How does a balance transfer work

How does a balance transfer work -

Update: September 15, 2015

Are you paying too much in credit card interest and looking for an option to save money? If so, then a balance transfer may be the answer for you.

What is a balance transfer?

A balance transfer allows you to take full or partial balance of your credit cards and transferring a new credit card. Complete a balance transfer, it is easier to repay old debt because your new credit card might be a lower APR or 0% introductory APR for an extended period of time, saving you more money in the long term.

How does a balance transfer?

Balance transfers can seem quite complicated, but they are fairly simple to complete. The steps below detail the necessary actions you must take to complete the transfer.

1. Apply for a new credit card: If you plan to complete a balance transfer, you must first find the best card for your situation. While you are looking for a credit card, you should look for two main characteristics: a long introductory APR on balance transfers and little or no balance transfer fee. More April intro lasts, the more time you will pay the balance. This means that if you have more balance, you can request a card with an intro of 18 months in April on a map with only a 12-month intro April

Need help to find the best credit cards for balance transfer? We have detailed some of the best credit cards for balance transfers below.

The best balance transfer card: Chase Slate

Chase Slate is the best option for a transfer credit card balance, because it has everything you need to save the most money transfer. This card offers a generous 0% Intro APR on balance transfers and purchases for 15 months and no balance transfer fee if the transfer is completed in the first 60 days of membership card. As if the 0% APR and no balance transfer fee is not good enough, Chase Slate also has no annual fee. To sweeten the deal, people simply "good" credit (often considered the lowest score of 650 credit) have a chance of being approved for this card as most other balance transfer credit cards require excellent credit for approval.

The longest 0% Intro APR: Citi Simplicity Card

The Citi Simplicity (a NextAdvisor seller) is the best card for someone who needs lots of time to pay a greater balance because it offers 0% intro APR on balance transfers and purchases for 21 months. Yes, you read that right - you 21 months interest free! Although you will pay a small fee balance transfer of $ 5 or 3% of the amount transferred, whichever is greater, with the card Simplicity Citi, you will never have to pay late fees, penalties or fees annual -. Never

No balance transfer fees: Mastercard Barclaycard Ring

If you are looking for a card with no balance transfer fees, Mastercard Barclaycard Ring is perfect selection for you. While this card does not offer a 0% Introductory APR that both cards are above, it has no balance transfer fee and offers a low 8% variable APR on balance transfers and purchases . The Ring Barclaycard MasterCard also has no annual fee and even allows you to decide what kind of benefits you will receive the card.

Want more options? Use our balance transfer calculator to help you determine which card is the most sense for your particular situation. You can find the calculator on the right side of this page.

2. Once accepted, initiate the transfer: Once you have been accepted for the credit card of your choice and understand the terms and conditions of your transfer, you must contact the issuer of the credit card that you transfer the money to in order to initiate the transfer. There are two main ways to request the transfer, the appeal of the bank or apply for a transfer balance online by the bank. Sometimes, you may request or initiate a balance transfer before you even approved for credit cards. For example, Chase Slate allows you to enter all balance transfer information on your application form.

The information you need to supply your new credit card to complete the transfer is the account number of the card you want to transfer the balance of the name of the bank and the amount of money you want to transfer the new map. They will need an exact amount so you should check your statement or call the bank to get the highest updated balance.

3. Check that the transfer is complete: It is important for you to continue to pay at least the minimum payments on your old credit card until you receive the statement reflecting the balance transfer because if you do not, you might miss a payment, which could have a negative impact on your credit score. Balance transfers usually take about 7 days. Once you have received the statement, the balance transfer is complete and you can focus on the payment of the new credit card, unless you still have a balance of the previous card.

It is important to note that you must not close the original card once the balance transfer is completed because it could hurt your credit. Learn more about this and the other four credit card mistakes you should avoid here.

Disclaimer: This content is not provided or commissioned by the credit card issuer. Opinions expressed here are author's alone, not those of the credit card issuer, and has not been reviewed, approved or otherwise endorsed by the credit card issuer. This content was accurate at the time of this post, but the terms and conditions of card can change at any time. This site may be compensated by the sending credit card affiliate program.