Key Takeaways
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There are benefits to consolidating debt with balance transfers, including promotional APRs.
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Balance transfers won’t hurt or help your credit alone; you should still commit to best practices when paying off credit card debt.
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Balance transfers require an approval process, which means your balance transfer request can be denied if you have a high credit utilization.
A credit card balance transfer offer can make it easier to manage your debt, especially if you’re struggling with high interest rates on loans and credit cards. However, it’s important to understand the terms of a balance transfer credit card offer before you apply. That way, you can use your balance transfer card offers responsibly and minimize your interest.
Still wondering exactly how a balance transfer works and if it’s right for you? Consider the answers below to some commonly asked balance transfer questions.
What is a credit card balance transfer?
A balance transfer is a transaction where debt is moved from one account to another. For example, you may want to move debt that has a higher interest rate to a credit card with a lower interest rate to help you save money.
How do credit card balance transfers work?
The exact process for a credit card balance transfer can vary between credit card issuers.
You could take a balance transfer on your existing credit card or apply for a new credit card that has a low introductory APR on balance transfers. If approved, you would then transfer your credit card balance and wait for the debt to move to the new account.
Once the debt is on the new card, you should try to pay it down during the introductory period to avoid accruing interest.
How long does a balance transfer take?
A balance transfer 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.
How long do Discover balance transfer requests take to process?
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 can check the status of your transfer request by logging in.
Are there balance transfer fees?
Most credit card issuers charge a balance transfer fee, which is usually between 3% and 5% of the total amount transferred.
Is a credit card balance transfer right for you?
If you have a high-interest credit card racking up debt and want to move this amount to a lower-interest card, you might consider a balance transfer credit card offer. Likewise, balance transfer credit cards can help you consolidate your debt from multiple credit cards, so you only have to worry about one interest rate and credit card bill.
Balance transfers can be helpful tools for anyone able to pay off their transferred balance within the low-interest period before interest rates rise. If you feel you might not be able to pay off your balance within the promotional period, you should consider whether a balance transfer is the best way for you to manage your debt.
How much money should I transfer?
The credit card issuer determines the maximum amount you can transfer on a credit card that offers a balance transfer. You won’t be able to exceed the credit limit on your new card, and you should be careful not to transfer more than you can pay off during the introductory period after account opening.
Will I save money with a credit card balance transfer?
If you know the interest rate you’re currently paying on a balance, you can calculate how much it'll cost to pay it off. Compare that with the balance transfer fee and interest you would pay on your new card, and you can figure out your potential savings. If the amount is insignificant, it might not be worth going through the process of a balance transfer. 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.
Can I avoid interest on purchases if I transfer a balance?
You can avoid an interest charge on new purchases you make if you pay your entire balance in full each month. Many balance transfer credit card promotions only offer their low introductory APR for future balance transfers. Unless your balance transfer card has a 0% introductory purchase APR offer, new purchases are subject to interest. Please see your card issuer’s terms for details.
Will a balance transfer hurt my credit score?
A balance transfer itself may not necessarily hurt your credit score, but you should keep in mind the general rules of good credit as they apply to balance transfers.
Did you know?
Discover was the first major credit card to give you your FICO® Credit Score for free on your monthly statement and online.1
More common credit card balance transfer questions
Why is the Credit Line Available amount noted on my Discover balance transfer offer and balance transfer request pages sometimes different than what I see in my Discover Account Summary?
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.
What can I do if my balance transfer was denied?
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 at AnnualCreditReport.com on a weekly basis, according to the Federal Trade Commission (FTC).
Then, you can 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 might reapply after building a positive credit history and improving your credit score.
How often can I make a credit card balance transfer?
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 utilization could 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.
How long will it take me to pay off the balance?
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 might mean more debt.
How do I request a Discover Card balance transfer?
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 can 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 can also call the phone number on the back of your card to check your available offers and complete a balance transfer request.
