You may have never done a balance transfer before. In this case, then you are likely to 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. As a result, the following, is our explanation of how to do a balance transfer, in the UK.
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. The balance transfer is often made to a new card with a 0% introductory offer on transfers.
You could for example, transfer from your existing Barclaycard credit card offer, with a high 21.9% APR, to a new balance transfer credit card with a 0% balance transfer offer for 29 months. This could save you a significant amount in interest payments.
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. Does your other card does have a current balance transfer offer? If not, then you will need to find a new card which does have a balance transfer deal.
It is very important that you only apply for the right credit card. This is because the UK 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 card company is the issuer for all of the over 60 UK 0% balance transfer credit cards, currently available online.
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. So as described above, choose a credit card from a different card issuer. If this new card meets your needs in terms of the promotional offers, and the application criteria, then 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 be 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 balance transfer. This could be a £2000 balance transfer amount, or a £6000 balance transfer, for example. Some credit card companies will also ask for the cardholder’s name, or the name of your existing credit card issuer.
Many card companies can now provide an instant decision on your acceptance for the new credit card. If you are accepted for the new card, then the balance transfer process will start immediately. This is subject to your credit limit, and the amount you have asked to transfer.
You can not transfer an amount greater then your credit limit. A credit card with a £2000 limit, will only allow a balance transfer of at most £1900, for example.
After your Balance Transfer Request
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. Your new credit card account will now show the value of the transferred amount. Your new card account will also show any balance transfer fee due.
If you do not make the balance transfer request during the application process you can still request a balance transfer at a later date. You can do this 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 transfers made within the first 60 days.
A balance transfer can take up to 10 working days to clear. However, most UK balance transfers are now completed within a couple of days.
That completes our explanation of how to do a balance transfer guide. More information can be found in our balance transfer questions and answers section.