Would You like a feature Interview?
All Interviews are 100% FREE of Charge
Our experts answer readers’ credit card questions and write unbiased product reviews (here’s how we assess credit cards). In some cases, we receive a commission from our partners; however, our opinions are our own. Terms apply to offers listed on this page.
- Balance transfer credit cards don’t make debt go away, but they let users pay off debt with 0% APR.
- When considering a balance transfer, determine how much debt you need to transfer.
- Make sure to monitor your old accounts to make sure everything’s been transferred correctly.
- Compare the best balance transfer credit card offers.
Understanding Balance Transfers
Balance transfers can be a strategic financial move to consolidate debt and lower your interest expenses. This process involves transferring the outstanding balance from one credit card to another card, typically one with a lower interest rate or a promotional 0% APR offer.
It’s essential to understand the terms, such as transfer fees and the duration of the low-interest period, to ensure it actually makes sense for your financial situation. Knowing when and how to manage debt with balance transfers can help you pay down debt faster and save on interest charges in the long run.
Steps to Complete a Balance Transfer
Researching and Choosing the Right Card
Look for cards with low or no balance transfer fees and a lengthy 0% APR period. Comparing offers and reading the fine print is crucial in finding the best deal for your situation.
Applying for the Balance Transfer Card
Ensure your credit score aligns with the card issuer’s requirements. Applying for a balance transfer card usually involves a credit check, and that hard inquiry may impact your credit score.
Initiating the Balance Transfer
Once approved, contact the new card issuer to transfer the balance. You’ll need to provide details about the debts you’re transferring, including account numbers and the amounts.
Understanding the Terms and Conditions
Be aware of any fees associated with the transfer and how long the low or 0% APR period will last. It’s also important to know what the interest rate will be after the promotional period ends.
What to Do After a Balance Transfer
Once your balance transfers are completed and your old credit and loan account balances are listed at $0, your work isn’t done. You may want to stop using credit cards while you focus on debt repayment. You could even stash your cards away in a safe or a closet for safekeeping.
If you keep using credit cards to rack up more balances you can’t afford to repay, you could end this experiment worse off than when you started.
Maximizing the Benefits of a Balance Transfer
To get the most out of a balance transfer, aim to pay off your balance before the end of the promotional period. Avoid making new purchases on the card, as these may not be covered by the promotional interest rate and could lead to higher overall debt. Regularly monitor your progress and adjust your payment plan as needed to ensure you’re on track to pay off the balance in time.
Common Pitfalls to Avoid
Ignoring Balance Transfer Fees
While a 0% APR offer is appealing, balance transfer fees can add to your debt. Calculate whether the cost of the fee is worth the interest savings.
Underestimating the Importance of the Promotional Period
Failing to pay off the balance within the promotional period could result in higher interest rates than your original debt.
Continuing to Use Both Cards
Using your old card for new purchases while trying to pay off the transferred balance can defeat the purpose of consolidating your debt and can put you deeper in a financial hole.
How to Do a Balance Transfer by Bank
Many banks have similar balance transfer requirements. Learn more about balance transfers at popular banks below.
How to Do a Balance Transfer with American Express
To perform a balance transfer with American Express credit cards, begin by logging into your online account or contacting their customer service line. Once logged in or connected, navigate to the balance transfer section. Here, you’ll need to provide details such as the account number and balance of the card you’re transferring from. Additionally, you’ll need to provide the account details of your American Express card which you want the balance transferred to.
Take note of any terms, fees, or promotional rates associated with the balance transfer. After completing the necessary steps and confirming the transfer, allow some time for processing. It’s essential to continue making payments on your old card until the transfer is confirmed to avoid late fees or penalties.
How to Do a Balance Transfer with Bank of America
To initiate a balance transfer with Bank of America credit cards, start by logging into your online banking account or calling their customer service line. Once logged in or connected, navigate to the section for balance transfers. Here, you’ll need to provide information such as the account number and balance of the card you wish to transfer from. Additionally, you’ll need the account details of the Bank of America credit card which you want the balance transferred to.
