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What are balance transfers between credit cards

Knowing how financial products work can save you good money. This has become indispensable for the management of many daily aspects, especially the personal economy. If you don’t know the scope of the balance transfers between credit cards (balance transfer), here we tell you the essentials.

Knowing the balance transfer between credit cards

Transferring balance between credit cards is something anyone can understand. It involves moving one or more debt balances to plastic in order to save money in the process.

In general, this implies that the receiving card offers you better payment terms, such as a 0% interest rate for a time.

On the other hand, almost all credit cards give you the possibility to transfer what you owe to another similar account. There are also plastics that allow you to transfer balances to them if it seems more convenient.

Cash Rewards credit cardCash Rewards credit card

  • APR: 16.24%
  • Annual quota: $ 0
  • Credit limit: Consult

More infoRequestChase Freedom Credit CardChase Freedom Credit Card

  • APR: 14.99%
  • Annual quota: $ 0
  • Credit limit: Consult

More infoRequestWells Fargo Cash Wise VisaWells Fargo Cash Wise Visa

  • APR: 13.99%
  • Annual quota: $ 0
  • Credit limit: Consult

More infoRequestCiti Rewards + CardCiti Rewards + Card

  • APR: 15.49%
  • Annual quota: $ 0
  • Credit limit: Consult

More infoRequestTD Cash credit cardTD Cash credit card

  • APR: 15.24%
  • Annual quota: $ 0
  • Credit limit: Consult

More infoRequest

This operation seeks to take advantage of the promotional offers of many banks to obtain a new TOC.

There are certain credit cards that have more favorable conditions to make this kind of transfers. These stand out for including:

  • Lower commissions for incoming transfers.
  • A lower usual interest rate for balance transfers.
  • A specified time (up to 24 months) with a Lower introductory APR for these operations.

Commissions applied to balance transfer

As with other services, balance transfer between credit cards may have a position. Regardless of the interest rate you have, there is a cost associated with this process.

The normal commission for this operation varies from 2 to 5% of the mobilized amount with a minimum already established, which can be $ 5 or more.

In some cases and depending on the conditions of the contract, the bank could eliminate this commission if you meet a specific requirement. It usually involves moving the money within days of obtaining the new TOC.

It is important to note that the account statement will show you the collection of the commission and the transfer separately.

Types of balance transfers between credit cards

Another advantage of balance transfers between credit cards is that you can spend money that you owe from any account. This includes other plastics, personal loans, student loans, auto loans, and other options.

Both banks and issuers allow you to carry out this operation with instruments that have a monthly fee.

What you can’t do is transfer from one TDC to another of the same institution or related entities. For example, if you get a credit card from Citi, you can’t use it to pay for products sponsored by this bank.

This limitation is intended to prevent you from taking advantage of the system and damaging the profits of financial institutions.

How long does one take balance transfer

Unlike other operations, the transfer of balances takes longer than one would like. For major banks, it could take 2-3 weeks to complete.


With smaller entities and with fewer clients, the transaction is usually effective in a week or less. This information is important because you have a promotional time limit (1 or 2 months) to do it.

To give you an idea, we indicate the waiting period for weight issuers:

  • Amex. Between 5 and 7 business days.
  • US Bank. At least 14 days.
  • Chase
    . Usually less than 7 days. Although it may take up to 21.
  • Bank of America. Up to 5 days for old customers and 14 for new accounts.
  • Discover. Up to 7 days for existing accounts and 14 for new accounts.

Pros and cons of balance transfer

Transferring balance is a process that requires comparing specific conditions of each issuer and investigating how to do it right. As a guide, we leave you the advantages and disadvantages of its application:

  • 0% promotional APR. It may be available for 12, 18 or 24 months, but taking advantage of it has its requirements.
  • Better terms. Others may offer you better benefits than what you have, such as rewards for expenses, choosing a cut-off date, or not charging you for late payments.
  • Simplification of expenses. These types of credit cards are widely used to consolidate debts, which means that you could collect all or most of your accounts in one.
  • Possible higher APR. After the grace period, the fee may be more expensive. Something that you must be clear about.
  • Credit limit. You need a good score (650+) for these plastics, which affects how much money you will have in financing.
  • Invalidation of terms. If you pay late, exceed the limit, or bounce a check, the promotional rate can be waived.
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Hispanic entrepreneur with a degree in business administration and experience working in the United States. My passion for business and entrepreneurship led me to launch my own blog where I share information and resources to help other Hispanic entrepreneurs achieve success in their businesses.