Key takeaways
- If your balance isn’t paid off during the introductory period, interest charges start accruing on your remaining balance.
- Options for handling the remaining balance include making a lump sum payment, revamping the payment plan, taking out a debt consolidation loan or transferring the balance to another 0 percent APR card.
- It is important to have a plan in place to pay off the balance before the introductory period ends to avoid high interest charges.
A balance transfer credit card can offer you many months to pay off high-interest debt in the form of a 0 percent introductory APR. But when that balance transfer period ends, interest starts accumulating on any remaining balance. To avoid paying interest on your transferred balance, aim to have it paid in full when the promotional period ends. But what happens if you don’t pay a balance transfer off in time?
Forty-eight percent of cardholders carry a balance from month to month instead of paying off their card in full, according to a Bankrate debt survey. This is a slight decrease from the 50 percent of cardholders who carry debt reported in June 2024.
If you’ve also found yourself in this position with your balance transfer credit card nearing the end of its introductory period, you’ll need to come up with a plan to wipe out the remaining balance before the interest charges pile up. Here are your options and how to determine which plan works best for you.
What happens when the balance transfer offer expires?
The APR — or annual percentage rate — on a credit card represents the interest you’re charged on your card’s balance over a 12-month period. Introductory offers are special offers for new cardholders from credit card issuers that last for a specified time. Once that time period ends for your balance transfer credit card, the card’s ongoing APR will apply to your remaining credit card balance.
The higher the credit card balance is when the 0 percent APR period ends, the more interest you will accrue. Let’s say you have $1,000 left on your credit card at the end of your introductory offer. If the ongoing APR is 24 percent and you pay $100 per month until your balance is zero, it will take you twelve months to get there. That’s because, in addition to the $1,000 you borrowed, you will pay $127 in interest.
What to do with remaining debt when your balance period transfer ends
The best course of action when you have a balance on your credit card is to pay it in full at the end of your billing cycle. But if you’re approaching the end of your promotional 0 percent APR period and still have a balance, there are a number of moves you can make. You can:
Make a lump sum payment
Making a lump sum payment is your simplest and least expensive option if you have a remaining balance when your balance transfer period ends. You’ll avoid any interest charges by using any savings or extra cash you may have to pay off the balance transfer card. Consider how much — if any — cash on hand you’ll need in the near future and weigh that against your need to pay down your credit card balance.
Leave the balance on the current credit card and revamp your payment plan
If you’re unable to pay your card’s balance in full and don’t want to apply for another card, make a new plan to pay the current card balance. The average credit card interest rates on most balance transfer cards are relatively high (about 20 percent), so address any budgeting issues that may be preventing you from tackling your credit card balance. Try to pay the balance off as quickly as you can.
Consider a debt consolidation loan
If you find that you can only make minimum payments on your credit card, leaving a balance on your credit card can get expensive quickly. To avoid your credit card’s high interest rate and get rid of your debt with one payment, you could take out a debt consolidation loan. This is a helpful tool for managing your debt because it allows you to use one loan to pay off multiple high-interest debts — typically credit cards — over a period of time, with fixed monthly payments. If the interest rate on the loan is less than the APR on your current balance transfer card, you’ll see some savings.
Transfer the balance to another 0% APR card
It might be possible to transfer your existing balance to another 0 percent APR credit card when your current card’s balance transfer period ends. This will give you the opportunity to pay the balance off interest-free for a second time. There’s no official limit to how many balance transfer cards you can sign up for, but you typically won’t be able to transfer your balance to another card from the same issuer. Plus, individual credit card issuers have their own rules surrounding balance transfers, so you’ll have to be mindful of them as you apply for a new card.
How to transfer the balance to another card
Making a balance transfer can vary by credit card issuer but the general process is the same.
- Apply for a balance transfer card. This can be done within minutes of choosing the best card for you. Be careful when looking for introductory APR cards as some only include offers on new purchases. In most cases, you’ll find out if you have been approved within the same day, but sometimes the application can take a few days to process.
- Contact your issuer to request a balance transfer. You can log into your account or call customer service to inform the issuer you would like to make a balance transfer. Some issuers even let you initiate the process with your application.
- Wait for the transfer to go through. A balance may take a few days to a few weeks to transfer to your new card. Make sure you keep making payments on your old card until the transfer goes through. Once the transfer is complete, check your old card to make sure the balance is zero.
From here you should be able to make payments on your balance transfer card. Take the time to plug your own numbers into Bankrate’s credit card payoff calculator to find out how long it would take you to pay off your remaining balance.
Keep in mind
If you do another balance transfer, you’ll need to pay another balance transfer fee, and your credit will be pulled each time you apply for a new card, which could lower your credit score. It also won’t lower the amount you owe or address any issues that might be causing you to carry credit card debt.
The bottom line
Paying your balance in full before the introductory period is over should be your main goal when transferring a balance, but if that’s not possible, it’s critical to create a backup plan. If you didn’t have a plan for using your balance transfer credit card’s introductory period to its full potential the first time around, you can still successfully manage your credit card debt with the right strategy.
If you’re still not sure where to begin and are worried about the resulting interest from your credit card, consider reaching out to a credit counseling agency. A licensed counselor from an accredited non-profit can potentially help you come up with a plan to repay your debt.
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