Make sure to review any terms and conditions associated with the balance transfer, including fees and promotional rates. Once you’ve completed the necessary steps and confirmed the transfer, allow some time for processing. It’s important to continue making payments on your old card until the transfer is confirmed to avoid any late fees or penalties.
How to Do a Balance Transfer with Chase
To initiate a balance transfer with Chase credit cards, begin by logging into your online account or contacting their customer service. Once logged in or connected, navigate to the section for balance transfers. You’ll need to provide details such as the account number and balance of the card you’re transferring from. Additionally, provide the account details of your Chase credit card which you want the balance transferred to.
Be sure to review any terms, fees, or promotional rates associated with the balance transfer. After completing the necessary steps and confirming the transfer, allow some time for processing. It’s crucial to continue making payments on your old card until the transfer is confirmed to avoid late fees or penalties.
How to Do a Balance Transfer with Capital One
To initiate a balance transfer with Capital One credit cards, start by logging into your online account or contacting their customer service. Once logged in or connected, navigate to the balance transfer section. Here, you’ll need to provide details such as the account number and balance of the card you’re transferring from. Additionally, provide the account details of your Capital One credit card where you want the balance transferred to.
Take note of any terms, fees, or promotional rates associated with the balance transfer. After completing the necessary steps and confirming the transfer, allow some time for processing. Remember to continue making payments on your old card until the transfer is confirmed to avoid late fees or penalties.
How to Do a Balance Transfer with Citi
To initiate a balance transfer with Citibank credit cards, start by logging into your online account or contacting their customer service. Once logged in or connected, navigate to the balance transfer section. Here, you’ll need to provide details such as the account number and balance of the card you’re transferring from. Additionally, provide the account details of your Citibank credit card which you want the balance transferred to.
Take note of any terms, fees, or promotional rates associated with the balance transfer. After completing the necessary steps and confirming the transfer, allow some time for processing. It’s important to continue making payments on your old card until the transfer is confirmed to avoid late fees or penalties.
How to Do a Balance Transfer with Discover
To initiate a balance transfer with Discover credit cards, begin by logging into your online account or contacting their customer service. Once logged in or connected, navigate to the balance transfer section. Here, you’ll need to provide details such as the account number and balance of the card you’re transferring from. Additionally, provide the account details of your Discover credit card which you want the balance transferred to.
Pay attention to any terms, fees, or promotional rates associated with the balance transfer. After completing the necessary steps and confirming the transfer, allow some time for processing. It’s crucial to continue making payments on your old card until the transfer is confirmed to avoid late fees or penalties.
How to Do a Balance Transfer with Wells Fargo
To initiate a balance transfer with Wells Fargo credit cards, start by logging into your online account or contacting their customer service. Once logged in or connected, navigate to the balance transfer section. Here, you’ll need to provide details such as the account number and balance of the card you’re transferring from. Additionally, provide the account details of your Wells Fargo credit card which you want the balance transferred to.
Be sure to review any terms, fees, or promotional rates associated with the balance transfer. After completing the necessary steps and confirming the transfer, allow some time for processing. Remember to continue making payments on your old card until the transfer is confirmed to avoid late fees or penalties.
Balance Transfer Tips
Most balance transfer credit card offers require good to excellent credit, typically defined as a score of 670 or higher. However, requirements vary by issuer.
Initially, applying for a new card can lower your score due to the hard inquiry. However, if managed well, balance transfers can reduce your credit utilization ratio, potentially improving your score over time.
Yes, you can transfer balances from multiple cards as long as the total amount does not exceed the credit limit of your new balance transfer card.
Any remaining balance after the promotional period will be subject to the card’s regular APR, which could be higher than your original interest rate.
Most credit card debts are eligible, but loans from other types of financial institutions may not be. Check with the balance transfer card issuer for specific restrictions.
Holly Johnson
Freelance Writer
