How to transfer money from one credit card to another credit card

If you want to save significant amounts on interest rates over time, in this article we will show you how to transfer money from one credit card to another credit card.

Before you start reading our article, we want to inform you that it has been written based on our opinions, without being endorsed or sponsored by any bank or card issuer.

During the first quarter of 2017, Americans paid a total of approximately 31,500 billion dollars in credit card debt, according to figures indicated by on the FederalReserve.gov website.

However, there is still a trillion dollars total outstanding on credit cards that average cardholders must continue to pay both in principal owed and interest.

Taking into account that the average interest rate on credit cards is greater than 16%, it’s quite cumbersome to keep charges like that as it can really add up to the debt.

Therefore, many consumers are taking advantage of the balance transfers between credit cards to minimize the interest charges they are paying.

That is, if you transfer your balance from a credit card with a high interest rate to another with a lower rate, you will reduce the amount of interest you pay.

You can also shorten the time it takes to eliminate your balance and become debt free.

The process of doing the above is quite simple, however, to complete a balance transfer satisfactory, you need to know the information properly.

How to transfer money from one credit card to another credit card

Check for 0% APR balance transfer offers to transfer money from one credit card to another

It’s important to note that in order to achieve an effective balance transfer between credit cards while reducing your fees, the card you’re transferring your balance to must charge a lower interest rate than the original card.

For example, if you transfer a balance of $1,000 from a card that charges 20 percent interest to another that charges 10 percent, you’ll go from paying $200 in annual interest to just $100 a year.

In fact, you can still reduce the interest rate completely, to do so, take advantage of one of the 0% APR introductory balance transfer offers, which are offered by many popular credit card issuers.

%0 APR means that you will not pay interest on balances transferred to the credit card from other cards. In some Latin countries, this type of operation is called “debt purchase promotions”.

Here we will show you some Credit cards and their introductory commission rates for purchases and transfers:

Discover it® Balance Transfer

Introduction (purchases) Introduction (transfers) Regular APR Annual quota credit needed
0% for 6 months 0% for 18 months 13.49% – 24.49% variable $0 good / excellent

Chase Freedom Unlimited®

Introduction (purchases) Introduction (transfers) Regular APR Annual quota credit needed
0% APR to 15 months 0% 15 months 16.49% – 25.24% Variable $0 good / excellent

Capital One® Quicksilver® Cash Rewards Credit Card

Introduction (purchases) Introduction (transfers) Regular APR Annual quota credit needed
0% for 15 months 0% for 15 months 15.49% – 25.49% (Variable) $0 excellent / good

Information obtained in Discover.com, CreditCards.Chase.com Y CapitalOne.com.

We suggest you check when comparing 0% APR introductory offers that this is especially applicable for balance transfers, rather than just for new purchases.

Additionally, even if they meet the introductory rates for either new purchases or balance transfers, you should also check the introductory period, as it can vary depending on the type of transaction.

In our example, notice how Discover offers 0% APR for 18 months to transfer money from one credit card to another, while Chase and Capital One offer 0% APR for 15 months.

Most cards charge fees for transferring money from one credit card to another.

Sometimes, it’s very probable that transfer money from one credit card to another not completely free, even having an interest-free offer or finding a card with a more attractive rate than the one you are currently paying.

This means that most issuers will not charge you a fee to transfer balance from a card, however, the card receiving that balance probably will.

In fact, most of the Credit cards They will charge a flat fee for each balance transfer you make to that card.

What is the fee for transferring money from one credit card to another?

Balance transfer fees between cards vary by issuer and card, but typically range from 3 percent to 5 percent of the total balance transferred.

It should be noted that most credit cards that do not charge balance transfer fees are those offered by credit unions., which require you to be a member in order to grant you one.

According to the above, some of the major card issuers offer their cards with introductory offers of 0% APR.

They may occasionally include charges for “zero balance transfer” as part of the offer, although the time you have to make the transfer without fees may be limited.

