If you are looking for how to do a balance transfer on credit cards, this article is for you. When you are struggling with high-interest debts, a balance transfer is a useful tool to get out of these debts.
However, you should learn how to do it right. In this article, you will get a detailed guide on how to do balance transfers the right way.
How to do a Balance Transfer on Credit Cards
Sometimes, it can be hard to keep up with multiple debts mostly when they have high-interest rates. When you transfer these high-interest balances to a 0% APR card, it can help you save on interest charges.
It’s not hard to transfer a balance to a card. But first, you need to choose the right card to do this. Before we go into the steps on how to transfer credit card debt, let’s look at some important points.
What is a Balance Transfer Card?
A balance transfer card is simply a credit card that allows you to transfer a balance from another account. Almost all balance transfer cards come with an introductory annual percentage rate on balances for a limited period. When you apply and get approved for a balance transfer card, you can tell the issuer the type of balance you want to transfer to the card.
Also, you need to pay a fee of 3 to 5% to complete each balance transfer transaction. A good balance transfer card should come with zero interest. It should come with a 0% introductory APR for balance transfers, and a 0$ annual fee. You can also look out for cards that come with a 0$ balance transfer fee.
Transfer of Credit Card Balance
Before you decide on doing a balance transfer to consolidate your debt, you need to be sure if it’s the right option for you. There are two main factors that will determine if a balance transfer is right for you. Take a look at your current debt. If the interest is high and you need more time to completely pay them off, it is the right choice for you.
Another factor you need to consider is your credit score. It’s much easier to qualify for this card when you have a good or excellent credit score. Although, you can still get a balance transfer card with a fair credit score, the intro APR period will be shorter. With this, the next section of this article will guide you on how to do balance transfer on credit cards.
How to Transfer Balances from Credit Cards
When you are ready to transfer your balance, you should review the balance on your credit card and the interest rate. This information will help you pick the right card for you. If you are interested in managing your high-interest debt, you should read through this section of the article.
Choose a Balance Transfer Card the Suits You
It’s very important you choose a card that suits your financial needs. Consider the APR and the length of the introductory-APR time. You should also consider other fees that come with the card. When choosing a balance transfer card, it’s important you pick a card with an intro period long enough to pay down your debt.
Also take note of how long you have to transfer your balance to the new card in order to enjoy the promotional offer. This varies from card to card. The kind of fees you will be charged is also important. Card issuers charge between 3% to 5% for a balance transfer.
Apply for the Balance Transfer Card
As soon as you find a balance transfer card that suits you, you can go ahead to begin the application process. During the application process, you will get access to the card terms and conditions.
Note the credit limit on the card. some card issuers may not approve a limit that will cover the balance, they only permit a maximum balance transfer. Based on the credit card company, you may be required to apply for the card online, over the phone, or in person. After you have been approved for the card, you can take the next steps to transfer your balance.
Request a Balance Transfer
After getting a balance transfer card, the next step is to contact the card issuer. You can do this over the phone or online. Be ready to provide information about the debt you want to move. You will also provide your account information.
Also, you can use a convenience check from your issuer. Note that it takes a few days to several weeks for a balance transfer to be processed. To avoid late payment fees, still make payments to your old debt till the transaction has been confirmed.
Pay Off Your Debt
After you have successfully transferred your balance to a credit card, start paying your debts off. Pay it off according to the card terms and agreement. When the card offers promotional APR on balance transfers, you can make interest-free payments during the promotional period. However, interests will be charged after the introductory period has ended.
Frequently Asked Questions on How to do a Balance Transfer on Credit Cards
Below are some questions related to this topic. Go through them to get more information on balance transfers.
Can I Keep Transferring Credit Card Balances?
Yes, you can keep transferring credit card balances. It’s a good idea when you want to down your debt faster and become debt free. If you are ready to pay off your debt before the intro period ends, you can transfer the balance. Transferring balance multiple times is a bad idea when you’re not ready to pay off your debt.
How Long Does a Balance Transfer take from One Credit Card to another?
The period it takes to complete a balance transfer transaction depends on the credit card company. The average time for this transaction takes about 5 to 7 days. However, some credit card issuers may take about 14 to 21 days.
Will Balance Transfer Increase my Credit Limit?
When you transfer the balance to your credit card, it does not increase your limit. Also, it’s not possible to transfer a balance that is above your card limit.
How Many Times Can I do Balance Transfer on a Credit Card?
You can transfer balances to a card as many times as you want. If you have multiple card debts, you can transfer the balance on the cards to consolidate your debt. Although, each balance transfer card has its specific requirements.
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