However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. A balance transfer can be a good idea to save money on interest charges. Balance transfers work by applying for a new card with a low introductory APR, initiating a balance transfer and paying down the balance. Some cards are good for balance transfers but others are not. A balance transfer is a type of credit card transaction in which debt is moved from one account to another.
For those paying down high-interest debt, such a move can save serious money on interest charges if done strategically. Balance transfers come with certain costs and limitations, though. And if your balance transfer card's limit is low, you might not be able to transfer your full balance.
While the exact process for balance transfers can vary widely, here are the steps you generally have to take when working with major issuers:.
To qualify for the best offers, you generally have to have good or excellent credit typically, FICO scores of at least Initiate the balance transfer. Sometimes, balance transfers can also be initiated using convenience checks , or the checks issuers send you in the mail.
Before using one, though, read the terms to find out if it will count as a balance transfer and what your interest rate will be. Once your balance transfer is underway, keep in mind that it can take one week or up to a month for your balance transfer to be complete.
The balance transfer process can vary slightly by issuer. The following guides can help you transfer balances without any problems:. While your balance transfer card might give you an introductory 0 percent APR for up to 21 billing cycles, all good things come to an end. After all, paying down balances is infinitely harder if you continue to work against your goals by using your credit card for purchases.
Figuring out what a balance transfer is could be the first step to becoming debt-free, but do your research first. For example, you should compare all the top balance transfer credit cards on the market today and go through all your bills to find out exactly how much you owe and to whom.
How We Make Money. Written by Holly D. Written by. Holly D. Holly Johnson writes expert content on personal finance, credit cards, loyalty and insurance topics. In addition to writing for Bankrate and CreditCards. Barry Bridges. Former Senior Editor Barry Bridges has been writing about credit cards, personal loans, mortgages and other personal finance products since Before joining Bankrate, he was ….
Edited By Liliana Hall. Edited by. Liliana Hall. Liliana is an editor and journalist with a background in feature writing on the Bankrate Credit Cards team.
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Bankrate Logo Editorial Integrity. Key Principles We value your trust. Bankrate Logo Insurance Disclosure. Purchase rate Annual Fee No annual fee. So consider whether you can repay the balance during this time. Any fees you have to pay — most balance transfers come with a transfer fee. If you need access to extra cash — make sure you know the fees and interest charges for withdrawing cash.
You can only transfer balances from cards issued by other banks. Balance transfer cards can be a great way to pay off credit card balances, but it really does pay to understand how they work.
So check our guides to balance transfers to learn more. Compare balance transfers. Here are the different types you can choose from:. Combo cards Looking for the best of both worlds?
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