How to Apply for Balance Transfer Credit Cards
Is it getting difficult for you to make your monthly credit card payments?
Shopping around for balance transfer credit cards is a good idea if you’re tired of paying excessive interest on your bill each month. Bad things, like amassing a lot of credit card debt, can be avoided if you do this.
A balance transfer can help you better manage your credit card bills. Need to know how to apply for Balance Transfer Credit Cards? Use this guide as a jumping-off point.
What is a balance transfer credit card?
You can save money on high-interest debt that you already have by moving your balance to a card with a lower interest rate or a card offering 0% interest on balance transfers. This is done through a balance transfer.
Moving debt from one credit card to another may require you to pay a balance transfer charge. This cost is generally between 3% and 5% of the amount that is being transferred.
Because of this cost, your overall debt will increase; therefore, you should perform the math before determining whether or not to transfer your debt to another card.
If the amount you would pay in balance transfer fees is more considerable than the amount you will save on interest by completing the transfer, then it is likely not a sensible financial move for you to make.
Who is the balance transfer credit card for?
The Federal Reserve says that about half of all credit card users carry a balance from one month to the next.
If you’re in this group and your current card has a high-interest rate, a credit card balance transfer with an introductory 0% APR offer can help you deal with some critical financial issues and save on interest.
People who should think about getting a card that lets them transfer their balance are:
- Someone who wants to reduce debt
- Someone who is a quick payer
- Someone who wants to consolidate balances
How to choose the best card for you?
You can choose from many kinds of credit cards; some come with more rewards and perks than others. One type, called a “balance transfer credit card,” can even help you pay down other credit card balances.
The best thing to do is get a loan with 0% APR for a limited time, then pay as much debt as possible quickly. Balance transfer cards can have different introductory periods, APRs, and extra perks (or none at all), so you’ll want to compare your options before you apply.
If you want to know how to select a credit card with a balance transfer, here are the most important things to think about:
- Understand how balance transfers work
- Check your credit score
- Compare card offer details
- Choose a card with rewards and perks
- Know how much debt you have and consider alternatives
Best Balance Transfer Credit Cards: Our top 3 picks
Citi Double Cash Card
The Citi® Double Cash Card’s substantial and straightforward cash-back incentives on every transaction come in the form of 2% cash back, which is broken down as follows: 1% cash back when purchases are made and another 1% cash back when purchases are paid off.
Citi Rewards+ Card
The Citi Rewards+® Card could be a sound balance transfer card to keep after the intro APR term. The card gets 2 ThankYou Points per dollar at supermarkets for the first $6,000 spent annually and 1 ThankYou Point per dollar on other purchases.
Earn 5 ThankYou Points per dollar on restaurants for the first 12 months following account opening, then 1 point. The card will round up every purchase to the nearest 10 points, giving you extra benefits.
Chase Slate Edge
The Chase Slate Edge has some unique benefits for a balance transfer card, like the chance to get an automatic one-time review for a higher credit limit after spending $500 and making payments on time in the first six months and the opportunity to get up to a 2% APR reduction each year after spending $1,000 and making payments on time.
But if you want as much time as possible to pay off your debt, you can get other cards with longer 0% APR periods.
How to Apply for Balance Transfer Credit Cards
The application process for balance credit cards in the US differs depending on the bank, but here’s a broad outline to get you started.
Get a New Credit Card
First, you must apply for a credit card with a different financial institution and be approved. If other companies issue sending and receiving cards, you can send money between them. Verify that transferring balances is an option with your new card.
Apply for a Balance Transfer Credit Card
For some institutions, you can submit a credit card application and a balance transfer request simultaneously.
Still, before filing for a balance transfer, some banks demand that cardholders wait a certain number of billing cycles.
Credit card balance transfers can be requested using a new provider’s toll-free number or online once approved for the bank’s balance transfer program.
Credit Card Requirements for Making a Balance Transfer
You may need to provide the following items with your balance transfer application, either electronically (through email or online banking) or in person (at a physical bank branch):
- Submission of a request for a balance transfer form
- Identification documents that are in good standing
- Recent credit card statement from another bank
Wait For the Balance Transfer Approval
Your balance transfer application will be verified and evaluated. While you wait for the bank’s verdict, keep paying the minimum balance on your other credit cards.
If you are authorized, your new credit card provider will pay off the outstanding balances on your other cards to your old bank. Once the payment has been shown in your former provider’s billing statement, work with your bank to terminate your credit card accounts.
The balance is transferred to your new credit card account and is deducted from your credit limit. After that, you can begin making debt transfer payments to your new credit card company.
Conclusion
Knowing how to apply for Balance Transfer credit cards might help you keep your finances under control. You will never have to worry about credit card debt again if you choose the best balance transfer credit card available and utilize it sensibly.