High Credit Card Bills? Balance Transfers

- Jan 6, 2020 Balance Transfers, Debit4 comments

Here is my 2020 resolution. None of my readers will be paying interest on their credit card bills anymore! There are so many options out there on how to consolidate the debt for lower or even no interest. Yet there are so many people who just sit and pay interest without even noticing that this is costing them $1,000’s of dollars a year! In the next few weeks, I plan on posting a few posts discussing the options of what can be done.

In this post, we will discuss the most famous and basic option: Balance Transfers.

How Can A Balance Transfer Help?

There are many credit card issuers which offer, what is called, an intro 0% APR period. As an incentive for you to transfer your existing balance to the new card, the credit card issuer will offer you an intro 0% APR period for as much as 21 months! You will be paying ZERO percent interest for the entire 21 months!

Check out a comprehensive list of offers available now! Here

Why Do Banks Offer It?

Very simple. Banks want your debt, because you will eventually pay a lot of interest on your credit card debit. About 25% APR! The bank wants you to transfer the balance to them because they hope that once the 21 or so months are up, then they will become rich on you.

But just because the banks want to take advantage of you, that does not mean you have to be a fool and let them. You can do the following. After the 21 months are up, just pick up another 0% APR offer from a different bank, and bingo, you will get another 21 or so months interest-free!

For Whom Will A Balance Transfer Be Helpful?

In order for you to get approved for a decent limit on the new intro 0% APR credit card, you will need to have good credit. If you’re maxed out on more than 3 credit cards, then usually new issuers will not approve you for a new credit card. Even if they do, you’ll only get approved for a very low credit limit. If that is your case, a balance transfer might not be your best solution.

Keep in mind, though, that you can transfer a balance from your name to your spouse’s. If you’re the one that is maxed out, but your spouse’s credit is clean, then you can go ahead and have your spouse apply for the new credit cards and then transfer the balances to your spouse’s new accounts.

If you are only maxed out on less than three credit cards, then you can still try to get approved for new credit cards. In my experience, I found that Citi, Capital One, and Bank Of America to be the most lenient on approving applicants with existing maxed out balances.

Again, you can check out the full list of intro 0% APR credit card offers here.

(If your spouse is maxed out or if you do not have a spouse or partner then stay tuned for a follow-up post with some more creative suggestions).

What You Need to Know Before Making a Balance Transfer

Here is what you need to know before making a balance transfer.

Penalty APR

Penalty APR is the APR you will be paying if you make a late payment. Before making a balance transfer, make sure you are familiar with how much the penalty APR will be. If you will end up being late (it happens to the best of us), not only will you be losing the intro 0% APR offer, but you may end up paying more interest now than what you were paying before you made the balance transfer.

Grace Period

When you make a purchase on a credit card, (as long as you pay your balance in full every month,) you will not have to pay interest on new purchases until after the due date on your statement. When you make a balance transfer, you will not be paying the balance in full by the first month. Remember that you will lose your grace period and end up paying interest on your new purchases from the date of the purchases. (I recommend not making any new purchases on this card rather use a different card and pay it in full every month.)

Minimum Payment

Before making a balance transfer you will want to make sure that you will be able to afford the minimum payment amount. Therefore, make sure you are familiar with how the minimum payment is calculated on your new credit card. (You can find a list here.)

You Can’t Transfer a Balance From the Same Bank

Banks do not allow you to transfer balances from one card to another credit card issued by their bank. For example, you can’t transfer a balance from one Chase credit card to another Chase credit card.

Balance Transfer Fee

Always check what the fee will be to transfer the balance. For example, on the Amex Everyday card, there is no fee to transfer a balance and you get an introductory 0% APR period for 15 months, but with the Citi Simplicity card there is a 5% fee to transfer a balance but you get an introductory 0% APR  period for 21 months! Which one is better?!?! I’ll let you decide…..

How Do I Make A Balance Transfer?

Once you’re approved for the new credit card with the intro 0% APR period, all you have to do is call the bank (or sometimes there is a balance transfer option available online as well). Tell the representative that you would like to make a balance transfer. The representative will ask you for your previous credit card issuer name and account number. They will then go ahead and read a quick disclosure, then submit the balance transfer request. Once the request is submitted, the bank will reach out to your previous credit card issuer and submit a payment for you and pay up the balance. It will take about 7-10 days until the balance will be cleared from the previous account and show up on the new account. Once the balance shows up on the new account, whoa! You just saved up to 21 months of paying as much as 24.99% interest!

Doing Multiple Balance Transfers

Credit card issuers that you have existing accounts with, often check your credit file for negative changes (soft pull) and receive alerts from the credit bureaus if your score suddenly drops dramatically. If you are going to be making multiple balance transfers at the same time, then make sure to complete all balance transfer requests within the same few days. As your credit score might go down as a result of the relocated or new balances and the other credit card issuers might lower your credit limit or close your accounts. So make sure you’re done with the balance transfers as soon as possible. I usually recommend completing balance transfers with Bank Of America first (if applicable) as they tend to act the fastest with closing accounts once they see your balances going up by other credit card issuers.

