ELI5: How do balance transfer credit cards work?

Your new credit card is used to pay off your old credit card. The amount transferred gets a 0% rate for a specific time period, but they do charge a transfer fee and new balances get charged …

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ELI5: How Do Balance Transfer Credit Cards Work?

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Your new credit card is used to pay off your old credit card. The amount transferred gets a 0% rate for a specific time period, but they do charge a transfer fee and new balances get charged …

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Eli5 What Is A Credit Card Balance Transfer And What Does It Do?

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Card B - has a $0 balance, with a 4% APR interest rate You can transfer all or part of the balance of Card A to Card B. In the above scenario, doing so would save you money each month on …

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ELI5: Credit Cards Balance Transfer In A Nutshell And How Do Banks ...

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My uncle had $50,000 on a balance transfer card at 0% APR. He was late on one payment and they jacked the rate up to like 24.99%. Like most credit cards if you are responsible and use …

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Can I Use A Balance Transfer Offer To Pay Off Someone Else's Credit ...

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Nov 24, 2016 · Have them apply for a 0% balance transfer offer in their own name. Transfer the balance back to them as soon as feasibly possible. I might even buy credit monitoring service …

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What Is A Balance Transfer And How Does It Work? - WalletHub

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Apr 17, 2024 · You generally need good or excellent credit to get a 0% balance transfer credit card, which makes a transfer most worthwhile. You can check your score for free on …

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ELI5: How Do Credit Card Balance Transfers Work?

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Example: Let’s say you have 1,000 in debt on a credit card with a 24% interest. You are offered a balance transfer for 3 months no interest at a 3% transfer fee and a cash advance fee of 27% …

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Balance Transfers: Benefits, Drawbacks And Alternatives

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Nov 2, 2023 · A good balance transfer offer can save you a bundle on interest charges. If you moved high-interest debt to a credit card with an introductory 0% APR period on balance …

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ELI5: How Do Balance Transfers Work? : R/explainlikeimfive - Reddit

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I transfer the balance. Original card shows a +$5,000 payment, other one shows a -$5000 charge. If it was different banks, technically the original bank would "loose out" on all my hefty interest …

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ELI5:Balance Transfer(Credit Card) : R/explainlikeimfive - Reddit

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You might get a better interest rate on one card. Also, many card providers offer a different rate on balance transfers for a period - often something like 0% for 6 months. You still owe the …

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FAQs about ELI5: How do balance transfer credit cards work? Coupon?

How does a credit card balance transfer work?

How do balance transfers work? A credit card balance transfer involves moving debt from one credit card to another. It’s a strategy that can help you save money and pay off debt faster — if you’re careful about details like fees, interest rates and restrictions on transfer amounts. ...

How much does a balance transfer credit card cost?

The "perfect" balance transfer credit card comes with three big zeroes: A 0% introductory APR offer for balance transfers. A $0 annual fee. A $0 balance transfer fee (or a way to avoid paying such a fee). With a "triple-zero" card, you could potentially pay off your debt without spending a penny on interest and fees. ...

How does a 0% balance transfer work?

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. The offers that appear in this table are from partnerships from which Investopedia receives compensation. ...

How do I choose a balance transfer credit card?

Since the ultimate purpose of a balance transfer is to save money, you want to choose a card that minimizes your costs as much as possible. The "perfect" balance transfer credit card comes with three big zeroes: A 0% introductory APR offer for balance transfers. A $0 annual fee. A $0 balance transfer fee (or a way to avoid paying such a fee). ...

What happens if a credit card balance is transferred?

When you transfer balances on credit cards, what happens is that the new credit card's issuer pays your original creditor for the amount transferred. Once the balance is transferred, you will owe your debt to the issuer of the balance transfer card. ...

What is a balance transfer card?

Unlike deferred-interest offers common on store cards, balance transfer cards don't hit you with a mountain of retroactive interest charges if you don't pay off the balance by the end of the promotional period. Instead, you would just owe interest on the remaining balance going forward. ...