How to Transfer a Credit Card Balance to Another Card (2024)

FAQs

How to Transfer a Credit Card Balance to Another Card? ›

Transferring a credit card's balance to a new card requires getting the new card provider to approve the transfer. The process begins when you submit a balance transfer application. While a typical balance transfer may process in up to seven days, some card providers say it might take up to 21 days.

Transferring a credit card's balance to a new card requires getting the new card provider to approve the transfer. The process begins when you submit a balance transfer application. While a typical balance transfer may process in up to seven days, some card providers say it might take up to 21 days.

Generally, you can log onto your account and request a balance transfer through the issuer's online portal. Be prepared to provide information about the debt you're looking to move, including the issuer name, the amount of debt and the account information.

In some cases, a balance transfer can positively impact your credit scores and help you pay less interest on your debts in the long run. However, repeatedly opening new credit cards and transferring balances to them can damage your credit scores in the long run.

Balance transfer fees are typically 3 percent or 5 percent of the total balance you transfer to your new card. So, for every $10,000 in debt you move to a balance transfer credit card, you'll owe $300 or $500.

A balance transfer moves a balance from a credit card or loan to another credit card. Transferring balances with a higher annual percentage rate (APR) to a card with a lower APR can save you money on the interest you'll pay.

When you initiate a balance transfer to a new credit card account, you "move" your balance from one or more cards to the new card. The card issuer will either pay off your other balance directly or cut you a check so you can do so.

A balance transfer occurs when you move a balance from one credit card to another, and this process typically takes about five to seven days.

Transferring your balance means moving all or part of a debt from one credit card to another. People often use them to take advantage of lower – sometimes 0% – interest rates. Switching to a card with a lower interest rate lets you: pay less interest on what you currently owe (but you'll usually pay a fee)

A balance transfer generally isn't worth the cost or hassle if you can pay off your balance in three months or less. That's because balance transfers typically take at least one billing cycle to go through, and most credit cards charge balance transfer fees of 3% to 5% for moving debt.

What is the disadvantage of credit transfer? ›

A balance transfer can be a good way to pay down credit card debt. Depending on several factors, though, balance transfers can help or hurt a credit score, as well. Someone with excellent credit (a score of more than 740) may qualify for some of the best balance-transfer cards.

Credit card providers typically determine the amount of debt you can move in relation to your credit limit. Many issuers are generous, giving cardholders the ability to transfer their full credit limit, but in some cases, your transfer limit may be capped at 75 percent of your overall credit limit.

The cost of a balance transfer fee all depends on the terms set by your credit card company and the amount of debt you transfer. Often this amount falls somewhere between 3% and 5%, depending on the lender.

The pros of balance transfers include saving money on interest, consolidating debt, and possible improvement in credit score in the long run. The cons of balance transfers include balance transfer fees, high regular APRs, and above-average score requirements.

Once your balance transfer request has been processed, payment will be received by your bank or card issuer by the end of the next working day.

The minimum payment on a balance transfer is 1%-3% of the total balance on the card, depending on the card issuer. The minimum payment calculation for balance transfer credit cards is no different than a regular credit card minimum payment.

Balance transfer credit cards typically require good credit or excellent credit (scores 670 and greater) in order to qualify.

If you have credit card debt on multiple cards, it can be a good idea to consolidate it to one balance transfer card to save money on interest charges and manage your debt better. You can generally transfer as many balances as you want to a single 0% APR card, but you'll need to meet certain requirements.

However, it's important to understand that transferring a balance to a new credit card will not close the account of the original card — the balance will simply revert back to zero.

Why are credit cards not offering balance transfers? ›

Why would a balance transfer be denied? When it comes to why a card issuer would deny a balance transfer, there are two main scenarios: You apply for a new balance transfer credit card and your application isn't approved. You request a balance transfer on an already-approved card but the transfer is declined.

There's no hard-and-fast rule about how many balance transfers you can do. But individual issuers may have their own policies. For instance, you can request up to three balance transfers when applying for the BankAmericard® credit card. Your credit line will also limit the number of balance transfers you're able to do.

Besides piling on more debt, spending money on your balance transfer card might also inadvertently void a grace period on purchases — so even if you pay them off by the due date, you'll still be charged interest on them.

Credit card balance transfers are often limited to an amount equal to the account's credit limit. You typically can't transfer a balance greater than your credit limit—and you won't know your credit limit until you're approved for the account.

Is a balance transfer fee worth it? If you have a significant amount of credit card debt, the 3% balance transfer fee (or sometimes even a 5% fee) is absolutely worth paying when transferring your balance to a card that has a 0% intro APR offer, but only if you still need time to pay off a balance.

It's generally recommended that you have two to three credit card accounts at a time, in addition to other types of credit. Remember that your total available credit and your debt to credit ratio can impact your credit scores. If you have more than three credit cards, it may be hard to keep track of monthly payments.

If you transfer money to a fraudster, you have no legal right to get your money back from your bank. Using a credit or debit card can provide you with more protection.

Unfortunately, balance transfers do not count as purchases and do not earn points. You may find exceptions to this rule. A credit card might give you cash back on balances transferred during a promotional period, but this type of offer is rare.

In many cases, a balance transfer can save you money, but there is a catch: The rate is an introductory rate, meaning that it will end. Also, there will typically be a balance transfer fee ranging from 3% to 5% of the amount of your transfer.

It is not bad to have a lot of credit cards with zero balance because positive information will appear on your credit reports each month since all of the accounts are current. Having credit cards with zero balance also results in a low credit utilization ratio, which is good for your credit score, too.

Should I have 3 credit cards? ›

If your goal is to get or maintain a good credit score, two to three credit card accounts, in addition to other types of credit, are generally recommended. This combination may help you improve your credit mix. Lenders and creditors like to see a wide variety of credit types on your credit report.

All major credit card companies allow you to transfer a balance from another issuer's credit card but not one of their own. Some issuers also allow you transfer other types of debt, such as a balance from an auto loan, student loan, payday loan, mortgage, etc.

If you're considering transferring a balance from a rewards card, you might be worried about losing your rewards points. However, balance transfers are generally treated as a payment from your new creditor (the balance transfer card) to your old card. The good news is, you won't lose any rewards earned.

Your credit limit is too low

The issuer will hold your balance transfer request until they are able to confirm the amount to transfer in relation to your credit limit. If your credit limit is lower than the amount of money you requested to transfer from another card, the issuer will likely reject the request.

You can apply for a balance transfer card online in a matter of minutes. To apply, you'll need to provide some basic personal and financial data, such as your name, address, Social Security number and income. In some cases, you can begin the process of transferring balances as part of your application.

A good guideline is the 30% rule: Use no more than 30% of your credit limit to keep your debt-to-credit ratio strong. Staying under 10% is even better. In a real-life budget, the 30% rule works like this: If you have a card with a $1,000 credit limit, it's best not to have more than a $300 balance at any time.

There's no such thing as a bad number of credit cards to have, but having more cards than you can successfully manage may do more harm than good. On the positive side, having different cards can prevent you from overspending on a single card—and help you save money, earn rewards, and lower your credit utilization.

Credit bureaus suggest that five or more accounts — which can be a mix of cards and loans — is a reasonable number to build toward over time. Having very few accounts can make it hard for scoring models to render a score for you.