If I understand correctly I can transfer a balance of my credit card to a new credit card and pay no interest for 40 months?

How your promotional rates will change

After 40 months, the rate on Balance Transfers will go from 0% to 18.95%.

After 6 months, the rateon Purchases will go from 0% to 18.95%.

Fees to be aware of

For a balance transfer, you'll be charged 2.39% of the balance you're transferring.

Of course I should be super-vigilant to repay the money within 40 months period but still... How do they make money?

  • They make money by getting you to switch to their card. This is a minor marketing cost. See past answers with the balance-transfer tag.
    – keshlam
    Oct 4, 2016 at 22:40
  • 1
    They are making 2.39% off the top. Unless you pay off the entire balance (including the 0% part) before the 6-month period expires, you will be paying interest on purchases from day of purchase onwards till day of payoff (which will be much later than you think). Read this answer to understand how balance transfer offers really work and why they are such a good deal for credit-card companies and a such a very had deal for consumers. Oct 4, 2016 at 23:54

1 Answer 1


They immediately make money by charging you the initial 2.39% fee.

In the long term they make money because a surprisingly large number of customers don't pay the balance off, or otherwise violate the terms of the offer, so that the 18.95% rate applies.

And sometimes, depending on card policies, they make money when the consumer makes new purchases on the card which accrue interest immediately at the 18.95% rate while payments only go to paying down the 0% rate balance.

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