A balance transfer fee is the amount you’ll be charged to move your debt from one card to another. Typically it’s 3% or 5% of the amount being transferred. Before applying for a balance transfer card it’s important to consider any fees you may have to pay as this will add onto your existing debt. Do the math to make sure you’ll actually end up saving money by doing a balance transfer.
How long does a balance transfer take?
It typically takes anywhere from two to seven days for your transfer request to be completed, but it depends on the issuer of the card you’re seeking to transfer a balance to.
For example, American Express says it typically takes from five to seven days for a transfer from another bank to be completed but it could take as long as six weeks. Citibank says on its site it can take from two to 21 days and Chase says most transfers are complete within two weeks.
The exact time for your transfer will likely depend on both the bank you’re transferring the debt to and the bank you’re transferring the debt from.
How to Do a Balance Transfer
First, choose the card you want to transfer a balance to. If you’re applying for a new balance transfer card online, you’ll have the option to choose to transfer a balance to the new card during the application process. Otherwise, you can speak to an agent at the issuing bank for your new card to make the transfer.
Be sure to read the card’s fine print and understand the terms and conditions of the card you’re transferring a balance to. Things to look for include:
- Is there a balance transfer fee?
- How long are the terms of any introductory low or zero-APR offer?
- What’s the card’s ongoing interest rate after the intro period expires?
Be aware that you won’t actually find out how much of a credit limit you’ll have on the new card until after you apply. This is important because you may not get approved for a line of credit as large as the amount you’re looking to transfer.
How to Do a 0% Balance Transfer
A 0% balance transfer works the same way as any other balance transfer. After you choose the card with an introductory 0% APR balance transfer offer, you can opt to make the transfer during the application process, or reach out to someone at the issuing bank to shift a balance to the new card.