By law, promotional financing offers must last a minimum of six months. A balance transfer is when you pay off the balances on existing credit cards or loans by transferring them to another credit card account. You can't pay off one credit card with another credit card, but you can move a balance to another credit card with a balance transfer. It can also make sense to transfer a balance to a card without a 0% APR promotional financing offer, so long as it has a significantly lower interest rate, and there’s no balance transfer fee. © Provided by Money.com Show full articles without "Continue Reading" button for {0} hours. For example, say that you have a 2000 dollars debt on a card with 12% APR. Not only will you avoid paying a lot of money in interest charges, all of your monthly payments will go towards the principal, allowing you to pay off your balance sooner. Once you are approved for the new account, you will have an additional loan on your credit history. The Citi Double Cash card also offers up to 2% cash back on all purchases, with no limits. Just note that you cannot transfer a balance between two accounts held by the same card issuer. You earn 1% cash back at the time of purchase, and another 1% cash back when you pay for your purchases, for a total of up to 2% cash back. Plus, there’s no annual fee for this card. A balance transfer credit card can help you get out from under a mound of debt that comes with a high interest-rate on your current credit card. When using credit cards, one of the concerns you should always have is how your actions will affect your credit history and your credit score. For example, does it have an annual fee, can you earn rewards and does it offer any kind of bonus for new applicants. © Copyright 2020 Ad Practitioners, LLC. Guaynabo PR 00968. Credit Repair companies can help you repair and improve your credit so you can apply for the credit card of your choice. Some credit card issuers offer special promotional interest rates on balance transfer to entice new customers. But if the cardholder was willing and able to pay off that balance within a few months, than the balance transfer fee could be greater than the amount of interest saved. This transfer has the potential to save the cardholder hundreds of dollars in interest charges over that time, even when you consider a 3% or even a 5% balance transfer fee. The official balance transfer definition is moving debt from one credit card to another. This process doesn’t remove your debt. What is a Balance Transfer? Many credit card issuers offer new applicants the chance to transfer a balance and pay 0% APR, or a reduced APR, on the transferred amount for a limited time. The longer the offer extends, the more valuable it is. Not only will you avoid paying a lot of money in interest charges, all of your monthly payments will go towards the principal, allowing you to pay off your balance sooner. That helps you By law, promotional financing offers must last a minimum of six months. These fees are imposed by nearly all card issuers offering 0% APR promotional transfers, and are usually either 3% or 5% of the amount transferred. Moving outstanding debt on one credit card to another card—usually a new one—is a balance transfer. When you apply for any new credit card, including a balance transfer card, you are making an inquiry into your credit. How to choose the best balance transfer card. A balance transfer lets you transfer the balance from one credit card or store card, where you may be paying interest, to another credit card.. Once the new balance appears on the account you transferred it to, it will be subject to the account’s interest rate for balance transfers. Nearly all cards with 0% APR balance transfer offers will have a fee of either 3% or 5%, but on rare occasions there have been cards with no fees for transfers completed shortly after you open an account. 2  For more information, read Money’s full disclaimer. There’s no annual fee for this card, no penalty interest rate and your first late payment fee is automatically waived. The Citi Double Cash card also offers up to 2% cash back on all purchases, with no limits. Effectively, a card issuer pays off the balance from another issuer’s account, which then becomes a debt with the issuer’s own account. Balance transfers are a good way of paying off debt if you choose a low interest rate with enough time to pay it, however many people fall into the trap of continually transferring their debts to different cards, incurring unnecessary fees and affecting their credit rating. There are many credit cards that offer 0% APR introductory financing for balance transfers. Because balance transfer credit cards provide lower introductory interest rates, they can help you pay off your other high-interest credit card debt faster by allowing you to save on interest charges. This card offers new applicants 14 months of 0% APR financing on both new purchases and balance transfers, with a 3% fee for transfers completed within two months of account opening. When using credit cards, one of the concerns you should always have is how your actions will affect your credit history and your credit score. Once the new balance appears on the account you transferred it to, it will be subject to the account’s interest rate for balance transfers. Opinions are our own, but compensation and in-depth research determine where and how companies may appear. A balance transfer is when you move money you owe from one credit card to another that charges less in interest. Citi Double Cash. 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