![]() ![]() Banks generally charge fees for balance transfers: 3-5% of the transferred balance is typical. The fee charged for the transfer does not cancel out your interest savings.When your introductory interest rate applies, you should aim to pay down your debt as much as possible so you can avoid the interest charges that will be applied when the introductory period ends. While balance transfer cards often have extremely low introductory rates, these rates usually expire after a certain amount of time (typically from 6 to 18 months). You can pay off the transferred balance before a new balance transfer card's interest rate goes up. ![]() Aim to find a balance transfer credit card with a very low or zero intro rate, such as these balance transfer cards from Citi. Balance transfers only make sense if you can reduce your interest rate (also known as annual percentage rate, or APR). The balance transfer card has a lower intro rate than your existing card or loan.When do balance transfers make sense?Ī balance transfer can save you money on interest if: You can sometimes find a balance transfer offer with no balance transfer fee. Most balance transfers will charge a fee for the transfer, which is either a set rate or a percentage of the amount you transfer. In some cases, banks or card issuers will provide you with a balance transfer check so you can pay off your balance directly. Once approved, the card issuer will add the requested balance transfer amount to your card's balance and will pay off the debt on the other cards. Typically, to make a balance transfer, you will contact the card issuer taking on the debt and provide them with account details and the amounts you would like to transfer from other cards. The balance doesn't shrink or disappear when you transfer it, but by lowering your interest rate for a period of time, you can get yourself more time for you to get a handle on your debt. Transferring a balance from a credit card or loan to another credit card may save you money in interest charges over the life of the original debt. Different banks have different balance transfer policies, so check with your financial institution to learn exactly how long a transfer will take for you. A credit card balance transfer can take as long as 3 weeks-or as little as a few days. ![]()
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