How to Do a Credit Card Balance Transfer (2024)

How to determine if a balance transfer is right for you

Credit cards with a promotional balance transfer offer can make sense for some credit card users. These offers may allow you to move your existing balances to a new credit card with a low balance transferannual percentage rate (APR)for a limited amount of time, although most credit cards will impose a balance transfer fee on the transferred balance. Typical fees can range from 3%-5% of the balance transfer amount. You should weigh the cost of any balance transfer fees of a new card against continuing to pay off the credit card debt at the existing interest rate on your old card.

You should understand what happens if you don’t pay off the balance during the promotional period and what your minimum payment will be.

How do I transfer a balance from one card to another?

Once you’ve chosen a new card that has abalance transferoffer with a lower interest rate, apply with the credit card company to see if you get approved. Once approved, you can request yourbalance transfer.

Request a balance transfer

Follow any directions from your new credit card issuer and monitor your accounts while your balance transfer is processed and payment is made to your old creditor(s). For example, with a DiscoverÒ balance transfer card offer, an account must be open for 14 days before Discover can begin processing your balance transfer request. After that, most transfers are processed within four days.

You should continue to make all payments to your other creditor(s) until you confirm that the balance transfer was completed and the funds posted to your other account(s). You’ll need the account information for the cards you want to transfer the balance from, and you’ll need to specify the amount you wish to transfer. In general, it’s best to prioritize transferring the balances with the highest interest rates.

Follow up on your balance transfer request

Once you have requested a balance transfer, you’ll want to double-check that everything went according to plan. In addition to confirming that the proper amounts were transferred successfully, you’ll want to keep an eye on your old accounts so you can pay off any interest that may have accrued between the date you requested your balance transfer and when the transaction was completed.

Pay as much as you can toward your balance

To save as much money as possible on interest charges, pay off as much of your new balance as you can before the promotional rate expires. For example, if you have a $5,000 balance transfer and a0% introductory ratefor 18 months with a 3% balance transfer fee, you can pay off your transferred debt in 18 months with a $287 monthly payment and not pay any interest–assuming you don’t make any new purchases on your new balance transfer card.

How do I transfer a balance to my Discover Card?

To transfer a balance to yourDiscover Card, start by filing abalance transfer request. Again, your account must be open for 14 days before your request can be processed if you were recently approved for a new account. After that, most requests take no more than four days. Keep in mind that it may take some time for the credit to appear on the account you’re transferring from.

Knowing how to complete credit card balance transfers can help you consolidate your credit card debt to help you save money on interest charges. With the right approach and careful planning, you can make a balance transfer work to improve your financial standing.