A balance transfer credit card lets you move high-interest credit card debt to a new card with a lower or 0% introductory rate. By reducing what you pay in interest, more of your money goes directly toward paying down your balance.

Think of it as moving your balance into a new bucket that gives you breathing room to pay it off more affordably. Many people use balance transfer cards as a short-term tool to save money and simplify their repayment plan.

Balance transfer cards work by consolidating your existing credit card balances into one place, ideally at a lower interest rate. This makes your debt easier to manage and potentially less costly.

Here’s what usually happens:

1. You apply for a balance transfer card
2. Once approved, you request to move balances from your existing credit cards
3. The new card issuer pays off those balances, and you now owe the combined amount on the new card

Most balance transfer cards offer an introductory 0% or low APR for a set period—often 6 to 18 months. During this window, your payments go toward reducing the principal instead of interest. However, keep in mind:

• Transfer fees (often 3–5% of the transferred balance) apply
• Intro periods expire. After the offer ends, the rate may jump significantly

A balance transfer card can be a good choice if you have high-interest credit card debt and a clear plan to pay it off during the promotional period.

It may help if:

• You’re carrying balances across multiple credit cards
• Your current interest rates are high
•  You can realistically pay off the transferred balance before the intro rate ends

For example: If you owe $5,000 on a card with a 20% interest rate, transferring it to a card with a 0% intro APR could save you hundreds of dollars in interest—provided you pay it down within the promo window.

Balance transfer cards can be useful, but they come with risks if not managed carefully. Here are a few potential risks to watch for:

• Fees add up. A 3–5% transfer fee means moving $5,000 could cost $150–$250 upfront
• Missed payments matter. One late payment may cancel your intro APR and trigger higher rates
• Higher rates later. Once the promo ends, the card’s regular APR may be as high—or higher—than your old card
• Temptation to spend. If you continue using the old card after transferring, you could end up with even more debt

Balance transfer cards work best as a short-term strategy, not a permanent fix.

Personal loans can be another way to consolidate debt and may offer more stability than a balance transfer card.

Here’s why some people prefer personal loans:

• Fixed payments. You borrow a lump sum and repay it in predictable monthly installments
• Stable interest rate. No sudden jumps once a promo ends
• Longer repayment timeline. Instead of 6–18 months, terms may run 2–5 years

A personal loan may be a better fit if:

• You need more time to pay off your debt
• You prefer a set monthly payment schedule
• You don’t qualify for a balance transfer card with a strong introductory offer

Whether you’re looking to consolidate debt, fund a home improvement project, purchase your dream vehicle, or simply need extra cash, M&T Bank is here to help.

Explore our Lines of Credit and Personal Loans to find the option that fits your needs and goals. With flexible choices and guidance available, you can move forward with confidence.