How to Transfer Balance from One Credit Card to Another

A credit card allows you to borrow funds from your card issuer. Credit cards are payment cards that allow you to buy goods and services online. You can get a credit card from your bank or credit union. Credit cards resemble debit cards in nature, and you can easily confuse the two. Both have card numbers as well as the CVV and the card expiry dates. In today’s article, I will take you through how to transfer balance from one credit card to another.

Sometimes you may pick a credit card from a particular credit card issuer, only to realize that you made a mistake. Some credit card issuers usually charge high-interest Rates on their cards. Furthermore, you may find a credit card with a low credit limit in that you cannot fund most of your transactions, whereby you end up spending the entire limit on your card.

If you have a credit that does not meet your expectations, you can discard it and get a better one. Credit cards offer high credit limits and lower interest rates to help you save a lot of money. When you find a new credit card with better terms, you can arrange to transfer the balance in your old credit card to the new credit card of your choice.

How do credit cards work?

Credit cards operate almost the same as loans. The first step to using a credit card is applying for one online or at your bank’s physical branch. Once you get a credit card, you have to activate it online to start using it. If you apply for the card at a physical branch, the bank officers can activate it for you.   

You can use a credit card to purchase goods and services either online or at physical stores. When buying online, you can use the routing and account number of the receiving bank to transfer funds. Again, if you wonder to transfer money from a credit card to a debit card, you can use the routing and account number of the checking account that links to the credit card to carry out the transfer.

Credit cards also allow you to pay online by inputting the credit card’s card number, the card’s expiry dates, and the CVV in the spaces provided. You can also pay with the card at a physical store by swiping your card at the register.

It is essential to understand that credit card issuers give you a credit limit depending on your credit scores for an unsecured credit card or the deposit amount for a secured credit card. Once you deplete your credit limit, you cannot borrow again until you settle the current debt. Remember that, since credit card debt is like a loan, you have to pay the funds together with interest.

It is also essential to know that you can withdraw funds at an ATM using your credit card. The question is, can you transfer money from a credit card to a bank account? Well, a credit card allows you to move money from the card account to a bank account. That is called cash advance and usually comes with high fees.

How to apply for a credit card

how to transfer balance from one credit card to another

You can apply for a credit card using the internet online or at a physical store. When you apply for a credit card online, you save a lot of time that you could have wasted if you applied for such a credit card at a physical branch. You might need to line up to get various services at a branch if you find many people waiting for the same.

Before applying for a credit card, you should check your credit scores to see whether you qualify for one. If you have ever utilized a credit card before or taken a loan, you can be sure that you have some credit scores. Therefore, you can check your credit scores from the credit bureau websites at a fee or check from your previous card issuer for free.

Once you determine the number of credit scores you have, you can apply for a credit card that suits the credit scores. You can hover over various websites and see the credit cards that suit your case. The good thing is, you can get a credit card with any credit score since there are credit cards for bad credit.

After applying for the credit card, you can then activate it online or at a physical branch. You cannot use a credit card that is not active whatsoever.

What are the factors to consider when applying for a credit card?

We have various things that you should consider when applying for a credit card. They include the following.

i) Interest rate

Make sure you choose a credit card that has favorable interest rates. Some credit cards charge too much interest that may end up draining you financially.

ii) Credit limit

When applying for a credit card, you should check the credit limit for the card so that you can get the most suitable card that meets your goals. A low credit limit can be very inconvenient, especially if you need to borrow a lot.

iii) Fees

Be careful of the fees that the credit card charges. Some credit cards charge hefty fees such as balance transfer fees, annual fees, monthly fees, and late payment fees.

iv) Rewards

Some credit cards come with exciting rewards. You should check for cash backs, miles, and points. Rewards help you to save money on your subsequent purchases.

Can I get a credit card without credit scores?

It is not a must you have credit scores for you to get a credit card. Credit cards require one to deposit a certain amount of money in your account to get a credit card. They are called secured credit cards. The cards are mainly helpful to build your credit scores from scratch.

You can also opt for a secured credit card if you have bad credit scores. That way, you can build your credit scores with time. Secured credit cards attract low-interest rates on the amount that you borrow. Your credit limit relies on the amount of money you deposit as security. You may wonder where the funds you deposit as security go. Well, when you grow enough credit score to advance to unsecured credit cards, your deposit becomes available for use in your account.

How to transfer balance from one credit card to another

As I mentioned earlier, you can transfer your credit card balance from the current credit card to a more favorable credit card of your choice. Transferring a credit card balance to another credit card is called a balance transfer, and as I mentioned earlier, it is done if you want to abandon the current card to move to a better one.

People usually ask themselves, can I pay a credit card bill with another credit card? If you have had that question, then you have the answer. The new credit card that you transfer your balance to usually pays off the previous credit card debt. To transfer your balance from one card to the other, you have to first establish the card of your choice in another financial institution. After that, you can proceed to carry out the process.

When you transfer the balance to another card, you may have to pay a balance transfer fee. Some institutions may not charge you such a fee. You may also get a 0% introductory APR for several months before you start paying the required interest. Various factors can attract someone to carry out a balance transfer to another credit card. They include; Low-interest rates, higher credit limits, and rewards. That means you have to weigh the current credit card and the new card and ensure that you benefit appropriately.  

During balance transfer, the new card issuer pays all your debts on the old credit card and then transfers them to your new credit card, which you will repay at a lower interest rate than the old credit card.

The following is the process you can follow to transfer the balance from one credit card to another.

1) Apply for the card

If you meet the credit score requirement of the excellent credit card that you have seen from another credit card company, then you can proceed to apply for the card. It should be a credit card with a 0% introductory APR.

2) Initiate the transfer

The next step after applying for the card is to initiate the balance transfer. You need to provide the credit card details to the new card issuer for them to carry out the transfer. You need to provide details such as the card issuer’s name, the amount of debt owed, and the account information.

3) Wait for the transfer

Once the transfer is initiated, it can take weeks to succeed. You should wait until the transfer is completed to start paying your debt.

4) Pay your credit card debt

Once the transfer is complete, you can then start paying off your debt. You should be quick to take advantage of the 0% introductory APR to complete your payment. By the end of it all, you will have saved a considerable amount of money, and you can borrow from the new card issuer.

Bottom line

A credit card allows you to borrow money from your card issuer. With a credit card, you can buy goods and services online, transfer money to a bank account, withdraw funds at an ATM, among many transaction activities. When applying for a credit card, you should check the credit card limit, the interest rate, rewards that the card offers, and the various fees that the credit card issuer charges.