Take into account that when it comes to transfers between different cards from the same issuer, they can charge totally different introductory rates.

Always make sure to review the credit card offer terms and conditions, with this, you will determine if there is a charge for balance transfer.

In the event you are transferring balance to an existing card, details of any applicable balance transfer fees or charges can be found in the cardholder agreement.

Keep reading: What to do if you forgot to pay your credit card statement?

You can call your new issuer to transfer money from one credit card to another

First of all, remember, the method you use to transfer your balance will depend mainly on the credit card with which you are going to make the transfer.

It’s worth mentioning that many major issuers allow consumers to transfer balances to existing cards through their credit card management system, no matter which method you use.

However, smaller banks and/or credit unions may require you to complete the process over the phone or at a local branch.

To carry out the above, you need to have an account number and the balance of the credit card from which the funds are being transferred. Additionally you will need the account number of the transfer card or the card to which you are transferring the funds.

Once you have the necessary information in hand, you can call the transfer card’s customer service line or log into your online account to complete the transaction.

Remember, the exact steps to carry out a balance transfer will vary depending on the issuer.

When the balance of several of your credit cards is transferred to only one of them, you are carrying out a process of credit card debt consolidation.

Some explanations with examples

For example, Chase customers can select the “Transfer Balance” option next to the credit list that is available on the credit card statement.

However, Discover card users can make their balance transfers through the “Credit Options” menu.

In any case, We recommend that you contact your issuer, if you need help completing the online process.

An important fact for those applying for a new credit card to use as a transfer card is that you can often complete the process during the application itself.

Another example as mentioned above is the Discover it® Balance Transfer card, which allows applicants to include up to 3 balance transfer requests in the online application form.

Keep in mind that not all balance transfer transactions you make during the application will be completed if you exceed the approved credit limit.

You must make payments until the transfer is complete

It doesn’t matter which way you do the balance transfer from one credit card to another credit cardStill, the process will take time.

In fact, many issuers advise that balance transfers typically take at least 7-10 days to clear, and in other cases up to 30 days.

Being optimistic, some reviewers report that wait times are often shorter than expected, so it can take 48 hours to complete.

Whatever the case, you must keep both cards in good payment status, both the one that sends the balance and the one that receives it.

You must make at least a minimum payment on your original card until the balance transfer is complete.

It is important to know that not making a payment on either of the two cards can negatively impact your credit, so it is always advisable to go safe.

Even if you end up making a redundant payment on your original card, you won’t have to worry about losing your money. That is, any surplus must be returned as a credit to your account or as a check in case you close the account.

Balances when transferring money from one credit card to another do not normally earn rewards

Many users believe that they can get money or rewards when making balance transfers between credit cards, however, it is a wrong idea.

Currently, rewards cannot be earned on balance transfers from any credit card, including those that offer a 0% introductory APR for those transfers.

Additionally, your transferred balance does not count toward applicable spending requirements for sign-up bonuses or brand rewards.

Unfortunately, you will have to comply with the requirements in the classic way, in other words, make purchases, accumulate points and pay before the due date to avoid paying interest, unless you find a quality offer of 0% APR for new purchases.

You can review our article “Interest-free credit card: How do they work?” to learn more about these financial products.

Introductory offers don’t last forever

As mentioned earlier in this article, with more than a trillion dollars in credit card debt, millions of Americans have credit card balances that they pay interest on.

However, few people with credit cards seek to reduce such balances to prevent interest from rising by taking advantage of balance transfers and 0% APR offers.

No matter how good the offers sound, never forget that they are introductory, that is, at the end of the promotional period, you will no longer enjoy a 0% APR interest reduction.

Our recommendation: Carefully review introductory balance transfer APRs, which will automatically revert to the standard balance transfer APR for which you were approved.

Put another way, standard APRs range from 14% to 26% interest depending on your individual creditworthiness.. As for the charges, they will begin to accumulate the day after the end of your introductory period.

We advise you to consult the terms and conditions of the card offer and / or the cardholder agreement. don’t forget the fine print!

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