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What is meant Balance Transfer in Credit card ?Should we do this?

 What is meant  Balance Transfer in Credit card ?Should we do this?

What is meant  Balance Transfer in Credit card ?Should we do this?

Key points

  1.  Balance transfer helps to save money on interest   charges
  2. While applying fresh card balance transfer acts as on low introductory APR ,initiated the transfer and pay off down the balance
  3. Not all cards are good for balance transfer

Debts can be moved from one account to another account with the help of Balance Transfer.What is the purpose of doing so?Moving high interest debts with 0 % APR to credit card is big saving of money

A type of credit card transaction where debt is moved from one account to another is Balance transfer.

People who pay high interest debt doing this transaction can  save on money on interest charges if performed strategically. Suppose credit card that has debt moved with 0% APR offer by balance transfer can be potentially be paid off interest free.

 With some limitations and costs Balance transfer comes with some fee which is normally 3% to 4% of total .If your card limit is low ,cannot be able to transfer full balance.

Balance Transfer -How it works


Balance Transfer -Process can vary ,here are steps to follow.

Apply the card.


Apply card having an Introduction 0% APR offer on balance transfer .For best offer one must have excellent credit typically FICO scores which can be 695 at least. Generally same issuer transfers are not allowed .Suppose if you wish to transfer balance the balance from citi card, cant be transferred to same Citi card.


Balance transfer should be initiated

This can be done by online or phone information about the debt has to be required if looking to move like name of the issuer,debt amount and information on account.


Balance transfer can be initiated by convenience checks sometimes too or by check issuers send in mail. always before usage one must read the terms and conditions finding out the card will count as balance transfer and interest rate too.

Wait for it-

if the balance transfer is approved once which can take 2 weeks or longer ,the issuer pay off old account directly. The old balance and fee of the balance transfer will be shown in account.

Balance pay down.

On adding the balance in new card , its our responsibility for payments monthly wise and by paying introductory 0% APR period ,can save potentially the bundle.


Transfer cards with Good balance


 Saving balance is the goal of balance transfer and select the card minimizing costs. Balance transfer card comes with three zeros.

  • 0% introductory APR
  • $0 Annual fee
  • $0 Balance transfer fee

So using these cards debt can be paid off without spending any extra money on interest and fees . all cards have transfer fees and very rare without transfer fees. But still a card having no fee annually and o% introductory offer on balance transfer is great and valuable. charges on interest add quickly and far more costs one time 3% to 6% fee.

Note: Only to purchases some 0% APR offers apply and to save money to move over debt we must apply or need introductory 0% APR promotion on balance transfer. Ensure before the card has such offer.

Is it Necessary for Balance transfer?


if possible to pay off a balance in three or more months or the sooner ,or else cannot qualify for 0% APR offer , debts be paid off quickly at the best which is best cost effective method .Looking for higher limit and can pay some interest loan personally is good fit .Before accepting the offers one must check how much you can borrow and what interest rate too.

Generally this not good choice if there are debts that has to be paid with higher interest e and enough credit for qualify for card .with an 0% introductory APR on balance transfer. Saving interest could be made on such card with paying off balances too.


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