What Is a Balance Transfer and How Does It Work?
A balance move is when you take the money you owe on one credit card and put it on a different credit card. People do this to get a better deal or to pay less in interest. A lot of people use this when the new card has a lower interest rate or lets you pay no interest at all for a while.
You begin by asking the company with the new card to help you move the debt. If they agree, the money you owe on your old card gets paid off. Then you will owe that same amount to the new card.
Most companies that give credit cards will ask you to pay a fee when you move a balance from one card to another. This fee is often between 3% and 5% of the money you move. If you move $5,000 with a 3% fee, you will have to pay $150 right away. It is good to know these rules so you can make sure this choice fits with your plan to pay off debt.
Top Reasons People Use Balance Transfers
Many people do balance transfers to help with their money. People use them for these reasons:
- Reducing interest charges: Getting a 0% APR offer can help you save a lot of money.
- Consolidating debt: Putting credit card balances together makes it easier to pay back what you owe them.
- Avoiding late fees: Moving your balance to another card can help you not get charged late fees or a higher APR when you have many accounts.
- Speeding up payoff: A lower rate and less to pay at different times can help you get rid of your debt faster.
Balance transfers help the most when you pay off what you owe on time. Try not to get into new debt during this time. It is important to stick to your payment plan. That way, you can get out of debt faster.
How Long Balance Transfers Usually Take
The time you have to wait to finish a balance move is not always the same with each card company. Most people will see their move get done somewhere between 2 days and 6 weeks. How long it takes can change. It can depend on the way the card company works. It can also depend on how right your move request is and how you send it in.
It is important that you keep paying your old card until the balance move is done. If you do not, you may get late fees or have to pay a higher interest rate.
Average Timeline by Card Issuer
| Card Issuer | Average Processing Time |
|---|---|
| American Express | 5–7 days (up to 6 weeks in rare cases) |
| Bank of America | 2–14 days |
| Barclays | Up to 4 weeks |
| Capital One | 3–14 days |
| Chase | Up to 21 days |
| Discover | 4 days (14 days for new cards) |
| U.S. Bank | Up to 14 days |
| Wells Fargo | Up to 14 days |
Note: The time for this can be different for each person. Be sure to ask your issuer to know the exact details.
What Slows Down a Balance Transfer
Several things can slow down a balance move, like:
- Wrong information: Mistakes like putting in the wrong account number have to be fixed and checked. This can make the process take more time.
- Issuer rules: Some issuers use slow systems behind the scenes. Some may also ask for more checks.
- Busy times: If you send the money during big sale days or holidays, it may take longer than normal.
To lower the chance of having delays, be sure to check your application again. Stay in touch with your issuer and follow up often. This will help you get things done on time.
Factors That Change How Fast a Transfer Happens
Application Method
The way you begin a balance transfer can change how fast it is done.
- Online applications: These are one of the fastest ways to apply. You fill out a form on the web, and the computer handles it right away.
- Phone applications: You get help that fits what you need. But it can be slower than filling out your info online.
- Mail applications: This way takes the most time. Sending by mail and people having to read it makes the process much slower.
Choosing the right way can help match what you want with how long it takes things to get done.
Credit History and How Fast You Get Approved
Card companies look at your credit report when you ask for a new balance transfer card. If you have good credit, pay your bills on time, and keep your credit use low, you may get approved quickly. But if you have little credit or bad credit, they may look at your history even more. This can make your approval take longer.
When you look at your credit report before you apply, it can help you have a fast and easy move.
Ways to Track and Handle Your Transfer
It is good to keep an eye on your balance move. This helps you avoid any shocks or problems. A lot of card companies have online tools and customer help to watch your request. You can use many of these common ways:
- Online banking: Log into your online account to see what is happening with the money you sent.
- Notifications: Turn on email or text alerts so you get updates about what is happening.
- Customer help: Call for help if you do not see updates online.
- Documentation: Keep your confirmation emails or note the reference numbers so you have them if you need them in the future.
Watching things on time helps you spot and solve problems early.
When You Should Call the Card Company
If your balance move takes more time than it should, reach out to your card company. Have your reference number ready, the money you want to move, and when you asked for it. This will help you get help quicker. If the first person you talk to cannot fix it, ask to speak with a boss. You can also try email or safe chat to get in touch.
Talking to each other often can help stop more delays. It also helps everyone know what to do next.
Final Thoughts
Knowing how long it takes to move your balance and what things can change the time helps you make better choices about your money. Most of the time, it will take between 2 days and 6 weeks. Your credit history, the rules of the card company, and how you apply are all important. Keep an eye on your move often. If there is any problem, follow up to make sure everything is going well. If you do it yourself and keep watching it, you can pay less interest, make your debt easier to handle, and feel better about your money as time goes by.
Frequently Asked Questions
Can I use my new card before the Balance Transfer completes?
Yes, you can use your card to spend, but it will lower the amount you have left to use. It can also change any offers you get with your card. Make sure to check the rules for your card before you buy anything.
Is it possible to expedite a Balance Transfer?
Some companies can send your money fast, but you might have to pay more. Get in touch with your issuer to find out if they can do this for you. If they allow faster processing, they will tell you how much more it costs and what to expect.
Will a Balance Transfer affect my credit score?
When you move your balance, your credit score may go down for a short time. This is because your lender will look at your credit, and the amount you use will change. If you use credit the right way, your score can get better over time. Keep your balances low and always pay on time.
What should I do if my transfer takes longer than expected?
Get in touch with your card company. Give them all your confirmation details. If you need more help, you can ask to talk to a supervisor or try another way to contact them. Staying in touch often will help avoid further problems and move things faster.
Are there fees associated with Balance Transfers?
Yes, most companies will charge a fee if you move your balance. This fee is often between 3% and 5% of the total amount. It is good to read the terms before you begin the process. Knowing the fee ahead of time helps you decide if the transfer is worth it.
Updated by Albert Fang
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