Tips on How to Transfer Credit Balance to Another Card
What is a balance transfer? This is the process of moving credit card debt from one credit card to another to save money on interest. When paying interest on a credit card, shifting debt to a card with a lower interest rate may enable you to reduce interest amount being charged.
It is worth noting that some balance transfer credit cards may come with a 0% annual percentage rate (APR) for a limited period. This means you can momentarily halt interest while you pay off your credit card debt.
It is recommended that you pay off your balance on time, in full, and do so monthly to avoid credit card interest on most cards. However, if you find yourself in debt, and you already have a plan to repay, it is wise to embrace balance transfer as a strategy to minimize the amount of interest you pay.
How It Works
A balance transfer is not overnight magic; you need to follow a specific set of steps for a successful process. A balance transfer can be a successful way of repaying your balance or a disaster that can result in more debt. Here are six necessary steps on how to transfer credit card balance.
Analyze Your Current Balance and Interest Rate
Before doing a balance transfer, analyze your current situation by reviewing your credit card balance and interest rate, which is expressed in APR. If, by any chance, you’re struggling with this, don’t hesitate to reach out to Boostcredit101. They will provide you with appropriate information that will assist you in selecting a necessary card for the balance transfer.
Select a Balance Transfer Card That Is Appropriate for You
After reviewing your current situation, it is time to select a balance transfer card that suits your unique financial needs. Remember, the goal is to repay your balance at a lower interest rate.
Read and Understand the Terms and Conditions of the Card
It is essential to read and understand the terms and conditions of the card before doing a balance transfer – this will help you know whether the card meets your financial needs, hence avoiding mistakes. Other details to consider are the credit limits and other restrictions on the card.
Apply for the Balance Transfer Card
After selecting the best credit card that meets your financial needs, it is time to apply for the card. Some credit cards can be applied for online by filling out the relevant information and submitting the application. Upon successful application, you can go ahead and transfer the balance to the card.
Contact the New Credit Card Organization to Do the Balance Transfer
A balance transfer can be done over the phone or online. However, the best way is to physically contact the new credit card company with a balance transfer request. The details you will need are your old credit card account number and the amount you intend to transfer to the new credit card.
Pay Off Your Balance
After your balance transfer has been approved, you can begin making payments on the new credit card. If you manage to transfer the entire balance to the new credit card, then the balance on your old credit card will be eliminated. Make a plan to pay your balance within the introductory period, when the annual percentage rate (APR) is at its lowest.