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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.
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:
- 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.
- Account Number. This is the account number or credit card number for the account that currently has the balance.
- 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.
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Who is my creditor?
A creditor is someone who loans or is owed money. Creditors include banks and credit card companies.
Is a balance transfer a good idea?
A balance transfer is a good idea if you have good or excellent credit and make an affordable payment plan prior to applying. You generally need good credit or better to get a 0% balance transfer credit card, though these introductory periods are temporary. Most balance transfer cards have very … read full answer
show lessHow do you do a balance transfer?
To do a balance transfer, apply for a credit card with a low balance transfer APR and low fees, noting the amount you want to transfer on the application, along with information about your current creditor. If your balance transfer credit card application is approved, that new card's issuer will … read full answer
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