How long does a balance transfer take?

A balance transfer lets you move your credit card balance to another card. In essence, you borrow money using your new card to pay off the existing balance on your old one. Providing the interest rate is lower on the new card, transferring your balance in this way can help you save money. If you have debts on more than one credit card, it can also let you put all your debt onto one card, which can make paying it off more straightforward. 

How long does it take for a balance transfer to go through?

The transfer speed depends on whether you’re moving the balance to an existing balance transfer card or a new one. Transferring to an existing card usually takes just one working day, although it could take two if you transfer it after business hours.

If you apply for a new balance transfer credit card, you usually need to wait until your account is up and running to make the transfer. This could take five to ten working days. You may be able to ask for a balance transfer as part of your application. In this case, the money could pay off your existing card within a few days.

Your card often comes with an app that you can use to transfer the balance, while others let you do it online. Some credit card providers allow you to request a transfer over the phone if you prefer.

When should you do a balance transfer?

A balance transfer could be worth doing because it can save you money if you’re paying interest on your credit card. This happens when you don’t settle your bill in full each month - either because you can’t or because you’ve made a big purchase that you’re paying off gradually. 

However, you should only do a balance transfer if you can transfer it to a card with a lower interest rate. There’s usually a transfer fee that’s a percentage of the amount you’re transferring, so be sure to factor this in to make sure you’ll save overall. You can also find balance transfer cards with no fee.

There are plenty of 0% interest balance transfer deals available to new customers. As long as you make the minimum payment each month, you could get more than two years of interest-free credit. However, you need to make sure you pay the balance off in full by the end of the deal period, or you will end up paying interest at a relatively high rate.

Alternatively, you may be able to transfer a balance to an existing credit card if you have one.

However, you can only transfer a balance to a different card provider, not to another card with the same provider.

What to do if your balance transfer is delayed

You should keep paying off the card with your existing balance until the transfer is complete. Otherwise, you could end up paying extra interest and a late payment fee that could damage your credit score.

If the balance transfer is taking longer than you expected, contact your credit card provider to find out why. 

How can you track progress?

Some providers let you track your application for a new balance transfer card via their website. You may also be able to phone for an update.

Read more…

• Compare balance transfer credit cards

• Common balance transfer mistakes – and how to avoid them

• Pros and cons of balance transfer cards