Credit cards are great tools for building your credit score. But if you find yourself carrying a high balance on your credit card, there may be a better way to pay off those bills than paying interest on top of interest. You could consider transferring some of your debt onto a new card with a lower APR.
A balance transfer is when you move all or part of your existing debt onto a new credit card. This allows you to use the new card to pay off your old one. It also gives you time to pay down your debt before interest starts accruing again.
What is a Credit Card Balance Transfer?
A credit card balance transfer is a method of transferring the amount owed on a credit card to a different credit card. You pay off the old card first, then make payments towards the new card. When you have paid off the entire balance on the old card, you will receive a statement showing the amount transferred to the new card.
How Do I Do A Credit Card Balance Transfer?
You need to contact your bank and ask them if they offer a balance transfer service. If they do not, you may want to consider switching banks. Once you find out what services your current bank offers, you should call them and inquire about their fees and interest rates. After you get the information, you should go online and look at the websites of several different banks. Compare the fees and interest rates offered by each bank. Make sure you choose a bank that offers the best deal for you.
How Long Does It Take To Get My Money Transferred?
The time it takes to complete a balance transfer varies depending on how much money you are moving. Typically, it takes between 2-4 weeks to complete a balance transfer. However, some people report receiving their money back in less than two weeks.
Is There Any Fee Associated With Doing A Balance Transfer?
Yes, there is a fee associated with doing a balance transfer. The fee is generally around $10-$20 per month.
Can I Use A Balance Transfer As An Emergency Fund?
No, you cannot use a balance transfer as an emergency fund. You should only use a balance transfer to help you pay down debt.
Will I Be Able To Pay Off My Old Card Before My New One Arrives?
If you are planning on paying off your old card before your new one arrives, you will need to set up automatic payments. Automatic payments allow you to automatically pay off your old card without having to think about it.
Should I Wait Until My Old Card Has Been Paid In Full Before Making Payments On My New Card?
It is recommended that you wait until your old card has been paid in full before making any payments on your new card. This way, you will avoid incurring additional fees.