Balance Transfers: A Comprehensive Guide

If you want to pay off credit card debt and save money, open a balance transfer credit card. You can use your new account to simplify your repayment process, and also lower the amount of interest you’re paying on borrowed money.

This article has all the information you need to know if you’re considering a balance transfer. You’ll find out how they work, what makes them different from other options, and when it’s a good idea to consider one.

Learn more about balance transfers

Balance transfer checks are an option for those who want to shift their debt onto a credit card. This can be done with the credit card company or bank using a balance transfer and some companies also offer balance transfer checks as well.

The best balance transfer cards are those with 0% APR for an introductory period, which means you can use your account without paying interest for a certain amount of time. During this time, the balance goes towards paying off the principal and you won’t be charged any interest.

Transferring credit card debt to one card can help you save money by earning more in interest than you spend on the transfer fee.

Read about balance transfers and interest rates

Here’s how to transfer your balance:

Examine balance transfer cards: Ideally, you want a card with a 0% initial APR that lasts long enough to pay off your credit card debt in full.

Apply for a card: Once you’ve chosen a balance transfer deal that appeals to you, it’s time to submit an application. When you apply for a credit card, some companies will inquire if you intend to do any balance transfers. In that situation, balance transfers can be set up throughout the application procedure.

Transfer Money from one card to another: If you want to transfer money from your old credit card to your new credit card, you only need the account information for both cards. You’ll need the credit card with the balance and the credit card that will receive the balance.

You’ll continue making payments on your old card until the transfer process is complete. After the credit, you can make payments on the new card.

From what you can tell, you can’t transfer a balance from one card from the same company.

What you should look for in a balance transfer credit card

When selecting a bill transfer credit card, consider the following features:

  • Introductory APR: A 0% intro APR balance transfer offer is normal, so you shouldn’t pick a card with a higher rate.
  • APR during the first year: Longer is normally preferable since it gives you more time to pay off your credit card bill.
  • Balance transfer cost: The majority of credit cards levy a balance transfer fee ranging from 3% to 5% of the transaction amount.
  • Balance transfer limit: The total amount of balance transfers plus any applicable balance transfer fees cannot exceed the credit limit of the card. Balance transfer limitations are also added to several credit cards. These can be either set sums, such as $10,000, or a percentage of your credit limit.