If you have a balance on one credit card and want to transfer it to another, you can do that! So it’s actually not that complicated once you understand the process. Here’s how:
Calculate current balance
The first step is to add all your credit card balances. You should not include any fees, interest or payments you have made. However, do not include any payments you are planning to make in the near future. First, you need to take a credit card balance check regularly for this. As per professionals like SoFi, “A credit card balance also can indicate how high or low someone’s credit utilization ratio is,” which could help you in the future.
Verify your credit limit and interest rates
To transfer a credit balance from one card to another, you will need to verify the amount of your credit limit and interest rates.
Choose a new card
Once you’ve chosen a card, it’s time to transfer your balance. This process is quick and easy with our online application. Once you’ve applied for the new card, they’ll contact you within 24 hours to let you know if the cards are approved and ready for use. If your current credit card has an introductory offer like 0% APR on purchases and balance transfers or other promotional benefits, make sure that these apply when making your transfer.
Apply for card transfer
Once you’ve decided on the card that you want to transfer your credit balance to, it’s time to apply for it. To begin, fill out the application form with your personal details and income details. Then provide your employment details and bank account details so the bank can process your application.
Consider the fees and balance transfer limits
In addition to considering the balance transfer fee, you should also consider any interest rate changes. A sudden increase in your interest rate can negate the benefits of transferring a balance. If you’re not sure what your current credit card’s interest rate is and how it compares to other cards, you can use a tool like a free balance transfer calculator.
You’ll want to check with the issuing bank before choosing a new card with lower rates so that there are no surprises when you get your first statement.
Prepare your current card for the transfer
If you decide to transfer your credit balance from one card to another, don’t forget that closing your old card can help you avoid interest charges and other fees. But if the thought of closing your current account makes you feel uncomfortable, just make sure that any remaining balance is paid off and cancel the automatic payment that’s set up on it.
Learn about balance transfer requirements
In addition to the transfer fee and interest rate, you’ll want to know if there is a minimum amount that can be transferred, a maximum amount that can be transferred and whether or not there is an expiration date for your balance transfer. You also need to find out if the balance transfer will affect your credit score.
Most credit card companies will report this information on their website or in the terms and conditions of their offers. If you have questions about how long it takes for a balance transfer offer to go into effect or whether or not you qualify for one at all, call customer service!
Don’t worry if you can’t handle this process on your own. If you have questions or concerns, contact your credit card company or seek help from a financial counselor.