How Long Does a Balance
Transfer Take?
A credit card balance transfer allows you to move credit card debt to another card account, and consumers typically do this to take advantage of a lower interest rate or a 0% promotional APR period. If you’re thinking of applying for one of these cards with the intent to transfer a balance, you may be wondering: how long does a balance transfer take?
Learn more about how balance transfers work, how they can impact your credit card debt and credit score, and how many business days the process takes. Once you understand the timeline and what’s involved, you can decide if it makes sense for you to apply for a balance transfer card.
What is a credit card balance transfer?
A credit card balance transfer is a type of debt consolidation where you move an existing credit card balance over to a different card. People generally initiate these transfers with new cards that have an introductory APR offer, so they can make progress paying off their debt without accumulating interest during the promotional period.
The best balance transfer credit cards provide a lengthy intro APR time frame of 12 months or more. This provides ample time to work toward debt payoff. Note that you may have to complete the balance transfer within 60 or 90 days of account opening to qualify for the promotional offer. Also, there is typically a balance transfer fee of 3% to 5% applied to the balance.
Whether or not you’re approved for a balance transfer request (and the balance transfer amount) depends on your credit history and credit limit.
One strategy to maximize a balance transfer offer is to add the balance transfer fee to your total balance, then divide by the number of months in the promotional period. This will give you the estimated monthly payment amount needed to pay off the balance.
For example: You have a $10,000 balance, and you move it to a new credit card with a 15-month 0% APR balance transfer offer and a 3% balance transfer fee. Your total balance transfer amount will be $10,300. If you pay roughly $687 each month for 15 months, you’ll pay off the debt without incurring any additional interest.
How long does a balance transfer take to complete?
A balance transfer can take anywhere from a few business days to several weeks to complete, depending on the credit card issuers involved. Before you submit a balance transfer request, see if the card issuer provides an expected timeline. If you don’t find one on their website or in the credit card offer, you can contact the issuer and ask for more information.
It’s important to know how long a balance transfer takes. Otherwise, you could end up missing your old credit card’s payment due date. For example, if you submit a balance transfer request right before your old card’s due date, your payment may not be applied in time, and you may incur late fees.
A balance transfer will not happen instantly. Two credit card companies are involved, and either company can impact the length of time your balance transfer takes. To start the transfer, the new credit card account has to process your request and initiate the payment. Next, the old card account has to receive and process the payment.
What to do if the transfer is taking too long
If you check your old account and notice that the balance transfer hasn’t gone through after a few business days, you can always contact the new card issuer for a status update. Again, this is important if your payment due date is in the next day or two, because you may need to play it safe and pay the minimum payment amount due.
Once the balance transfer completes, check your old account again after the next billing cycle begins, just in case there are any lingering interest charges to pay. If you owe even a few more dollars and you fail to realize it, you will need to pay late payment fees and your credit score will be negatively impacted.
Summary
Balance transfer credit cards are tools for managing credit card debt. They allow cardholders to pay off existing debt and often feature introductory 0% interest periods. As you explore credit card offers, you'll notice that balance transfer processes and timeframes may vary. Choose the best one for your needs, and stay mindful of your old card’s due dates until the transfer completes.
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