<p><span style="font-weight: 400;">You’ve been hearing about a balance transfer credit card that can help get rid of your high-interest credit card debt, but you don’t know much about the process. Here’s what you need to know.</span></p>
<!-- WP QUADS Content Ad Plugin v. 3.0.1 -->
<div class="quads-location quads-ad135805 " id="quads-ad135805" style="float:none;text-align:center;padding:0px 0 0px 0;" data-lazydelay="3000">

</div>

<p><b>Balance Transfer</b></p>
<p><span style="font-weight: 400;">So, what is a balance transfer? It involves what’s called a balance transfer credit card, which usually offers a low- or 0%-interest for an introductory period of about 12 to 18 months. The idea is that, if you qualify for one of these cards, you can shift your high-interest credit cards to it and save money and pay off your debt faster. Note that you will pay a balance transfer fee of about 3%, however.</span></p>
<p><b>How Do Balance Transfers Work?</b></p>
<!-- WP QUADS Content Ad Plugin v. 3.0.1 -->
<div class="quads-location quads-ad135804 " id="quads-ad135804" style="float:none;text-align:center;padding:0px 0 0px 0;" data-lazydelay="3000">

</div>

<p><span style="font-weight: 400;">After you move a balance to plastic, that card’s issuer </span><a href="https://wallethub.com/edu/cc/balance-transfer/19577"><span style="font-weight: 400;">satisfies your debt</span></a><span style="font-weight: 400;"> with the original lenderand transfers your obligation to the new card company. The original lender may not block you from shifting away a balance.</span></p>
<p><span style="font-weight: 400;">To do a balance transfer, you’ll need the account number for your existing balance, the dollar amount you want to transfer, and standard information such as your social security number.</span></p>
<p><span style="font-weight: 400;">Once you complete a transfer, you must pay at least the minimum monthly amount the issuer requires. If you carry much of a balance beyond the introductory or promotional period, though, your balance will be subject to the new higher interest rate. </span></p>
<p><b>Balance Transfer Tips</b></p>
<!-- WP QUADS Content Ad Plugin v. 3.0.1 -->
<div class="quads-location quads-ad135804 " id="quads-ad135804" style="float:none;text-align:center;padding:0px 0 0px 0;" data-lazydelay="3000">

</div>

<p><i><span style="font-weight: 400;">Check your credit score</span></i><span style="font-weight: 400;">. Because you need good or excellent credit to qualify for one of those 0% balance transfer credit cards, you should find out where you stand. See </span><a href="https://www.bills.com/debtconsolidation/debtconsolidationloansbadcredit"><span style="font-weight: 400;">debt consolidation for bad credit</span></a><span style="font-weight: 400;">.</span></p>
<p><i><span style="font-weight: 400;">Decide How Much to Transfer</span></i><span style="font-weight: 400;">. You don’t have to transfer your entire balance. In fact, partial transfers let you benefit from a card’s promotional period without fretting about paying off the entire balance before the regular rate becomes effective.</span></p>
<p><span style="font-weight: 400;">To figure out what amount you should transfer, pinpoint the monthly payments that you can easily make, and multiply that by the number of months you’ll have a low introductory rate.</span></p>
<p><b>Don’t Forget About Fees</b></p>
<!-- WP QUADS Content Ad Plugin v. 3.0.1 -->
<div class="quads-location quads-ad135804 " id="quads-ad135804" style="float:none;text-align:center;padding:0px 0 0px 0;" data-lazydelay="3000">

</div>

<p><span style="font-weight: 400;">You may be so excited to shift that high-interest debt that you overlook balance transfer fees. Such fees can be pricey but are often not clearly marked on credit card applications. Look carefully.</span></p>
<p><b>Make a Payoff Plan</b></p>
<p><span style="font-weight: 400;">You must go into balance transfer deliberately and thoughtfully. So, you should decide ahead of time how much you plan to shift, and when you can pay the debt off. You can use a </span><a href="https://wallethub.com/credit-card-calculator"><span style="font-weight: 400;">credit card payoff calculator</span></a><span style="font-weight: 400;"> to determine what monthly amounts you’ll need to make to pay off your debt by the time the regular interest rates become effective.</span></p>
<p><b>Don’t Take 0% Rates for Granted</b></p>
<!-- WP QUADS Content Ad Plugin v. 3.0.1 -->
<div class="quads-location quads-ad135804 " id="quads-ad135804" style="float:none;text-align:center;padding:0px 0 0px 0;" data-lazydelay="3000">

