If you have never done a balance transfer before, you may well have questions relating to how to do a balance transfer.
Here at Balance Transfer Expert, we aim to explain all aspects of the balance transfer process as simply as we can, so here is our guide on how to do a balance transfer.
A balance transfer occurs when a credit card customer transfers the outstanding debt from one credit card to another credit card.
The most common type of balance transfer is when a customer make a balance transfer from a credit card with a high rate of interest such as 18.9% APR, to a new credit card offering an introductory rate on balance transfer such as 0% for 30 months.
How To Do A Balance Transfer – Step 1
Before you can make a balance transfer you need to have another credit card available to you. If you do not already have another credit card with a balance transfer offer, you will need to find a new credit card offering a balance transfer deal.
It is very important that you only apply for the right credit card because the credit card companies do not allow balance transfers between credit cards that are both issued by the same company. Discovering who the actual credit card company behind each and every different credit card can often be quite tricky.
At Balance Transfer Expert however, we have already worked out which credit card company is behind each and every one of the over 60 UK 0% balance transfer credit cards currently available.
Check the listing of the credit cards on our website. At the bottom of the card details, we show the credit cards that you cannot use to make a balance transfer to that particular card.
How To Do A Balance Transfer – Step 2
Many balance transfers are requested during the application process for a new credit card. Once you have found a credit card from a different card issuer, as described above, that meets your needs in terms of the promotional offers and the application criteria, you can apply online.
As part of the application process, you will be asked if you would like to make a balance transfer. You will asked to provide details about the credit card from which you wish to transfer the balance.
You will need to provide the 16 digit credit card number and the amount you wish to transfer, such as a £2000 balance transfer or a £6000 balance transfer for example . Some credit card companies will also ask for the cardholder’s name or the name of the credit card issuer.
Many credit card companies can now provide an instant decision on your acceptance for the new card. If you are accepted for the new card then the balance transfer process will start immediately, subject to your credit limit and the amount you have asked to transfer.
The new credit card company will then make a transfer of funds to your current credit card account. This will reduce the balance on your old credit card account and leave you with an outstanding balance on your new credit card.
If you do not make the balance transfer request during the application process you can still request a balance transfer online or over the telephone by providing the same information as described above. However be aware that may 0% balance transfer deals only apply to balance transfers made within the first 30 to 60 days.
A balance transfer can take up to 10 working days to clear, although most balance transfers are now completed within a couple of days.
That completes this how to do a balance transfer guide, but more information can be found in our balance transfer questions and answers.