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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. That’s true whether or not a card has a 0% introductory APR. Each card issuer calculates minimum payments differently, but it will always be a small percentage of the balance, or a fixed amount - $25, for example – whichever is higher. Card issuers will tell you the required minimum payment on your credit card statement.
One important thing to remember when you have a 0% interest period on balance transfers is that missing a minimum payment will void the deal in most cases. In other words, you must make on-time minimum monthly payments in order to keep the 0% interest period on your transferred balance. As long as you do that, the regular interest rate will only apply to the balance that remains at the end of the intro APR period.
While it’s important to consider how much you’re required to pay every month, that’s not the same thing as how much you should pay each month to get rid of your debt without paying too much in interest. The point of a balance transfer is to pay off a debt with less or no interest. So before you set your sights on paying only the minimum payment, use a balance transfer calculator to plan the specifics of how you’ll pay off your debt.
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People also ask
Does a balance transfer count as a payment?
A balance transfer does count as a payment to the original creditor to which you owed the balance. The issuer of the balance transfer card will submit payment to the old creditor for the amount of the transfer. Once the first monthly statement comes for your balance transfer card, you will need to begin making payments to that card’s issuer.
Things to Know About Credit Card Balance Transfers
- Balance transfer timelines vary by issuer....
Do balance transfers hurt your credit?
Yes, balance transfers do hurt your credit when you open a new credit card account to do the transfer. Applying for a balance transfer credit card will generate a hard inquiry on your credit report, causing a slight dip in your credit score.
If you transfer a balance to an existing credit card account, however, there is no hard inquiry and no credit score damage. A balance transfer could still result in high credit utilization, though, and allow you...
read full answer by WalletHub, Financial CompanyCan I have multiple balance transfers on the same credit card?
You can do multiple balance transfers to the same card, as long as the amounts transferred and any transfer fees do not exceed the card’s credit limit. Remember that a separate transfer fee applies to each balance that you transfer. Some issuers may also have their own restrictions.
Although you can transfer balances from multiple credit cards or various types of loans to a single credit card, the same creditor can’t be on both sides of...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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