</div>

<p><span style="font-weight: 400;">It’s not a given that 0% balance transfer credit cards will be available. Therefore, you should treat every balance transfer you make as one on which you must pay regular rates at the end of the promotional period. </span></p>
<p><b>Shop Around</b></p>
<p><span style="font-weight: 400;">You shouldn’t have to look very hard to find a balance transfer card, although getting the best deal means determining which ones you qualify for, then sizing up the total available savings for each. Such savings hinge on interest rates, fees, and, if applicable, introductory period.</span></p>
<p><b>Keep Your Original Account Open</b></p>
<!-- WP QUADS Content Ad Plugin v. 3.0.1 -->
<div class="quads-location quads-ad135804 " id="quads-ad135804" style="float:none;text-align:center;padding:0px 0 0px 0;" data-lazydelay="3000">

</div>

<p><span style="font-weight: 400;">Even if you don’t plan to keep using the account from which you shift a balance, keep it open. This will ensure that your overall credit utilization rate won’t take a negative turn.</span></p>
<p><span style="font-weight: 400;">Now you know what a balance transfer is. If you take the info, incorporate it into your plan, and stay the course, you’ll be on solid financial ground in no time. Get going.</span></p>

<div class="essb_links essb_counter_modern_right essb_displayed_bottom essb_share essb_template_default4-retina essb_594831379 print-no" id="essb_displayed_bottom_594831379" data-essb-postid="139197" data-essb-position="bottom" data-essb-button-style="button" data-essb-template="default4-retina" data-essb-counter-pos="right" data-essb-url="https://www.explosion.com/139197/what-is-a-balance-transfer/" data-essb-fullurl="https://www.explosion.com/139197/what-is-a-balance-transfer/" data-essb-instance="594831379"><ul class="essb_links_list"><li class="essb_item essb_link_facebook nolightbox essb_link_svg_icon"> <a href="https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.explosion.com%2F139197%2Fwhat-is-a-balance-transfer%2F&t=What+Is+a+Balance+Transfer%3F" title="Share on Share" onclick="essb.window(&#39;https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fwww.explosion.com%2F139197%2Fwhat-is-a-balance-transfer%2F&t=What+Is+a+Balance+Transfer%3F&#39;,&#39;facebook&#39;,&#39;594831379&#39;); return false;" target="_blank" rel="nofollow" class="nolightbox essb-s-bg-facebook essb-s-c-light essb-s-ch-light essb-s-bgh-dark essb-s-bg-network" ><span class="essb_icon essb_icon_facebook"><svg class="essb-svg-icon essb-svg-icon-facebook" aria-hidden="true" role="img" focusable="false" xmlns="http://www.w3.org/2000/svg" width="16" height="16" viewBox="0 0 16 16"><path d="M16 8.049c0-4.446-3.582-8.05-8-8.05C3.58 0-.002 3.603-.002 8.05c0 4.017 2.926 7.347 6.75 7.951v-5.625h-2.03V8.05H6.75V6.275c0-2.017 1.195-3.131 3.022-3.131.876 0 1.791.157 1.791.157v1.98h-1.009c-.993 0-1.303.621-1.303 1.258v1.51h2.218l-.354 2.326H9.25V16c3.824-.604 6.75-3.934 6.75-7.951"></path></svg></span><span class="essb_network_name">Share</span></a></li><li class="essb_item essb_link_twitter nolightbox essb_link_twitter_x essb_link_svg_icon"> <a href="https://x.com/intent/post?text=What%20Is%20a%20Balance%20Transfer%3F&;url=https%3A%2F%2Fwww.explosion.com%2F139197%2Fwhat-is-a-balance-transfer%2F" title="Share on Tweet" onclick="essb.window(&#39;https://x.com/intent/post?text=What%20Is%20a%20Balance%20Transfer%3F&;url=https%3A%2F%2Fwww.explosion.com%2F139197%2Fwhat-is-a-balance-transfer%2F&#39;,&#39;twitter&#39;,&#39;594831379&#39;); return