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A general doubt of many people is that of How to Transfer Money from one Credit Card to Another, since many people prefer to use credit cards than other types of cards, for all the advantages that these types of cards have with all their clients.
That is why, in our article on How to Transfer Money from one Credit Card to Another, we will explain everything you need to know. If you want to know , keep reading!
Table of Contents
- Transfer Money from one Credit Card to Another: Check
- Transfer Money from one Credit Card to Another: Charges
- Transfer Money from one Credit Card to Another: Call the Issuer
- Transfer Money from one Credit Card to Another: Make your Payments
- Do Transfer Balances earn Rewards?
- Introductory Offers
Transfer Money from one Credit Card to Another: Verify
It is essential to point out that for How to Transfer Money from one Credit Card to another positive and at the same time minimize your commissions, the card to which you transfer your balance must have 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.
By the way, you can still minimize the interest rate altogether by taking advantage of one of the 0% APR introductory balance transfer offers offered by many major credit card issuers.
%0 APR means you will not pay interest on balances transferred to the credit card from other cards. In certain Latin territories, this type of operation is called “debt purchase promotions”.
We suggest that you check when matching introductory 0% APR offers that the 0% APR is especially applicable to balance transfers, rather than just new purchases.
Additionally, even if they comply with the introduction rates, whether for new purchases or balance transfers, you must also check the introduction period, because it can vary according to the type of transaction.
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.
Transfer Money from one Credit Card to Another: Charges
Sometimes, it is quite possible that transferring money from one credit card to another is not entirely free, still 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, it is possible that the receiving card of that balance does. By the way, most credit cards will charge a flat fee for each balance transfer you make to that card.
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 of the credit cards that do not charge commissions for balance transfers are those offered by credit unions , which need you to be a member in order to grant you one.
Consenting to the latter, certain major card issuers offer their cards with 0% APR introductory offers. They rarely have the possibility of integrating “zero balance transfer” fees as part of the offer, even though the time you have to make the transfer without fees could be reduced.
Keep in mind that once we talk about transfers between different cards from the same issuer, they have the possibility of charging completely different introductory rates.
Always keep in mind to check the terms and conditions of the credit card offer. With this, you will determine if there is a charge for balance transfer. In the event you transfer balance to an existing card, details of any applicable balance transfer fees or charges can be found in the cardholder consent.
Transfer Money from one Credit Card to Another: Call the Issuer
In the first instance, remember, the procedure you use to transfer your balance will depend primarily on the credit card with which you are going to make the transfer.
It’s worth noting that several major issuers allow customers to transfer balances to existing cards through the credit card management system, no matter what procedure 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 do the above, you need to have an account number and the balance of the credit card from which the funds are transferred. Additionally you will need the account number of the transfer card or the card to which you are transferring the funds.
When you have the basic information at hand , you can call the transfer card buyer service line or log in to your online account to complete the transaction. Remember, the precise steps to make a balance transfer will vary depending on the issuer.
Once the balance of numerous of your credit cards is transferred to a single one of them, you are carrying out a credit card debt consolidation process.
One example is that Chase consumers have the ability to choose the “Transfer Balance” choice with the credit list that is available on the credit card statement.
However, Discover card users have the ability to make their balance transfers through the “Credit Options” menu. Be that as it may, we suggest you contact your issuer if you need help completing the online process.
Transfer Money from one Credit Card to Another: Make your Payments
No matter how you do the balance transfer from one credit card to another credit card, the process is still going to take time . By the way, several issuers warn that balance transfers usually take at least 7-10 days to be accepted, and sometimes up to 30 days.
Being optimistic, some reviewers report that wait times tend to be shorter than desired, thus they can take up to 48 hours to complete.
Whatever the situation, 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 essential to know that not making a payment on any person of both cards can have a negative impact on your credit, for which it is always advisable to be 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 has to be returned as a credit to your account or as a check in case you close the posting.
Do Transfer Balances earn Rewards?
Another important point on How to Transfer Money from one Credit Card to another, is if these balances earn some kind of reward. Several users believe that they have the possibility to get money or rewards once balance transfers between credit cards are made, however, this is totally wrong.
Currently, you cannot have rewards through balance transfers from or a credit card, including those that give an introductory 0% 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 carry out the requirements in the traditional way, in other words, make purchases, collect points of view and pay before the due date to avoid paying interest, unless you find a quality offer of 0 % APR for new purchases.
To finish with How to Transfer Money from one Credit Card to Another, few people with credit cards seek to minimize these balances to avoid rising interest rates 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 the introductory balance transfer APRs, which will automatically revert to the standard balance transfer APR for which you’ve been approved.
In other words, standard APRs range from 14% to 26% interest depending on your personal creditworthiness. Regarding the charges, they will begin to accumulate the day after the end of your introductory period. An important tip is to read the terms and conditions of the card offers.