With that in mind, moving debt to different cards can help keep your credit menu pastime payments at manageable levels, help you focus your funds on paying off your credit cards, and build healthy credit habits that can help increase your accredit score. here are the steps to take into report when you transfer your credit card balances : Know your existing credit tease ‘s interest rates, balances, and libra remove limits Weigh your available offers against your existing cards ‘ offers Select the circuit board with the best balance transfer put up available to you Transfer your balances to the poster with the best extend or your raw card Pay down your credit rating card debt
1. Know your existing credit card’s interest rates, balances, and balance transfer limits
Start the process by listing out your current credit cards, writing down each of these elements to understand the broad picture of your debt .
Interest rates (APRs)
Each recognition batting order you have will apply an APR assigned for your purchases, which can be found on your credit wag ‘s affirmation. While the national average for credit menu APRs is about 18 %, yours may range between 7 % and 30 %. Look to see if any of your cards charge a different APR for libra transfers and if you have a balance transfer offers available on your existing cards .
Write down how much you presently owe on each credit menu .
Balance transfer limits
recognition cards will have a limit on the total you can transfer to the debt from another credit rating calling card. Document the balance transfer limit of each calling card by looking at the poster ‘s statement. With a document listing each of your credit card ‘s terms as above, you ‘ll be prepared to move on to the following step for transferring your balances.
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2. Weigh your available offers against your existing cards
bridle to see if you have any pre–approved offers for a balance wheel transfer recognition card, then compare those offers by checking on-line or with your current card issuers to see what other accredit cards may have counterweight transfer options. Consider any promotion rates ( and how farseeing those rates will final ), the limits of your libra transmit, any fees assessed for each balance transfer you make, and the APR that will apply after the promotional rate expires .
3. Select the best balance transfer card available to you
now you should have a list of your terms for both your existing accredit cards and any early counterweight transfer offers. This will help you to select the best remainder transfer offer available to you .
Selecting one of your existing cards for a balance transfer
If one of your current citation cards offers you better libra transfer terms than any of your preapproved balance wheel transmit cards offer, it may be easiest to transfer your balance within your existing citation wag portfolio rather of opening up a newly tease. This can help you move your debt to the credit card with the lowest interest pace, which can help you save money on sake payments .
Selecting a new balance transfer credit card
If none of your existing credit cards can match the balance transportation APRs and duration from your pre–approved offers, then opening up a new libra transfer credit card may make sense. Most poise transfer offers will include introductory low APR for balance transfers for a located period of time. No interest will accrue on the libra transfer measure during that basic window. These can be very appealing offers, particularly when you are planning to aggressively pay back that transferred debt during that basic window. Be mindful, however, of what the APR will be when the introductory window expires : these APRs may be much higher than your current APRs, so you will want to be certain that you have reduced the debt enough so that your concern charges do n’t increase after the basic period closes. Citi offers an array of credit cards that feature remainder transfer offers, including Citi Simplicity® Card, Citi® Double Cash Card, Citi Rewards+® Card and Citi® Diamond Preferred® Card, and you can learn more about our balance transplant credit card options here .
Be aware of balance transfer fees
While lower interest rates can help you save money by reducing interest payments, be mindful that many balance transmit offers charge a fee for each counterweight you transfer .
4. Transfer your balances
The actual work of transferring your counterweight is bare : the card you are transferring the proportion to will collect all information about the balances you are moving and will process the transaction on their end. You can typically complete this process on-line or through your citation calling card ‘s app .
5. Pay down your credit card debt
One key condition of a balance transfer is that they will expect on-time payments as schedule. Missing one payment could mean that any basic or promotional APR can be taken away : putting you back at square one with a high interest rate.
While reducing your matter to payments may be your independent balance wheel transmit goal, you should besides be looking to managing your debt more efficiently going advancing. To ensure you pay down your debt, use what you are saving in interest payments to pay even more than the minimal monthly payments. Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or fiscal advice and is not a alternate for master advice. It does not indicate the handiness of any Citi product or military service. For advice about your specific circumstances, you should consult a stipulate professional .