If you’re looking to consolidate credit card balances or other outstanding debt, a balance transfer may help. Transferring balances to a single credit card can simplify your monthly payments and potentially save you money on interest. Read on for the most common balance transfer questions and their answers.
What is a credit card balance transfer?
A credit card balance transfer allows you to move existing credit card or loan balances to a separate credit card account.
Balance transfer cards may offer a low introductory or promotional interest rate for a limited time. Remember, these introductory or promotional rates are temporary. If the balance is not paid in full by the time the introductory or promotional rate expires, the unpaid portion of the balance will begin to accrue interest charges at the standard APR (or annual percentage rate) for balance transfers on the account.
You should also note that if you transfer a balance, interest may still be charged on your purchases unless you pay your entire balance (including any balance transfers) by the due date each month. However, depending on the offer, you could also have a low intro or promo APR on purchases.
What is a balance transfer fee?
There is typically a fee when you transfer your balance from one card to another. Most credit card issuers charge this balance transfer fee, even if you have a low introductory or promotional APR offer for balance transfers on your credit card. The balance transfer fee is usually a certain percentage of the balance transferred or a flat fee, whichever is higher.
What is a balance transfer APR?
A balance transfer APR is the interest rate your credit card issuer charges on balances transferred to that card. As mentioned above, credit card issuers may offer balance transfer cards with a low introductory or promotional APR on balance transfers for a limited time. This balance transfer APR may help you repay your transferred balance faster since you can save on interest charges during the introductory or promotional period.
How long does a balance transfer promotional APR last?
Promotional APRs must last for at least 6 months but are often offered for longer. The length depends on the card issuer’s offer.
How long does a credit card balance transfer take?
The amount of time it takes for a balance transfer to be completed depends on whether you're transferring a balance to a new or existing account, as well as which credit card companies you’re working with. Generally, it can take anywhere from 2 to 21 days for a balance transfer to post to your account although with some credit card companies, it may take longer.
Can I still use my credit card after transferring the balance to another card?
A balance transfer does not automatically close or cancel your credit card, even if you transfer the entire balance to another card. You can contact the credit card issuer and close the card account if you want, but this is not part of the balance transfer process.
On the other hand, if you did not transfer the entire balance (for example, because you didn’t have enough available credit), you will still have a balance on the original card and will need to make payments until it’s fully paid.
How do I transfer credit card balances to another card?
To transfer a balance, you’ll need to follow these steps:
Request a balance transfer
If you haven’t been provided checks as part of a balance transfer offer, you won’t be able to initiate the transfer yourself. Instead, you'll need to provide the credit card company with the name of the lender, the account information, and the amount you want to transfer. How much you transfer depends on your available credit and the terms and conditions of your credit card. Your balance transfer limit may be lower than the credit limit on your account.
If you're approved for the transfer, the credit card company you're transferring the balance to will either contact the lender and pay it off or allow balance transfer funds to be sent directly to you, either through an ACH payment or a Direct Check. However, receiving funds directly may not be available for every balance transfer.
Wait for your transfer approval
It may take some time for your balance transfer to be approved. In the meantime, you will have to continue making whatever payments are due on your old card or loan.
Start to pay off your balance
After the transfer is complete, begin making payments on the transferred balance. Make sure you understand the terms and conditions of the balance transfer offer. Remember, transferring a balance doesn't close your other account: it only pays the portion of the balance transferred. Don’t neglect remaining balances on the original card or loan and, once those balances are paid off, decide whether to close the account or leave it open.
What happens if a balance transfer is denied?
Your balance transfer may be denied if your transfer exceeds your available credit or if the account with the balance you want to transfer the balance from and your balance transfer credit card are from the same lender. Reach out to the credit card issuer to find out why the balance transfer failed. If your available credit is the problem, you may be able to transfer a lower amount. Your issuer may also be able to make recommendations to help you successfully carry out a balance transfer in the future.
How do I transfer money from a credit card to my bank account?
If permitted by the terms and conditions of your offer, you may be able to transfer money from a credit card into your bank account using a balance transfer check—or an ACH payment for some balance transfers.
If your credit card company sends you balance transfer checks, you can write one out to yourself and deposit the borrowed funds into your checking or savings account.
Will I earn points, miles or cash back on a balance transfer?
In general, balance transfers are not eligible for cash back, points, miles or other rewards. You should review the offer's terms and conditions for more information.
What debts can I pay with a balance transfer?
Debts you can pay with a balance transfer can include:
- Mortgage payments, including home equity loans and lines of credit
- Other credit card balances, including store credit cards
- Auto loans
- Personal loans
- Payday loans and title loans
- Utility bills and cell phone bills
What if my balance transfer limit isn't high enough?
Balance transfers that are higher than the limit set for the offer, which may be your credit card limit, typically are not approved. If you want to request a balance transfer for more than your approved limit, contact your credit card company to see if there’s another course of action that fits your needs. You may also be able to transfer part of a balance.
What happens if I don't pay off the balance by the end of the promotional period?
If you still owe a balance at the end of the promotional period for your balance transfer offer, the standard APR for balance transfers on your credit card account will apply to the unpaid portion as well as any new balance transfers you may make. That's why it's important to choose a balance transfer card that gives you enough time to pay the balance in full.
Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.
