 TITLE: How Do Business Credit Card Balance Transfers Work? CONTENT: What Is a Balance Transfer?\n---------------------------\nA balance transfer credit card allows you to transfer a balance from one credit card onto another credit card that has a lower interest rate, or annual percentage rate (APR). Typically, balance transfer cards offer 0% APR on the balance transferred for an introductory period, such as 12 months. By moving debt from a higher-interest credit card to the balance transfer card, you give yourself time to pay off the debt without incurring additional interest. The longer the introductory period lasts, the more time you'll have.\nSuppose you transfer a $10,000 balance from a business credit card with a 21.95% APR (the average maximum APR for business credit cards as of September 2020) to a card offering 0% intro APR for 12 months. Assuming you pay off the balance within 12 months and don't make any additional purchases on the new card, you would save $2,195 in interest. Once the introductory APR period is over, however, your new credit card's APR will climb, and any balance you carry will start accruing interest.\nBusiness credit card balance transfers work the same way as consumer credit card balance transfers. You find a business credit card that has a good balance transfer offer and complete an application. Once you're approved—which generally requires good to excellent credit, or a FICO® Score☉ of 670 or above—the credit card company determines a credit limit. When you request a balance transfer, the new credit card company pays off the balance being transferred and moves it onto your new card. There's usually a balance transfer fee of 3% to 5% of the amount being transferred; this fee gets rolled into your new balance on the new card. END