How 0% Balance Transfer Credit Card Offers Work – And Save THOUSANDS of Dollars!

NOTE: I wrote this post to help people who are paying high interest on their credit cards. I maintain a running list of 0% Balance Transfer Credit Card offers HERE.

Here’s a fact: Many people possess credit card debt they are unable to pay off each and every month.

They want to pay it off each month, but they are unable to. As a result, they feel stuck. The interest rate being applied to their credit card balance is one of the primary reasons they feel that way.

0% balance transfer credit card offers provide a way to eliminate a credit card debt very quickly and can provide HUGE savings over keeping a balance on a high interest card.

Here’s an example:

  • Credit Card Balance: $16,000
  • Interest Rate: 21.99%
  • Minimum Payment: 1% of balance plus interest charges (or $10 – whichever is greater)

If this person were to keep the balance on this card, they would pay $44,895.36 and take 36 years 4 months to eliminate!

By transferring the balance to a 0% transfer offer and making the same payment, they would pay $17,039.51 TOTAL (only $1,039.51 in interest and fees) – and they would be free of credit card debt in 49 months!

Rolling a high interest credit card balance to a 0% balance transfer credit card offer SAVED $27,855.86 and become debt free 387 months (32 years and 3 months) sooner!

Here’s the process of how this type of offer works:

  1. THE OFFER  An offer and application for a zero percent balance transfer credit card is completed online or through a mail-in offer.  During the application process, the applicant is asked if they wish to transfer a balance.When this option is selected, the application process includes the opportunity to provide information regarding existing loan balances that they wish to be transferred.  This requested information is detailed including – current provider, account numbers, and loan balance.It is important to understand that the application process requires the applicant to provide their social security number and that a credit check will be performed.Once the application is submitted, a decision is typically rendered within a time range of a few minutes to a few days.
  2. THE EVALUATION  Once the application has been submitted, the credit card provider evaluates the information provided to determine credit-worthiness.  This evaluation is completed based upon several factors that vary between lenders.  It always involves a check of one’s credit score and the loan amount requested.This evaluation also ensures that the person listed on the application is really the person requesting credit.  This is an extremely important step to prevent identity theft and fraud and should make the applicant feel much more comfortable with this process.
  3. THE DECISION  Once this evaluation is complete, a decision is rendered.  The lender’s decision will be one of three alternatives:
    1. ACCEPTED:  ALL of the balances to be transferred to zero percent
    2. ACCEPTED:  SOME of the balances to be transferred to zero percent
    3. DENIED:  NONE of the balances will be transferred

    If ALL of the balance transfer requests are accepted, the new credit card provider will send money directly to each of the lenders.  Within a few short days, the balances due each previous lender will be lowered by the requested amount and that new balance will transfer to the new card provider.

    If SOME of the balance transfer requests are accepted, the new credit card provider will send money directly to some of the lenders.  IT SHOULD BE NOTED that it varies between lenders on which balances will be accepted.  On one of Discover’s applications, it stated the following in their terms and conditions:

    “We process multiple balance transfers in the order they are requested on the application. Your credit line may be less than the amount of balance transfers you request. In addition, balance transfers may be limited to a portion of your credit line. If a balance transfer will exceed the credit available for a balance transfer, you authorize us to process any balance transfer for less than the amount requested, up to the amount of your credit available for balance transfers.” – SOURCE: Discover’s website

    If NONE of the balance transfer requests are accepted, then it means that requested balance transfers will not occur and the current lenders will remain the owners of each debt.

That’s how this type of offer works – hopefully it can help you save tons of money!



  1. Sam Patton on April 26, 2013 at 6:21 pm

    A few years ago we used 0% balance transfers to minimize our interest payments and it was extremely helpful to us. We used short-term 0% balance transfer programs usually lasting 6 to 12 months. The key was to make sure we remembered when the interest rates were due to increase. Before this happened, we would transfer the balance again, hopefully to another 0% program, or to the lowest interest rate we could find on our existing credit cards. We were very happy that the programs were available because we save ourselves a lot of money.

  2. Demetris Jones on March 15, 2017 at 12:57 pm

    I really wish I had read this 7 months ago. I definitely needed this information.

Leave a Comment