What is a (VISA) Balance Transfer? A balance transfer allows you to move your credit card balances from other creditors to your American Eagle Visa account. The balance transfer option does not allow a member to transfer debt that is already with AEFCU.
Full Answer
Is a balance transfer good or bad?
On the other side, applying for new accounts can have a short-term negative effect on your credit score as each credit inquiry form an issuer will usually drop your score by a few points. In general, balance transfers are a good bet to improve your financial picture.
Should I consider a balance transfer?
You should consider how transferring the balance of your credit card debt will affect your finances in the long-term. If you will ultimately save money and pay off your credit card balance faster, then transferring the balance should be worth it.
How do I apply for a balance transfer?
How to do a balance transfer online
- Sign up for online banking after you receive your card.
- Log in to your online account and navigate to the balance transfer section.
- If necessary, choose a balance transfer option offered to you.
- Enter details of your balance transfer, including information about your other issuer and the amount you want to transfer.
Which credit card has the best balance transfer?
- Citi® Double Cash Card – 18 month BT offer. NerdWallet's ratings are determined by our editorial team. ...
- BankAmericard® credit card. NerdWallet's ratings are determined by our editorial team. ...
- U.S. Bank Visa® Platinum Card. NerdWallet's ratings are determined by our editorial team. ...
What is a credit card balance transfer?
Credit card balance transfers are typically used by consumers who want to move the amount they owe to a credit card with a significantly lower promotional interest rate and better benefits , such as a rewards program to earn cash back or points for everyday spending.
What does it mean to transfer a balance?
The challenge: Transferring a balance means carrying a monthly balance, and carrying a monthly balance (even one with a 0% interest rate) still involves making on-time payments of at least the minimum due on the transfer and for any new purchases. Otherwise you could end up losing the credit card’s introductory APR on your transferred balances ...
How long does it take to transfer credit card balance?
With accounts that involve a new credit card, the terms will require the cardholder to complete the balance transfer within a certain time (usually in the first two months) to receive the promotional rate. The day after that window closes, regular interest rates begin. Also, credit card companies do not allow existing customers to transfer balances to new accounts that they also issue.
Why do you transfer credit card balances?
Transferring a credit card balance should be a tool to escape debt faster and spend less money on interest without incurring charges or hurting your credit rating. After understanding the fine print of the terms, doing the math before applying, and creating a realistic repayment plan (one that pays off the balance transfer before making new purchases), taking advantage of a 0% introductory interest offer on a new card could be a shrewd move. So long as you do your research, you shouldn't have any trouble finding the right balance transfer card for you.
How long does it take to pay off a balance transfer?
At that rate, carrying that balance and paying $250 a month would require 24 months to pay off and cost $1,134 in interest. After securing a 12-month 0% balance transfer on a new credit card and moving the $5,000 balance, the cardholder gets a year to pay it off with no interest and just a fee to transfer the balance.
What is it called when one credit card pays off another?
Although it's called a balance transfer , one credit card actually pays off another. The mechanics include:
How long is the interest free balance transfer period?
Balance transfer credit card offers typically come with an interest-free introductory period of six to 18 months, though some are longer. Many credit transfers involve transfer fees and other conditions.
Why is balance transfer important?
A balance transfer can be a good idea to save money on interest charges.
How much does a balance transfer cost?
Balance transfers come with certain costs and limitations, though. Generally, you'll have to pay a balance transfer fee — usually 3% to 5% of the total transferred. And if your balance transfer card's limit is low, you might not be able to transfer your full balance.
What is a $0 balance transfer fee?
A $0 balance transfer fee (or a way to avoid paying such a fee). With such a card, you could potentially pay off your debt without spending a penny on interest and fees. Cards without transfer fees are rare nowadays, however, so you're likely to find only two out of three. Still, a card with no annual fee and a 0% introductory offer on balance ...
How long does it take to pay off a balance transfer?
