How to Transfer a Balance on a Credit Card

## Understanding Balance Transfers A balance transfer involves moving debt from one credit card to another, typically to take advantage of a lower interest rate. Many cards offer promotional balance transfer rates, sometimes as low as 0% APR for periods ranging from 6 to 21 months. ### Benefits of Balance Transfers - **Lower Interest Rates**: Reduce the amount of interest you pay on your debt - **Consolidation**: Combine multiple debts into a single payment - **Debt Repayment**: Pay off your debt faster with lower interest costs - **Simplified Payments**: Make managing your debt easier with a single payment ## Steps to Complete a Balance Transfer ### 1. Evaluate Your Current Debt Before initiating a transfer, gather information about: - Your existing credit card balance - Current interest rate - Monthly payment amount - Any existing transfer fees ### 2. Research Balance Transfer Cards Look for credit cards that offer favorable terms. Websites like [NerdWallet](https://www.nerdwallet.com/) and [Credit Karma](https://www.creditkarma.com/) provide comparisons of various offers. Consider: - Length of 0% APR promotional periods - Balance transfer fees - Credit score requirements - Reasonable ongoing APR after promotion ends Popular balance transfer cards include the [Chase Slate Edge℠](https://creditcards.chase.com/balance-transfer-credit-cards/slate/edge), [Citi® Diamond Preferred® Card](https://www.citi.com/credit-cards/citi-diamond-preferred-credit-card), and [Citi Simplicity Card](https://www.citi.com/credit-cards/citi-simplicity-credit-card). ### 3. Calculate Transfer Fees Most cards charge a balance transfer fee between 3-5% of the transferred amount. For example: ``` $5,000 balance × 3% fee = $150 transfer fee ``` ### 4. Initiate the Transfer You can transfer balances in two ways: **Online Transfer:** 1. Log into your new credit card account 2. Navigate to the balance transfer section 3. Enter the account number of your old card 4. Specify the transfer amount 5. Review and confirm the transaction **Phone Transfer:** Call the number on the back of your new credit card and request assistance from a representative. > **Important**: Balance transfers typically take 5-7 business days to complete, though some may take up to 21 days. ## Best Practices and Considerations ### Do: - Transfer balances early in the promotional period - Make a plan to pay off the balance before the promotional rate expires - Continue making payments on your old card until the transfer is complete - Read all terms and conditions carefully ### Don't: - Transfer more than you can realistically pay off - Close your old credit card immediately - Make new purchases on the balance transfer card - Miss payments, which could void your promotional rate ## Impact on Credit Score Balance transfers can affect your credit score in several ways: - New credit inquiry (temporary negative impact) - Increased available credit (positive impact) - Lower credit utilization (positive impact) - New account (can be positive or negative) For more information on managing credit card debt, visit the [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/) or check your credit score for free on [Experian](https://www.experian.com/). --- Remember that balance transfers are tools for debt management, not solutions for ongoing overspending. Combine them with sound financial habits for the best results.

How to Transfer a Balance on a Credit Card

Related articles