Question 1

What is a credit card balance transfer?

Accepted Answer

A balance transfer is a transaction in which you move debt from one account to another. For example, you may want to transfer debt that has a higher interest rate to a credit card with a lower interest rate.

Question 2

How do credit card balance transfers work?

Accepted Answer

The exact credit card balance transfer process may vary across credit card issuers. You may transfer a balance onto an existing credit card account or apply for a new credit card with a more favorable annual percentage rate (APR). If you qualify for a balance transfer card offer, you may move some or all your existing card balance to the lower-interest account. Keep in mind that the lower interest rate only lasts for a limited time after opening the account. To prevent an interest charge, try to repay your balance in full before the introductory period ends and the standard APR kicks in.

Question 3

How long does a balance transfer take?

Accepted Answer

The balance transfer process may take anywhere from a few days to a couple of weeks. Each card issuer may take a different amount of time to process a balance transfer. Your unique circumstances also influence the timeline.

Question 4

How long do Discover® balance transfer requests take to process?

Accepted Answer

Discover balance transfer requests vary based on what type of account you have. For new accounts: An account must be open for 14 days before Discover can begin processing your balance transfer request. After that, most transfers are processed within 4 days. Please allow additional time for the recipient to credit your other account. To avoid late fees or penalties, we recommend that you continue to make payments on your other account until you verify the funds have been credited. For existing accounts: Most transfers are processed within 4 days. Please allow additional time for the recipient to credit your other account. To avoid late fees or penalties, we recommend that you continue to make payments on your other account until you verify the funds have been credited. You may check the status of your transfer request by logging into your account.

Question 5

Is a credit card balance transfer right for you?

Accepted Answer

If you've been struggling with debt on a high-interest credit card account or juggling multiple credit card bills every month, a balance transfer card offer may help. The following questions may help you determine whether a balance transfer credit card offer is the solution you've been looking for.

Question 6

How much of your credit card balance can you transfer?

Accepted Answer

The maximum amount of credit card debt you may transfer depends on the new credit limit. Some card issuers may allow you to move up to the full credit limit, while others may cap balance transfers at a slightly lower amount. The credit card issuer on your new account may set your credit limit based on factors like your credit history, income, and existing debt. With a strong credit history, you may be able to transfer a higher balance. But if you have high balances or a low credit score, you may not be able to transfer as much debt as you'd like.

Question 7

What is a balance transfer fee?

Accepted Answer

Transferring your credit card balance typically comes with a cost. Most credit card issuers charge a balance transfer fee, which is usually a small percentage of the total amount you transfer or a flat fee. You may notice the fee as a separate charge on your credit card statement.

Question 8

How much can you save with a credit card balance transfer?

Accepted Answer

To determine whether a balance transfer is worthwhile, consider whether the lower interest rate may save you money in the long term. If you know the interest rate you're currently paying on a balance, you may calculate how much you would spend to pay off your balance in full during a set time frame. To find your potential savings, compare that cost with your balance transfer fee and potential interest charges on the new account. If you wouldn't save much money, or if the fee outweighs potential interest savings, a balance transfer may not be the best fit. Keep in mind that you may not save money if you can't repay your transferred balance before the new card's interest rate kicks in.

Question 9

Can you avoid interest on new purchases with a balance transfer?

Accepted Answer

Before you use your new credit card, make sure you understand the interest rate. Some credit cards may offer a low introductory APR on balance transfers, but not new purchases. Others may offer low interest rates on both types of transactions. Generally, it's a good idea to avoid using your credit card for new purchases soon after a balance transfer, if possible. Extra charges may make it more difficult to pay down your debt.

Question 10

Will a balance transfer hurt your credit score?

Accepted Answer

A balance transfer may affect your credit score in several ways. When you open any new credit card account, a hard credit inquiry appears on your credit report. Hard credit checks may temporarily lower your credit score. But the positive effects of a balance transfer may outweigh the credit score risk for some. As you make consistent monthly payments to reduce your balance, you should build a positive payment history, which has a significant influence on your credit score. And as your balance shrinks, your credit utilization ratio should go down, which may also help your credit.

Question 11

What can I do if my balance transfer was denied?

Accepted Answer

Per the Fair Credit Reporting Act, you're entitled to know if something on your credit report has prevented you from qualifying for credit cards or other offers. If you couldn't complete a balance transfer because your application for a credit card was declined, it may be a good idea to review your credit report from each major credit bureau. They're available for free each week at AnnualCreditReport.com. Then, you may practice good credit habits going forward, such as paying your bills on time, keeping balances low, and keeping new credit applications to a minimum. You may reapply after building a positive credit history and improving your credit score.

Question 12

How often can I make a credit card balance transfer?

Accepted Answer

Your ability to complete future balance transfers depends on your available credit and offers available, but don't count on being able to repeatedly roll over debt to another offer. High credit usage may affect your credit score and make it harder to qualify for additional credit cards, a higher credit limit, or a balance transfer. In addition, you may pay balance transfer fees for each transfer.

Question 13

How long will it take me to pay off the balance?

Accepted Answer

The time it takes to repay your balance depends on the balance you've transferred, the amount you pay each month, and how your credit issuer applies your payments to your purchase and balance transfer balances. Ideally, you should try to pay off your balance before the low introductory APR offer concludes. If you're only paying the minimum due each month, you may not be able to repay this balance before the introductory period expires, which may mean more debt.

Question 14

How do I request a Discover Card balance transfer?

Accepted Answer

To request a transfer on a Discover credit card, take the following steps. Log in to your Discover account and select "Card Services" and then "Balance Transfers" from the menu options. From there, you may see balance transfer offers you may have available on your account. Select the offer and complete your request by providing details about the balance you want to transfer. You may also call the phone number on the back of your card to check your available offers and complete a balance transfer request.

Question 15

Why is the "Credit Line Available" amount on my Discover balance transfer offer and balance transfer request pages different than what's in my Discover "Account Summary"?

Accepted Answer

The credit you have available in your Discover account for a balance transfer reflects your Credit Available minus any balance transfers pending on your account. Pending balance transfers include balance transfers that have been approved but not yet authorized or that haven't yet posted to your account. Once a balance transfer has posted as a debit to your Discover account, it'll be reflected in the Credit Available amount in your Account Summary.

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