Are credit card companies not offering balance transfers?

The “creditor to pay” for a balance transfer is the name of the lender or credit card company that owns the debt before the balance transfer. The reason it’s called the creditor “to pay” is that a balance transfer is essentially a payment made to that creditor by the credit card company taking on the debt. The payment is how the balance is transferred.… read full answer

So why call it a “creditor,” then? Though balance transfers are often between two credit card companies, they aren’t always. Balances on car loans, payday loans, and mortgages can also be transferred, for example. But which debts qualify for a balance transfer will depend on the card issuer.

When you’re filling out a request for a balance transfer, you’ll need to provide a few pieces of information. Some common items on a balance transfer request form include:

1. Creditor to Pay / Creditor Name. Both refer to the lender or credit card company that currently holds the debt – the one you’re transferring the debt from.
2. Account Number. This is the account number or credit card number for the account that currently has the balance.
3. Amount. This is the exact amount you’d like to transfer to the new account.

It’s important to remember that while a balance transfer does pay off the original lender, at least for the amount transferred, it does not pay off the debt. It merely shifts your repayment responsibility to the new card issuer. Also, balance transfer requests are not guaranteed to get accepted. Even when they are accepted, the full amount of the request may not be. Balance transfers take an average of 3 weeks to post to both accounts, so you need to continue making at least the minimum payment to the original lender until the balance transfer is posted.

You can do a balance transfer with the Chase Sapphire Preferred card through your online account or by calling customer service at (800) 432-3117. However, keep in mind that balance transfers with a Chase Sapphire Preferred are expensive. The card does not offer an introductory 0% APR on balance transfers.

People who shift existing credit debt to Chase Sapphire Preferred will immediately start owing interest at the card’s regular APR of 16.24% - 23.24% (V). They will also owe a transfer fee: either $5 or 5% of the amount of each transfer, whichever is greater. The point of a balance transfer is to save money, and Chase Sapphire Preferred won’t help that happen unless the APR you get on the card is a lot lower than the one on your existing debt.

Here’s how to do a Chase Sapphire Preferred balance transfer:

If you’re a current Chase Sapphire Preferred cardholder and wish to do a balance transfer, you can try to request one after you receive the card. Call customer service at (800) 432-3117 or log into your online account and choose your card. Then, enter the amount you want to transfer, verify the information and submit the request. Keep in mind that Chase only allows you to transfer credit card debt. It is also worth noting that you cannot transfer balances from other Chase accounts.

The best balance transfer credit card offers come with a promotional 0% interest rate and give you from 6 to 21 months to pay off the debt interest-free. But many balance transfer cards with 0% introductory rates tend to have high regular APRs and fees. Only a few come with no balance transfer fee.

When a 0% APR period ends, the credit card’s regular APR will kick in. That rate will apply to any unpaid balance remaining on the credit card as well as any new purchases made from that point on. The regular APR that applies when a 0% APR period expires tends to be very high, so it’s best not to leave much of a balance for it to affect.… read full answer

The only exception to this rule is a 0% interest period with a feature called deferred interest. General-purpose 0% credit cards don’t have it, but some store credit cards do. This isn’t a true 0% APR deal because the interest is still accruing while it’s “deferred,” and it will apply if you don’t pay your balance on schedule. So when the 0% APR ends on a deferred interest financing offer, you’ll be charged interest on the original purchase amount, as accrued from the purchase date, if you have even $1 of your original balance left to pay. Your deferred interest could also return prematurely if you make a late payment, and it’ll likely be a lot more expensive than a late fee. That’s why it’s very important to make on-time payments on deferred interest credit cards, and to pay off the balance before a deferred interest period is over.

Even though a credit card with a true 0% APR period won’t retroactively charge interest on purchases, be smart with these cards. Interest will apply to any balance remaining when the 0% period ends, so plan out your payments to ensure there’s little left at that point. Using a credit card payoff calculator can be a big help.