false;" target="_blank" rel="nofollow" class="nolightbox essb-s-bg-twitter essb-s-c-light essb-s-ch-light essb-s-bgh-dark essb-s-bg-network" ><span class="essb_icon essb_icon_twitter_x"><svg class="essb-svg-icon essb-svg-icon-twitter_x" aria-hidden="true" role="img" focusable="false" viewBox="0 0 24 24"><path d="M18.244 2.25h3.308l-7.227 8.26 8.502 11.24H16.17l-5.214-6.817L4.99 21.75H1.68l7.73-8.835L1.254 2.25H8.08l4.713 6.231zm-1.161 17.52h1.833L7.084 4.126H5.117z"></path></svg></span><span class="essb_network_name">Tweet</span></a></li><li class="essb_item essb_link_pinterest nolightbox essb_link_svg_icon"> <a href="#" title="Share on Pin It" onclick="essb.pinterest_picker(&#39;594831379&#39;); return false;" target="_blank" rel="nofollow" class="nolightbox essb-s-bg-pinterest essb-s-c-light essb-s-ch-light essb-s-bgh-dark essb-s-bg-network" ><span class="essb_icon essb_icon_pinterest"><svg class="essb-svg-icon essb-svg-icon-pinterest" aria-hidden="true" role="img" focusable="false" width="32" height="32" viewBox="0 0 32 32" xmlns="http://www.w3.org/2000/svg"><path d="M10.625 12.25c0-1.375 0.313-2.5 1.063-3.438 0.688-0.938 1.563-1.438 2.563-1.438 0.813 0 1.438 0.25 1.875 0.813s0.688 1.25 0.688 2.063c0 0.5-0.125 1.125-0.313 1.813-0.188 0.75-0.375 1.625-0.688 2.563-0.313 1-0.563 1.75-0.688 2.313-0.25 1-0.063 1.875 0.563 2.625 0.625 0.688 1.438 1.063 2.438 1.063 1.75 0 3.188-1 4.313-2.938 1.125-2 1.688-4.375 1.688-7.188 0-2.125-0.688-3.875-2.063-5.25-1.375-1.313-3.313-2-5.813-2-2.813 0-5.063 0.875-6.75 2.688-1.75 1.75-2.625 3.875-2.625 6.375 0 1.5 0.438 2.75 1.25 3.75 0.313 0.313 0.375 0.688 0.313 1.063-0.125 0.313-0.25 0.813-0.375 1.5-0.063 0.25-0.188 0.438-0.375 0.5s-0.375 0.063-0.563 0c-1.313-0.563-2.25-1.438-2.938-2.75s-1-2.813-1-4.5c0-1.125 0.188-2.188 0.563-3.313s0.875-2.188 1.625-3.188c0.75-1.063 1.688-1.938 2.688-2.75 1.063-0.813 2.313-1.438 3.875-1.938 1.5-0.438 3.125-0.688 4.813-0.688 1.813 0 3.438 0.313 4.938 0.938 1.5 0.563 2.813 1.375 3.813 2.375 1.063 1.063 1.813 2.188 2.438 3.5 0.563 1.313 0.875 2.688 0.875 4.063 0 3.75-0.938 6.875-2.875 9.313-1.938 2.5-4.375 3.688-7.375 3.688-1 0-1.938-0.188-2.813-0.688-0.875-0.438-1.5-1-1.875-1.688-0.688 2.938-1.125 4.688-1.313 5.25-0.375 1.438-1.25 3.188-2.688 5.25h-1.313c-0.25-2.563-0.188-4.688 0.188-6.375l2.438-10.313c-0.375-0.813-0.563-1.813-0.563-3.063z"></path></svg></span><span class="essb_network_name">Pin It</span></a></li><li class="essb_item essb_link_mail nolightbox essb_link_svg_icon"> <a href="#" title="Share on Email" onclick="essb_open_mailform(&#39;594831379&#39;); return false;" target="_blank" rel="nofollow" class="nolightbox essb-s-bg-mail essb-s-c-light essb-s-ch-light essb-s-bgh-dark essb-s-bg-network" ><span class="essb_icon essb_icon_mail"><svg class="essb-svg-icon essb-svg-icon-mail" aria-hidden="true" role="img" focusable="false" width="32" height="32" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 60 60"><polygon points="60,50.234 60,9.944 39.482,30.536 " /><polygon points="0,9.941 0,50.234 20.519,30.535 " /><path d="M1.387,8.5l21.002,21.08c0.121,0.051,0.471,0.415,0.517,0.519l5.941,5.963c0.635,0.591,1.672,0.59,2.333-0.025l5.911-5.933c0.046-0.105,0.4-0.473,0.522-0.524L58.615,8.5H1.387z" /><path d="M38.07,31.954l-5.5,5.52c-0.73,0.68-1.657,1.019-2.58,1.019c-0.914,0-1.823-0.332-2.533-0.993l-5.526-5.546L1.569,51.5h56.862L38.07,31.954z" /></svg></span><span class="essb_network_name">Email</span></a></li></ul></div>
0 Comments