Balance Transfer Credit Cards

A balance transfer is a way to reduce the cost of existing debt and repay it sooner than you would otherwise. In theory, you can transfer the balance remaining on any loan or line of credit to most any credit card. But certain offers are classified as “balance transfer credit cards” because they have relatively low APRs and fees for this type of transaction.

You will always have the option of requesting a balance transfer when you apply for a new credit card. And you should be able to submit such a request with an existing account, as long as you aren’t already carrying a balance from month to month. Just bear in mind that certain account terms, such as 0% intro APRs and $0 transfer fees, may only be available for a limited time after account opening.

When you’re comparing balance transfer offers, it’s worth calling your current credit card’s issuer to see what it can offer. Say that you plan on doing a balance transfer, unless you are given a significantly reduced interest rate. Your rate won’t be reduced to 0%, but even a slight APR reduction will help you save while your application for a 0% transfer is processed.

For more information, check out WalletHub’s balance transfer guide.

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.

You can check out WalletHub’s Balance Transfer Study to see each major issuer’s policies. But we’ll highlight Chase here because it offer the best balance transfer credit card on the market, in Slate.

• Chase – Credit card debt only

• Barclaycard – All consumer debt

No matter what type of balance you transfer, make sure to use a balance transfer calculator to plan your payments and confirm you’re getting the best deal.

Balance transfers usually take 15 to 25 days from when you submit a balance transfer credit card application. In the meantime, it is very important that you continue making payments toward the balance being transferred, which you should send to your original creditor. If you don’t, your balance could be classified as past-due, damaging your credit standing and perhaps putting the transfer into doubt.

Once the credit card transfer is finalized, you will see a credit listed on your original account, as if a payment was made. And a corresponding balance will be listed on your balance transfer credit card account. Remember, unless you have a 0% transfer card, interest will start to accrue as soon as your balance gets transferred.

For more information, check out WalletHub’s guide on how balance transfers work.

Not really. The fees and APRs that your balance transfer credit card charges are far more important than the company that issues it or the network it’s on.

The issuer of your balance transfer credit card really only matters when it comes to rewards and customer service. Most credit card companies will not reward you with points, miles or cash back on transferred balances. But some do, at least with select cards. Furthermore, each major credit card issuer has its own distinct reputation. However, even the best rewards can’t stand up to a hefty balance transfer fee. And besides submitting your application and monthly payments, you probably won’t have much to do with the issuer of your balance transfer credit card. So better terms trump better customer service in most cases.

Your balance transfer card’s network (i.e. Visa, Mastercard, Discover or American Express) is even less important than its issuer. Card networks simply dictate where you can make purchases. And it’s best not to make purchases with a balance transfer credit card. If you do, interest will begin accruing immediately, since carrying a balance from month to month removes your grace period.

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. The total dollar amount that you can transfer to a credit card can’t exceed the credit limit you’re approved for. You won’t be able to transfer a $10,000 balance to a credit card with a $5,000 limit, for example.

It’s also worth noting that even the best balance transfer credit cards offer money-saving terms only for a limited time. Zero percent transfer deals, and other low introductory APRs, expire after a certain number of months following account opening. And fairly high regular APRs tend to take their place. Some cards have promotional balance transfer fees, too, requiring you to transfer your balance within the first 60 days to maximize your savings. So you don’t want to space out your balance transfers too much because the longer you wait, the less you’re likely to save.

Finally, you can’t count on another 0% balance transfer credit card being available to bail you out at the end of your current card’s interest-free intro period. That means you should only transfer an amount that you can afford to pay off before regular rates kick in.