What Debts Can You Transfer To a Credit Card?

Balance transfer credit cards can be a helpful solution if you want to reduce the amount of interest you pay and simplify your debt repayment plan. But you can't move just any debt to a balance transfer card. Balance transfer policies vary by card issuer, and some types of debt may not qualify. Before you apply for a new balance transfer credit card, it’s important to understand which debts you can move and where restrictions may apply. A little research upfront can help you avoid surprises later.

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Key Takeaways

• Some cards accept loans. Certain issuers let you transfer personal loans, auto loans, student loans and even home equity debt, though policies vary widely.

• Watch your utilization. Moving an installment loan onto a card turns it into revolving debt, which can raise your credit utilization and ding your score.

• Fees and post-promo rates can erase savings. Transfer fees of 3% to 5% and the standard APR after the intro period can outweigh the benefit, so compare total costs first.

Summary generated by AI, verified by MoneyLion editors

Debts That Can Be Transferred To a Credit Card

Many credit card issuers will let you use balance transfers to move debt you owe to another lender to your credit card account. Once the balance transfer goes through, you make payments to your card issuer instead of your previous creditor. With many balance transfer offers — both on new credit cards and existing accounts — you may qualify for a reduced or 0% APR period that can help you save money while you pay down your debt.

Each issuer has its own rules when it comes to the types of balances you can transfer to a credit card. However, the following types of debts are commonly eligible. 

Credit Card Debt

One of the most common ways people use balance transfers is to pay off other credit cards. Depending on the card issuer’s rules, you may be able to move balances from both traditional credit cards and certain retail store cards. Many cardholders transfer high-interest credit card balances to take advantage of a lower APR.

For example, imagine you’re carrying a $5,000 balance on a credit card with a 24% APR. You might transfer that balance to a card offering a 0% introductory APR for 15 months. If you pay off the debt during the promotional period, you could potentially save hundreds of dollars in interest charges, even after you factor in the cost of the balance transfer fee. 

Personal Loans

Certain balance transfer credit cards will let you pay off a personal loan through a direct balance transfer or balance transfer check. Some issuers may also offer balance transfer loans, which let you borrow a fixed amount against your credit limit at a promotional rate instead of transferring debt to your account in the traditional way. 

For example, imagine you have a $7,500 personal loan with an 11.40% APR and two years left on the repayment term. If you qualify for a balance transfer offer with a 0% introductory APR for 21 months, moving the debt could potentially reduce your borrowing costs. Assuming you would pay about $923 in interest over the remaining life of the loan and incur a 5% balance transfer fee ($375), you could still save approximately $548 (depending on details like whether you pay off the debt before the promotion rate ends). 

Home Equity Financing

Certain credit card issuers may let you use a balance transfer to pay off a Home Equity Line of Credit (HELOC) or a home equity loan. However, this option isn’t universal, so you’ll need to review the credit card company’s policies before moving forward. 

Before you transfer home equity debt to a credit card, compare costs carefully. While a promotional APR may lower your interest costs in the short term, credit card interest rates will likely exceed home equity rates once the introductory period expires.

Other Eligible Debt

Some balance transfer offers go beyond the common revolving and installment debt above. Depending on the card issuer, you may be able to use balance transfer funds to pay certain auto loans, student loans, utility bills, cell phone bills, tax bills and other financial obligations. Some issuers may even let you use a balance transfer to pay an individual. 

But keep in mind that even if your card issuer allows a certain type of balance transfer, that doesn't mean it’s necessarily the right choice. It’s always important to compare costs carefully since fees and future interest charges could reduce your potential savings. Using a balance transfer for debts that aren't from credit cards increases your credit utilization rate, which might damage your credit score over time.

Credit Card Issuer Rules About Debt Transfers

While many balance transfer offers work in similar ways, card issuers don’t all follow the same rules. Some allow cardholders to use balance transfer funds to pay off a wide range of debts, while others limit transfers to specific types of accounts. 

The examples above don’t guarantee that a particular debt will qualify for a balance transfer. Before you apply for a balance transfer card, review the terms carefully. 

In addition to debt-transfer restrictions, many issuers have other balance transfer rules worth noting: 

• Balance transfers generally can’t exceed your credit limit. You’ll also need enough available credit to cover any balance transfer fee. 

• Transferred balances typically don’t earn rewards. If rewards matter to you, review the card’s rewards program rules in addition to its balance transfer policy.

Picking the Right Balance Transfer Card

The best balance transfer card for your situation depends on more than the length of the promotional APR period. Before you apply, take time to consider your options carefully. 

• Consider the types of debt you can transfer. Not every balance transfer offer works the same way. Review the issuer’s rules to make sure the debt you want to move qualifies.

• Make sure you have good credit. The best balance transfer cards often require you to have good credit to open an account. It’s smart to check your credit before you apply for a new account to avoid unnecessary credit inquiries. 

• Calculate the total cost. Balance transfer fees often range from 3% to 5% of the amount you transfer. Compare those costs against your potential interest savings.

• Create a repayment plan. A 0% introductory APR won’t last forever. Calculate how much you need to pay each month to eliminate the balance before the promotional period ends.

• Compare other card features. Rewards, welcome offers, and cardholder benefits may add value beyond the balance transfer off itself. 

• Shop around. Compare multiple credit card offers before you decide which account is right for you. Pay attention to promotional APR periods, ongoing interest rates, fees, and transfer rules. 

Bottom Line

A balance transfer card can be a smart way to save money and pay off debt faster, but it’s not perfect for every situation. Some debts don’t qualify for balance transfers, and issuer rules can vary significantly. Taking a few minutes to review the fine print upfront could save you time, money, and frustration later.

FAQs

Can you transfer a balance from one credit card to another? 

Yes. Paying off one credit card with another credit card is one of the most common ways to use a balance transfer.

Can you transfer debt from the same card issuer? 

You usually cannot transfer balances between two accounts from the same company.

Can you transfer a personal loan to a credit card? 

Some credit card issuers allow personal loan balance transfers, but eligibility rules vary. 

Can you transfer a mortgage to a credit card? 

Maybe. Some balance transfer offers may work for certain types of mortgage-related debt, but each card issuer and credit card product typically has its own policies.

Do balance transfers hurt your credit score? 

A balance transfer could affect your credit score, but its long-term impact depends largely on how you manage the credit card account.

Key Terms

• Balance transfer: Moving debt from one account to a credit card, usually to capture a lower or 0% introductory APR.

• Introductory APR: A temporary promotional rate (often 0%) that lasts a set period — commonly six to 21 months — before the standard rate applies.

• Balance transfer fee: A one-time charge to move a balance, typically 3% to 5% of the amount transferred.

• Balance transfer check: A check some issuers provide so you can pay off a non-card debt and have that amount added to your card balance.

• Credit utilization ratio: The share of your available revolving credit you're using; it makes up about 30% of a FICO Score.

• Revolving credit: Reusable credit like cards and lines of credit — the only type counted in your utilization ratio.

• Installment debt: Fixed-payment loans such as auto, student and personal loans, which don't count toward utilization until moved onto a card.

• Promotional period: The limited window during which the low or 0% intro rate applies before reverting to the standard APR.

Sources

• CFPB — What is a balance transfer?

• CFPB — Will paying off my credit card balance every month improve my credit score?

• myFICO — What's in my FICO Scores?

• FTC — How To Get Out of Debt

Summary generated by AI, verified by MoneyLion editors