To do a balance transfer, the typical steps are:
- Get or apply for a credit card that offers a low or 0% introductory APR on balance transfers.
- Initiate the balance transfer through your new card issuer—this can usually be done online, via the card issuer’s app, or by calling customer service. You will need to provide details of the debt to transfer: the old creditor’s name, account number, and the amount.
- Wait for the transfer to be approved and completed, which can take a couple of weeks. The new card issuer pays off the old balance directly.
- After the transfer, pay down the balance on the new card, ideally during the introductory 0% APR period to save on interest.
Additional tips:
- Make sure to keep paying at least the minimum on your old card until the transfer is confirmed.
- Be aware of balance transfer fees (usually 3% to 5% of the transferred amount).
- Transferring between cards of the same issuer may not be allowed.
- Balance transfers can also include other types of debt, depending on the issuer.
This process allows you to move high-interest debt to a card with better terms to save money on interest and manage payments more easily.
