How Do You Transfer A Balance From One Credit Card To Another

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A balance transfer can help you take control of your debt, but it’s not for everyone. Here’s how it works

How Do You Transfer A Balance From One Credit Card To Another

How Do You Transfer A Balance From One Credit Card To Another

Credit card balances can be stressful when interest rates increase month after month. Even if you pay more than the minimum, it’s easy to get stuck under a mountain of debt.

What Is A Balance Transfer, And Should I Do One?

One option for relief is balance transfer. It won’t eliminate your credit card debt, but it can effectively lower your interest rates so you have more control over your finances.

A balance transfer is when you move your balance from one credit card to another, offering a lower or 0% annual percentage rate (APR) for a set period of time, usually six months to a maximum of two years. For example, the Wells Fargo Reflect® Card offers new cardholders an introductory 0% annual interest rate on balance transfers for up to 21 months after account opening (after which there is a variable interest rate of 15.99%-27.99%).

Not everyone will qualify for the top balance transfer programs. People with good or excellent credit scores (670 or higher) are most likely to be approved. For those with bad credit, a balance transfer may not be the most cost-effective option, as interest rates on most cards will still be in the double digits.

Balance transfer credit cards can be a smart strategy if you have a way to pay off your debt relatively quickly, says Jeanne Kelly, a New York-based credit coach and founder of The Kelly Group.

Explore The Facts About Balance Transfer And Make A Right Verdict

“I think it’s a great move in terms of making a plan to pay off the debt,” Kelly says. “Many times, unfortunately, I see that there are good intentions, but then the debt is not paid and then in 18 months the interest starts again. And then it was a waste of opportunity.”

Most credit card issuers offer a balance transfer program. They generally include an introductory 0% annual interest rate on balance transfers, which can last anywhere from six to 21 months. Sometimes these cards also offer 0% APR on new purchases.

After the introductory window closes, the APR will increase, usually in the double digits. This rate is variable (meaning it can go up and down) and is based on your credit score.

How Do You Transfer A Balance From One Credit Card To Another

In order to take advantage of these introductory offers, some cards require you to request a balance transfer within a certain number of days of account opening. And you’ll probably have to pay a fee.

Balance Transfer Report

Applying for a balance transfer will likely affect your credit score because the credit card issuer will take a hard look at your credit report to verify your credit history.

But any negative impact on your credit can be reversed fairly quickly if you pay your bill, Kelly says. Making payments on time and reducing outstanding debt goes a long way toward improving your bottom line. Payment history and credit utilization—how much of your available credit is used, including what you owe, during the billing cycle—makes up 65 percent of your FICO credit score.

“I wouldn’t suggest getting a balance transfer credit card while you’re in the process of buying a new home,” says Kelly. Mortgage lenders watch your credit activity closely to determine rates, and any drop in your credit score, however temporary, could hurt, she says.

Whether a balance transfer is right for you depends on your financial situation. Overall, there are some pros and cons to consider.

Data And Talktime Transfer

A balance transfer can help you pay off your debt without worrying about your balance growing each month due to interest. Another benefit is that if you have balances on multiple credit cards, you may be able to transfer them all to one card with an introductory 0% balance transfer APR.

The best balance transfer credit cards also offer additional perks like cash back or miles, although not all cards offer something extra. The Citi® Double Cash Card is an example of a cash back card that also offers a good balance transfer offer. New cardholders can get an introductory annual interest rate of 0% on balance transfers for up to 18 months (after that it’s a variable interest rate of 16.24%-26.24%). You can earn up to 2% cash back on all purchases: 1% when you make a purchase and 1% when you settle your balance. It’s a smart incentive to help you stay on top of your credit card bills after you’ve paid off your debt.

If you want to earn points, miles or cash back on future purchases, but need to settle a long-term balance first, a balance transfer can be a good stepping stone.

How Do You Transfer A Balance From One Credit Card To Another

The interest-free period for the balance transfer offer is only temporary. If you can’t pay off the entire debt within that time frame, you’ll end up paying a double-digit APR again. Also note that most credit card issuers charge a prepaid balance transfer fee. If you’re transferring a large balance and don’t have the cash to pay the fee, a balance transfer may not be the right move for you.

Airtel Balance Transfer (updated Tips)

The biggest disadvantage of balance transfers is simply that they are not available to everyone. Credit card issuers that have 0% APR introductory offers can be strict about approval and often prefer borrowers with good to excellent credit scores. If that’s not you, Kelly says, focus on paying down debt so you can boost your score.

“Do it without the 0% [annual interest rate offer] and work diligently to reduce your debt,” says Kelly, “because as you reduce your credit card debt, your score will go up.”

Editorial team. This content has not been reviewed or approved by any of our affiliate partners or other third parties. You can use a balance transfer to move debt from one credit card to another, saving you money on interest during the 0% APR introductory period.

At , one of our priorities is consumer loans and financial education. This post may contain links and references to one or more of our partners, but we provide an objective view to help you make the best decisions. For more information, see our Editorial Policy.

Re: I Need To Transfer A Balance From One Credit Card To Another Credit Card, Both Set Up As Vend

When you use a balance transfer credit card, you can save money by transferring your existing credit card balance to a new card that charges low or no interest for a period of time. Balance transfer credit cards often charge 0% interest for a year or more.

Before transferring a balance, it’s important to weigh the benefits of doing so against any fees you’ll pay and the likelihood of paying off the debt by the end of the 0% introductory period. Here’s what’s important to know about balance transfer credit cards.

The purpose of a balance transfer is to save money on interest while paying off credit card debt. You can transfer credit card balances to a new card, but you’re usually not allowed to transfer balances from one card to another card issued by the same company or any of its subsidiaries.

How Do You Transfer A Balance From One Credit Card To Another

In addition to credit card debt, you may be able to move other types of debt, such as personal loans, directly to a balance transfer credit card. Or your card issuer may offer paper checks that you can use to pay off balances on other accounts, such as car loans or home equity lines of credit (HELOCs). The amount you pay by check will then be added to your Balance Transfer Card balance and accrue interest at the promotional Annual Percentage Rate (APR).

How To Transfer Credit Card Balances

The amount a balance transfer can save depends on the new interest rate you receive and the length of the 0% APR promotional period.

For example, let’s say you have a $3,000 balance on a credit card with an APR of 16.3%. Your minimum monthly payment would be $90 and it would take you 152 months to pay off the balance paying only the minimum. During that time, you would pay $2,239 in interest.

Now imagine transferring your $3,000 balance to a card that has a 0% introductory APR, a 3% balance transfer fee, and an 18-month interest-free period. If you pay off the balance over 18 months, you’d pay $0 in interest and your payment would increase to about $167 per month. You’ll also pay a $90 balance transfer fee.

If you kept your monthly payment the same — $90 instead of $167 — it would take you 36 months to pay off the debt. You pay interest for 18 of those months. If the interest rate were to increase to 14.99% after the promotional period, you would pay a total of about $252 in interest. That’s still almost $2,000 in interest savings compared to not using a balance transfer card.

How Long Does A Credit Card Balance Transfer Take? — Tally

Consider a balance transfer if your credit qualifies you for a card with a 0% APR promotional period and if

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