American Express (Amex) is an American multinational corporation specializing in payment card services. Its headquarters are at 200 Vesey Street in Battery Park City, neighboring Lower Manhattan in New York City. The company started its operations in 1850 and is among the 30 components of the Dow Jones Industrial Average. There are many transaction activities you can do with the card. However, today I will focus on how to do an American Express credit card balance transfer.
Balance transfers are crucial since they allow you to make your credit card debt payment easy. You locate another card somewhere with better rates than the current one and decide that you want to use it. Such action is recommended since it helps you save a substantial amount of money. Most balance transfer cards offer zero interest rates on balance transfers. You must pay your debts within the given period.
When you transfer your balance to the new card, you should avoid borrowing with the new card until you complete your repayment. That way, you will ensure that you repay the card’s debt as first as possible. A beneficial balance transfer is paying on time to benefit from the process. Above all, the transfer does not affect your overall credit scores. Clearing the loan will ensure that your scores grow quickly.
What is a balance transfer?
A balance transfer is a term associated with credit cards. I have touched a bit about the process, but you need to understand the process in detail. Balance transfer refers to moving your debt from one card to the other. The other card usually has lower interest rates than the current one and maybe other benefits such as rewards (cashbacks, miles, or points), low fees such as annual, monthly, foreign transactions, etc.
You should request that the balance transfer card issuer transfer your balance to the new card. However, you must first apply for the card, then allow your issuer to transfer the balance in collaboration with the current issuer. Usually, the new card issuer has to repay your existing balance and apply it to your new card, but under a low-interest rate.
As mentioned above, balance transfer credit cards offer 0% APR on your debt. That means you repay without any debt and thus save money. The duration of the 0% APR can range from several months to around two years, depending on the terms and conditions of the new card issuer. Once the duration is over, you start paying your debt according to the usual rates.
What to consider when choosing the best balance transfer card
To remain on the right track, there are various things you should have in mind. They include the following.
i) FICO scores
Credit cards require specific FICO scores. For example, the American Express credit score requirement is usually high. You should have at least 700 credit scores to get a card. Therefore, knowing your current scores help you to get the right card instead of using guesswork.
ii) Get the balance transfer that matches your needs
It is vital to get a card with a flexible patent schedule. Depending on your debt amount, you should know the amount you are comfortable repaying without straining yourself financially. Yes, you are repaying your debt at a 0% introductory APR. But how long should you repay your balance? That is very important. The higher your debt, the longer your repayment period should be.
iii) Make sure you accept low fees if necessary
Sometimes you may not get the 0% introductory APR. Make sure you get the one with the lowest APR possible if it happens. That way, you will not part with lots of money. Also, if you get a card with zero balance transfer fees, the better. Google should help you since you need to search for the card you need right from your browser.
iv) If you transfer, repay the debt on time
The aim of transferring your balance is to save as much as possible. Therefore, you should make all your payments on time to avoid any late payment fees. Some card issuers can suspend your 0% introductory APR early if you do not pay your dues appropriately. That may drag you back to the same situation you were in before transferring your balance. Keep in mind that early repayment usually keeps your interest rates up.
v) Read the fine print
A lot of people make the mistake of skipping the portion due to laziness. The portion is significant because there are terms and conditions that you should check. There could be transfer limits so that you cannot move all your balance to your new card. If you do not see that, you may be disappointed later on.
You also need to know when the introductory APR lasts. Some go for only a few months, and time may catch up with you when you still have large debts. Above all, do not forget to check if there are any penalties. There could be late payment penalties that you should know about to stay alert.
vi) Avoid using the two cards simultaneously
When repaying your debt, you have the old card and the new card, and the old one still functions as you repay the transferred balance. You should ensure that you do not use the two cards at once. Use the new card, and if you still like the old card, you can use it once you finish repaying the transferred balance. Moreover, canceling either card will not help you with your credit building, and thus you can spend a little with each card.
vii) Do not apply for many balances transfer credit cards
Do not do a trial-and-error method to see who allows your request first. That way, you will lower your credit scores very much since every financial company you apply for a card from makes a hard inquiry, thus affecting your scores negatively. Even though we have financial companies that offer instant credit card approval for bad credit and no deposit, you still need to be worried about low scores. Such cards usually have high-interest rates, and you will not like them. After all, bad credit cards have a low borrowing limit.
How to do American Express credit card balance transfer?
Suppose you want to use American Express for your balance transfer. In that case, you are in the right place since you will get the necessary information. There are two ways you can transfer your balance when using American Express. They include online and on the phone. Let us look at each of the transfer methods and how it happens.
1) Online transfer
You can transfer your balance online in the following manner.
- Log in to your online account on americanexpress.com.
- Tap on “account services.”
- Hit on “payment and credit options.”
- Navigate to “transfer balances.”
- Check your limit below the offer.
- Choose the American Express balance transfer offer approved for.
- Enter the amount to transfer and then the old card’s credit card number.
- Hit “next” to review and accept the terms and conditions.
- Confirm the transfer and submit your balance transfer request.
It is that easy, and thus you do not need to struggle a lot.
2) Transfer by phone
Another easy way to move your balance at American Express is using the calling option. You should call the American Express customer service number on your credit card printed on the back to speak with a representative. You go straight to the point that you want to do a balance transfer.
The next thing you should do is provide the card number of your old card with the existing balance and the amount you wish to transfer. They will then help you to complete the process.
Do secured credit cards allow balance transfer?
It is possible to transfer your balance to a secured credit card. You might be looking for a secured credit card for rebuilding credit in a case where you have a bad credit card. Choosing a secured card with 0% introductory APR and low interest will help you greatly.
You might be wondering what a secured credit card is. For your understanding, a secured credit card is the one that requires a security deposit in your account before getting it. It is usually suitable for rebuilding credit, especially starting from scratch. Your limit on a secured credit card depends on the deposit amount you make.
Unsecured credit cards are the opposite of secured ones. The cards do not require any security deposit as your credit scores speak louder. The better your scores, the better your APR and borrowing limits.
What are some of the best American Express credit cards for balance transfers?
The following are some of the AmEx credit cards you can use for your balance transfers.
- Blue Cash Everyday® Card with 0% intro APR
- American Express Cash Magnet® Card with 0% intro APR
- The Amex EveryDay® Credit Card with 0% intro APR
- Wells Fargo Propel American Express® card with 0% intro APR
American Express (Amex) is an American multinational corporation specializing in payment card services. Its headquarters are at 200 Vesey Street in Battery Park City, which neighbors Lower Manhattan in New York City. It is one of the largest service providers of payment cards and allows balance transfers on credit cards to enjoy better rates and repay your debt quickly. AmEx cards require high FICO scores.