Credit Card Balance Transfers 101

If you'd like to consolidate credit card balances or other types of loans, a balance transfer may be the solution you're looking for. Transferring multiple balances to a single credit card can simplify your monthly payments and potentially save you money on interest. This guide offers answers to the most common balance transfer questions.

A credit card balance transfer is where you move an existing credit card or loan balance to another credit card account. Usually, there is a fee to transfer a balance. Balance transfer offers on credit cards typically feature a low introductory or promotional interest rate for a limited time. Importantly, these introductory or promotional rates are temporary. If the balance is not paid in full by the time the introductory rate ends, the unpaid promotional balance will accrue interest charges at the standard APR on the account.

If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including any balance transfers) by the due date each month or you have a 0% APR on purchases.

Balance transfer fees vary from one credit card to another. Typically, the fee is a percentage of the transferred balance (such as 3% of the balance transferred) or a minimum fee, whichever is greater. Some credit cards have lower introductory or promotional balance transfer fees for a specific offer.

It depends on the offer. Promotional APRs must last for at least six months but some offers provide for a longer duration.

The amount of time it takes for a balance transfer to be completed depends on whether you're transferring a balance to a new or existing account and which credit card companies are involved. Generally, it can take anywhere from 2 to 21 days for a balance transfer to post to your account, although with some credit card companies, it may take even longer.

A balance transfer doesn’t need to be complicated, but you’ll need the right process to obtain one, and it may take some time. Here are the steps to taking one out:

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.

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