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Short answer
Paying $5,000 off over 18 months at 24.99% APR costs about $1,047 in interest. A 0% transfer costs a 3% to 5% fee ($150 to $250) and wins if you clear the balance inside the promo.
1. The comparison
$5,000 balance at 24.99% APR, cleared over 18 months.
| Fee | Fee cost | New balance | Monthly for 18 months | Fee paid | Interest saved |
|---|---|---|---|---|---|
| 3% | $150.00 | $5,150.00 | $286.11 | $150.00 | $896.82 |
| 5% | $250.00 | $5,250.00 | $291.67 | $250.00 | $796.82 |
Staying on the card with the same 18-month plan costs $335.93 a month and $1,047 in interest.
2. When a transfer fails
If you pay only $200 a month on the $5,150 balance, $1,550 remains after 18 months and it then accrues at the card's regular rate. The fee is also due whether or not you finish in time.
3. Checklist
- Fee as a percentage of the balance
- Length of the promo and the rate after it
- Whether new purchases also accrue interest
- Whether a missed payment ends the promo
4. Frequently asked questions
Is a balance transfer worth it?expand_more
It can be if the fee is smaller than the interest saved and you clear the balance in the promo.
What is a typical balance transfer fee?expand_more
Often 3% to 5% of the amount transferred.
What happens after the promo ends?expand_more
The remaining balance accrues at the card's regular APR.
Can I transfer between cards from the same issuer?expand_more
Usually not. Check the offer terms.
5. Sources
- menu_bookCFPB: What is a minimum payment?
- menu_bookCFPB: Credit cards
- menu_bookFederal Reserve: Consumer credit