Wait for the transfer to go through. Once the balance transfer is approved, which could take two weeks or longer , the issuer will generally pay off your old account directly. That old balance — plus the balance transfer fee — will show up in your new account. 4. Pay down the balance.
Is a balance transfer a good idea?
Key takeaways. A balance transfer can be a good idea to save money on interest charges. Balance transfers work by applying for a new card with a low introductory APR, initiating a balance transfer and paying down the balance. Some cards are good for balance transfers but others are not. A balance transfer is a type of credit card transaction in ...
Can you send a balance transfer through the mail?
Sometimes, balance transfers can also be initiated using convenience checks, or the checks issuers send you in the mail. Before using one, though, read the terms to find out if it will count as a balance transfer and what your interest rate will be.
Should I do a balance transfer?
If you can manage to pay off a balance in three months or sooner, or you can't qualify for a good 0% APR offer, paying off your debt as quickly as possible might be the best, most cost-effective option. And if you want a higher limit and don't mind paying some interest, a personal loan could be a good match; you can pre-qualify for one to see how much you could borrow and what interest rate you could get before accepting an offer.
What is balance transfer?
A balance transfer is a process that lets you move debt, or a “balance,” from a credit card or loan to another credit card. It could save you money and help you simplify your payments — but watch out for fees and other potential drawbacks. Louis DeNicola is a personal finance writer and has written for American Express and Discover.
How does a balance transfer work?
You may be able to complete the process in a few simple steps by requesting a balance transfer. Two common ways to do this are online or over the phone.
How long does it take for a credit card to transfer balance?
Depending on the method you use and how long it takes the two creditors to process the payments, the balance transfer could take several weeks to complete. You should keep making payments on time to all of your accounts during this period.
How much does a credit card charge for balance transfer?
Credit cards may charge a balance transfer fee, often 3% to 5% of the amount you transfer (with a minimum of a few dollars). One way to help figure out if a balance transfer makes sense for you is to weigh how much you might save on interest versus the amount you’ll pay in fees with a balance transfer. Also, if you keep adding new purchases and ...
What is the interest rate on a balance transfer card?
Some balance transfer cards offer an introductory 0% interest rate on the transferred balance, giving you several months to make payments without being charged any interest at all on it.
What happens if you keep adding purchases and don't pay down the balance you transferred?
Also, if you keep adding new purchases and don’t focus on paying down the balance you transferred, you may find yourself deeper in debt.
Can you transfer debt to a lower interest rate?
You have debt with a high interest rate. A balance transfer may save you money by moving debt from a high-interest-rate account to a lower-interest-rate account.
How do balance transfer checks work?
The check may come with a promotional offer for a temporary low or 0% annual percentage rate, or APR , which is the interest rate you’ll pay for your debt.
What happens if you cash a balance transfer check?
Balance transfer checks also come with a few pitfalls. For one thing, if you cash the check but spend the money on something else, you’re just adding to your debt instead of reducing it. And if there’s no 0% offer, you could also start paying interest on the transferred balance as soon as the check posts to your account.
What to do if you don't use balance transfer?
One last thing: If you don’t use the balance transfer offer, make sure you shred the check so that no one else can cash it in your name.
Can you sign a balance transfer check if you don't read the fine print?
But don’t be too hasty to sign that balance transfer check. If you don’t read the fine print, you could end up paying more in fees and interest than you think .
Can you lose a balance transfer APR?
Remember, you can lose a promotional balance transfer APR if you pay late or go over your credit limit. Read more: How to handle different APRs on the same credit card.
Does a credit card affect balance transfer?
A credit card’s network doesn’t really affect its balance transfer capabilities. So we also recommend checking out the best overall balance transfer credit cards to ensure you find the ideal deal.
Is Wells Fargo Platinum a good balance transfer card?
Many of the other top transfer cards demand excellent credit. But Wells Fargo Platinum may not be the best balance transfer Visa for everyone. Some cards offer 0% intro rates for longer, which may suit people with a longer debt repayment timeline.
