can add up to big savings
How balance transfers work
A balance transfer moves a credit card or loan balance from one company to another, generally to get a lower interest rate.
You can only transfer as much as your credit limit allows, but within that limit, the amount that you transfer is up to you.
Why they can be beneficial
Balance transfers can help you avoid paying higher interest rates on your existing balances with other lenders.
This can add up to big savings. You can even pay off other loans—like an auto loan, for instance—at a lower rate.
What to look for in a balance transfer offer
This special interest rate is usually lower than the regular rate you’re charged on purchases and applies only to the amount you’re transferring. The lower that number is, the better.
This is the amount of time the special interest rate applies. After that, the interest rate will go up on any remaining balance. Longer promotional periods give you more time to make payments at lower interest rates. Of course, paying off the entire balance before the interest rate goes up saves you the most money.
Many offers include a fee, sometimes called a “transaction fee,” for transferring a balance. It’s usually a percentage of the balance you’re transferring.
Capital One® balance transfer questions
What types of balances can I transfer?
You can transfer balances from other credit cards, personal loans, student loans, and auto loans. You will not be able to transfer a balance from another account issued or acquired by Capital One or any of its affiliates or subsidiaries.
How are my payments applied after I transfer a balance?
If you accept a balance transfer offer, you will still need to make your minimum payment due each month in order to keep your account in good standing. Here is how we apply your payment: We generally apply payments up to your minimum payment first to the balance with the lowest Annual Percentage Rate (APR) including 0% APR, and then to balances with higher APRs. We apply any part of your payment exceeding your minimum payment to the balance with the highest APR, and then to balances with lower APRs.
Can I avoid interest on new purchases after I transfer a balance?
Yes you can! Capital One cardholders (excluding those with partner cards) who transfer a balance can pay the Interest Saver Payment by the due date each month, and avoid paying interest on new purchase transactions. The Interest Saver Payment amount can be found on the statement and it includes the minimum payment plus all your non-promotional balances (including purchases, cash advances, fees, and finance charges).