Once the balance transfer is complete, at that point even if your credit card gets closed you will still have the same 0% APR terms.

If you have any questions about balance transfers then please leave a comment and I will make sure to respond. Thanks!

Was this article helpful?

Sam Sam has nearly a decade's worth of experience educating his many readers on everything credit. Sam spends his days checking out credit cards for a full report, from the minute benefit details to the shebang of welcome bonuses. Plus studying the ins and outs of building proper credit. It’s his favorite pastime and he loves sharing it with others.

Leave A Comments

This site uses Akismet to reduce spam. Learn how your comment data is processed.

4 Comments

  1. Can I balance transfer from a business credit card to a personal credit card?

    • Yes.

      • Can you balance transfer from personal to business also?

        • Technically you can. But you need to double check the bank policy directly with the bank.

Trackbacks/Pingbacks

  1. 0% APR Plus No balance Transfer Fee Cards - What's Left? - Help Me Build Credit - […] blog, balance transfers are a great way to save on interest in a case where you are stuck with…
  2. Refinancing Credit Card Debt: What You Need To Know - Help Me Build Credit - […] up by many points. At that point, you can go ahead and apply for credit cards that offer 0%…
  3. Manage Your Business Cash Flow - 0% APR Credit Cards - Help Me Build Credit - […] You can read more about balance transfers here. […]
  4. Credit Card Grace Period: This Can Be An Expensive Mistake - Help Me Build Credit - […] same goes true for a card that has 0% APR only on balance transfers. Take note that if you…

Recent Posts

Follow us

Click here to subscribe to
our WhatsApp channel

Todays
best offers

Chase Ink Business Preferred

Earn 100,000 points after $15,000 spent within the first 3 months.

more info

British Airways Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

Chase Sapphire Preferred

Earn 80,000 points after $4,000 spent within the first 3 months.

more info

Iberia Visa Signature Card

Earn a total of 100,000 points after $20,000 spent within the first year.

more info

You May Also Like

How To Get Approved For A High Credit Card Limit

How To Get Approved For A High Credit Card Limit

Are you from the people that apply for a credit card and always just get approved for a silly $2,000 – $2,500 credit limit? That will not take you far. You want to be able to swipe like a king, especially when you want to apply for a 0% APR Credit Card and want to get...

read more
Refinancing Credit Card Debt: What You Need To Know

Refinancing Credit Card Debt: What You Need To Know

When someone is stuck with high credit card debt they are kind of trapped in a catch 20-20 situation. They are paying extremely high interest on the debt but at the same time, they can't get approved for any better loan terms as their credit is shot by those very same...

read more
Paying Credit Card Balances: Which Cards To Pay First

Paying Credit Card Balances: Which Cards To Pay First

Understand The Correct Order In Which To Pay Up Your Credit Card Balances As we discussed many times here on HelpMeBuildCredit.com, high credit utilization can affect your credit score by 100 points or more. If you would have the funds to pay your balances then that...

read more
Refinancing Your Home to Pay Off Credit Card Debt

Refinancing Your Home to Pay Off Credit Card Debt

Mortgage rates are now at a historic low, and a lot of people are rushing to refinance their homes to pay off other accumulated debt. In this post, I have invited a great and experienced mortgage broker  Shimon Klagsbrun from Funding Source (contact details at...

read more
Debt Settlement- Everything You Need To Know

Debt Settlement- Everything You Need To Know

    Debt Settlement     According to the Federal Reserve, the national credit card debt reached a record 104 trillion dollars in 2019! A recent survey conducted by a research group for creditcards.com found that more than 60 percent of Americans cannot...

read more
Is Bankruptcy An Option?

Is Bankruptcy An Option?

Filing bankruptcy is something that everyone wishes never to have to do in their lifetime. But, if someone, G-d forbid, is in a position where he needs to lift the knife off his/her neck, is bankruptcy at all an option? Is it as scary as it sounds? I invited my good...

read more
NYC Collection Laws

NYC Collection Laws

Debt collector agencies are the category for which the DCA receives the most complaints. Therefore, the DCA has beefed up the consumer protection laws against debt collectors. If a debt collector violates one of these laws they can be fined $1000 or more per incident....

read more
How to Get Cash from A 0% APR Balance Transfer Offer

How to Get Cash from A 0% APR Balance Transfer Offer

The purpose of a balance transfer is to transfer your balance from a credit card with a high APR to a credit card with a lower APR. There are a lot of credit cards that have 0% APR balance transfer offers for as many as 20 months. For savvy consumers, taking advantage...

read more

Download link sent
succesfully

Got it *please check your promotional inbox

Error sending download link

Try Again