To conduct a credit card balance transfer, a consumer must first apply for a transfer before shifting his credit card balance from his old credit card company to his new one, according to U.S. News. Credit card balance transfers can be done online, and consumers should carry them out shortly after they're approved so that they can take advantage of their new cards' promotional offers.Continue Reading
One of the most common reasons for a credit card balance transfer is to pay a lower interest rate, notes U.S. News. Consumers can save themselves thousands of dollars by transferring their credit card balances, and their interest rates can be reduced even more if they are willing to perform multiple balance transfers.
There are fees for transferring a credit card balance, according to U.S. News. A cardholder should determine how much it costs to perform a credit card balance transfer compared to how much it costs in the long run if he remains with his current credit card company. If the balance is small, the cardholder is not likely to save money with a transfer. Consumers who have excessive debt may have to complete multiple balance transfers to unload the entirety of their credit card balances.Learn more about Credit & Lending