How to Transfer a Credit Card Balance in 3 Simple Steps
Sep 21, · A balance transfer is a process that lets you move debt on a credit card or from a loan to a different credit card. You’ll still have to repay the debt, but a balance transfer could help you combine multiple payments onto one card. Apr 09, · A balance transfer is the process of transferring high-interest debt from one or more credit cards to another card with a lower interest rate. This will help you pay off debt faster, since more of your payments will go toward the principal balance each month instead of toward interest charges. How does a balance transfer work?
We think it's important for you to understand how we make money. It's pretty simple, actually. The offers for financial products you see on our platform come from companies who pay us. The money we make helps us balabce you access to free credit scores and reports and helps us create our other great tools and educational materials. Compensation may factor into how and where products appear on our platform and in what order. But since we generally make money when you find an offer you like and get, we try to show you offers we think are a good match for you.
That's why we provide features like your Approval Odds and savings estimates. Of course, the offers on our platform don't represent all how to change login id in axis bank products out there, but our goal is to show you as many great options as we can. So what can you do? One option to consider is a balance transfer.
A balance transfer is the process of transferring debt from one credit card to another credit card, usually to one with a lower interest rate. You may be able to combine multiple credit card balances by transferring them to a balance transfer card. This can make it easier to manage your payments. A major benefit of fard a balance transfer is the potential to save money on interest. That what is transfer balance in credit card the money you do put toward your debt is not just getting eaten up by interest, but instead paying down the principal balance.
Depending on the card you get approved for, you may be how to use the exercise wheel to move your debt what is casual fine dining a credit ccredit that has a lower interest rate and more favorable terms. You may even be able to find ehat balance transfer card that offers perks that can earn you rewards.
But you might want to wait until your transferred balance is paid off before you take on new credit card debt. Worse yet, you may not pay off your existing debt within the promotional period and end up just shuffling ia debt around without actually saving money.
You can end up in even more debt this way. In order to get approved for a balance transfer credit card, you typically need good credit scores to qualify. Your credit scores will also help determine if you are approved for the best APR. If what is transfer balance in credit card get approved for a low interest rate and pay off your debt during the promotional period, you may be able to save money on interest and be debt-free sooner.
It could cars be a good idea to make sure you have addressed the reason behind your credit card debt before you apply for a new card. Weigh these pros and cons carefully to help decide if a balance transfer credit card is a good option for your financial situation.
If taking action makes sense for you, keep reading to learn how to do a balance transfer. Image: Woman using laptop considers balance transfer pros and cons. In a Nutshell A balance transfer can be a great way to save money on interest and get out of debt. Written by: Melanie Lockert.
Advertiser Disclosure We think it's important for you to understand how we make money. About the author: Melanie Lockert is a freelance writer and editor currently living in Portland, Oregon. She is passionate about education, financial literacy and empowering people to take control of thei… Read more.
And how to decide if getting one is the right step for you
Nov 09, · A balance transfer is a type of credit card transaction in which debt is moved from one account to another. For those paying down high-interest debt, such a move can save serious money on interest. Dec 08, · A balance transfer is the process of transferring debt from one credit card to another credit card, usually to one with a lower interest rate. This can be a great option, but if you’re not careful or aware of the potential drawbacks, you could wind up with even more debt.
To learn how to do a balance transfer , review this step-by-step process:. First, evaluate approaches for your credit card debt situation. Will you transfer the balance of only one card, or will you consolidate debt from multiple high-interest cards onto one card? Do you have a target date in mind for being debt free? This information will make choosing the best balance transfer card easier. A balance transfer is best when you can move debt from a high-interest card to a lower-interest card.
However, keep your credit utilization ratio the amount of your debt compared to your available credit low. Ensure your existing credit card accounts and credit history are in good standing before taking action. Most balance transfer cards require a good to excellent credit score. The first option will save you the most money on interest. For the second option, determine whether your existing lower-interest card can support the transfer without getting maxed out. To transfer debt to a card you own, skip to Step 5, below.
Many balance transfer card offers are available , so focus on cards that fit your financial needs. Pay close attention to the following terms:. Length of Zero-Interest Deal. Most range between 12 and 21 months, but watch for promotions spanning longer periods, which give extra time for transferred debt reduction and cutting the amount you need to pay monthly.
Balance Transfer Fee. Seek low-fee cards, and figure out each card's fees. To calculate potential balance transfer fees, follow this formula. Transfer Deadlines. To qualify for the introductory APR deal or discount on any transfer fee, a quick balance transfer may be necessary. To enjoy the entire interest-free period, initiate balance transfers right away. Credit Score Requirements. If approved, your credit limit may be too low for your balance transfer goals.
Focus on cards compatible with your credit profile. Take the total amount of debt you'll transfer to the card and add the balance-transfer fee amount to it. This is the total balance transfer cost. If the minimum monthly payment is too high for your budget, find another card with a longer introductory APR offer, to spread out and reduce the monthly payment.
This is the easiest part. An online credit card application only requires a few clicks. The issuing bank may just need more time. Wait for mailed information before applying for another card.
Get ready for the balance transfer to your new card. Request a balance transfer online or by phone. Be patient. The transfer process may take anywhere from a few business days to a few weeks for new card accounts.
Tips to keep you on track with balance transfer repayment:. Balance transfers are a useful credit card feature that can save you big dollars in interest costs, over time. Now that you know how to do a balance transfer, check out which cards The Balance has deemed best for balance transfers. Citizens Bank. Regions Bank. Bank of America. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile.
Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Credit Cards Credit Cards Part of. Key Terms. Getting Out of Debt. Table of Contents Expand. Table of Contents. Step 2: Decide Where to Transfer Debt. Step 3: Review Card Offer Terms. Step 4: Analyze Your Top Picks.
Step 5: Apply for the New Card. Step 6: Gather Information. Step 7: Request a Balance Transfer. Step 8: Make a Plan. Full Bio Follow Linkedin. Follow Twitter. Sienna is a credit card and credit card news expert whose work has been cited by major news outlets and government agencies.
She holds a journalism degree from the University of Wisconsin Oshkosh. Read The Balance's editorial policies. Most issuers prevent balance transfers to a new card from the same issuer. Figure out any restrictions such as these, before applying for a new card. Article Sources. Part Of. Your Privacy Rights. To change or withdraw your consent choices for TheBalance. At any time, you can update your settings through the "EU Privacy" link at the bottom of any page. These choices will be signaled globally to our partners and will not affect browsing data.
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