchases as well—and even then, stay focused on paying down your existing debt.
Key Considerations Before Making Multiple Balance Transfers
Have a Clear Repayment Plan
Before initiating another balance transfer, create a structured timeline for paying off the debt you have. A detailed budget and payoff plan will help you avoid ending up in a perpetual cycle of transfers.
Calculate the True Costs
Consider how much you’ll save by transferring, factoring in the balance transfer fee. If you’re not transferring to a card with a significantly lower APR, you may save more by making larger payments on your current credit card instead.
Avoid Accumulating New Debt
Carefully control your spending. If your balance continues to grow, 0% APR offers won’t solve the underlying issue. Adding more debt could trap you in a continual cycle of balance transfers.
Monitor Your Credit Score
Each new application for credit causes a hard inquiry and shortens the average age of your credit accounts. On the other hand, more available credit (and responsible usage) can lower your credit utilization ratio, potentially boosting your score.
Meet Minimum Payment Requirements
Even during a 0% promotional period, you still need to make at least the minimum monthly payments on time. Late or missed payments could cancel your intro APR and lead to penalty fees and higher interest rates.
Bottom Line
Multiple balance transfers can be a viable strategy to reduce or avoid paying interest—particularly if you’re disciplined, have a solid credit score, and can commit to paying off your debt before each promotional period ends. If you decide to pursue more than one balance transfer, be sure to account for fees, keep a close watch on your credit score, and adopt responsible financial habits so you don’t end up deeper in debt.
If you’re not confident in your ability to manage multiple balance transfers or maintain good credit, consider debt consolidation loans, credit counseling, or simply dedicating yourself to larger monthly payments to reduce your debt faster. With a clear plan, disciplined spending, and careful timing, balance transfers can help you save on interest and achieve your goal of becoming debt-free.