How to Transfer Balance From One Credit Card to Another
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There are a few different ways to transfer balance from one credit card to another. You can do it online, over the phone, or even in person. We’ll show you how to do it so you can get the best possible rate.
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Compare interest rates.
After you’ve decided which card you want to transfer your balance to, compare the interest rates of both cards. If the interest rate on your new card is lower than the interest rate on your old card, you’ll save money on interest charges.
However, if the interest rate on your new card is higher than the interest rate on your old card, you may want to reconsider transferring your balance. In this case, you could end up paying more in interest charges than you would have if you had kept your balance on your old card.
Determine if a balance transfer fee will apply.
Most balance transfer credit cards will charge a fee of 3% to 5% of the amount you transfer. For example, if you transfer a balance of $5,000, you may be charged a transfer fee of $250. That’s why it’s important to compare the terms of different balance transfer credit cards before you apply.
Some balance transfer cards offer an introductory 0% APR on balance transfers for a limited time, usually 12 to 21 months. That means you won’t be charged interest on the transferred balance as long as you make your minimum payments on time and pay off the entire balance before the 0% APR expires. After that, the APR on your remaining balance will revert to the card’s standard rate, which could be as high as 20%.
Request the balance transfer.
There are a few ways to request a balance transfer. The simplest way is to call the customer service number on your credit card statement and ask to speak with someone about transferring your balance. You can also go online to the credit card issuer’s website and look for the balance transfer option. If you’re not sure which card you want to transfer your balance to, you can compare credit cards before you make a decision.
Once you’ve requested the balance transfer, the credit card issuer will start the process of transferring your balance. This can take a few days, so it’s important to continue making payments on your old credit card until you know the balance has been transferred.
Monitor your account.
When you’re trying to pay off debt, it’s important to keep a close eye on your account. Check your balance and statement regularly so you know how much you owe and how much progress you’re making.
If you see that your balance is getting too high, consider transferring some of it to a lower interest rate credit card. This can help you save money on interest and pay off your debt more quickly.
Here are a few things to keep in mind when you’re transferring balance from one credit card to another:
-Check the interest rate on both cards. You want to make sure you’re transferring your balance to a card with a lower interest rate so you can save money on interest.
-Compare the fees associated with each card. Some cards may have balance transfer fees that can eat into your savings.
-Make sure you can afford the monthly payments. When you transfer your balance, you may be required to make minimum monthly payments that are higher than what you’re used to paying. Make sure you can afford these payments before you transfer your balance.
