How Long Does A Balance Transfer Take?

A balance transfer is when you move the balance from one credit card to another. To do a balance transfer, the cardholder must initiate the request. Typically, when you apply for a balance transfer card, the issuer will ask you if you’d like to shift any balances to the new card, and ask you to provide the number of the account you’d like to transfer from, along with the amount you’d like to transfer. Assuming you are approved for both the new card, and at the credit limit you’re seeking, the issuer of the new card will pay off the debt you had with the original credit card issuer. The new creditor then assumes whatever balance has been transferred.

Balance transfers often come with a fee. This is either a flat service fee or, more often, based on a percentage of the amount transferred — typically 3% to 5%. Cardholders may be encouraged to go ahead with an expensive transfer if the new card offers low, promotional interest rates on transferred balances. Some cards even charge 0% interest, but only for a defined time. Be aware that when that promotional period ends, interest rates can skyrocket. All terms depend on the credit card agreement.

When managing finances, a good rule of thumb is to minimize unnecessary fees and charges. When it comes to credit cards, these charges can include late fees, transaction fees, membership fees and more, although the biggest cost you can potentially incur with a credit card is usually interest on unpaid balances.

That said, a balance transfer to a low- or no-interest card can be less expensive than paying interest on the original card balance, even with a transfer fee. Cardholders should compare the pros and cons of a balance transfer before making the shift.

The main benefit of a balance transfer is that it can help you pay off your debt more quickly since there is less (or no) interest to pay. During an introductory 0% APR offer, the full amount of your payments will go toward paying down the principal balance and not towards accrued interest. Even with an offer with a lower APR, like 12%, you are still paying less interest than the typical 19.99% APR most conventional cards have.

Another reason to transfer a balance from one credit card to another is to make a large purchase that can’t be paid off all at once. A customer will make this purchase with a card of their choosing that offers benefits like rewards points, return protection or an extended warranty. Then they’ll transfer the balance to a card with fewer benefits (but a lower interest rate) until the debt can be paid off.

Several other reasons to transfer a balance from one credit card to another exist, but they all pretty much boil down to the same underlying thing: The cardholder wants a better interest rate as they work to pay off a balance.

Balance transfer times can vary greatly, from as little as two or three days up to six weeks or more. The transfer time is dependent on the banks involved, and each bank has its own estimates for how long they’ll need to complete the transfer.

The timing of balance transfers can be difficult to estimate. In most cases, it will take longer if the credit card issuer getting paid off requires receiving a paper check instead of an electronic transfer.

The best way to handle a balance transfer is to be patient and do what you can to keep track of progress. Be sure to continue making the minimum payment on any accounts affected by a balance transfer in the meantime, in case the payoff doesn’t arrive by a credit card bill’s due date. Do not stop keeping up with your responsibilities on the account until you receive a final notice the balance transfer is complete. Otherwise, you could risk lowering your credit score and be on the hook for unnecessary fees.

Only two things are truly necessary to save money through a credit card balance transfer: a credit card account with a balance and another account with a lower interest rate. The best cards to transfer a balance to will offer a 0% introductory APR on balance transfers for a certain amount of time. Currently, credit cards like these extend this timeframe between six and 21 months.

Another important consideration when choosing a new card for a balance transfer is the balance transfer fee. Occasionally, you may find a card offering a low introductory interest rate along with a $0 balance transfer fee, but most often the two will not go together.

Balance transfer fees are usually listed as having a minimum dollar amount or a fixed percentage—such as $5 or 5%, whichever is higher. When transferring a large balance, the transfer fee will be well above the minimum and the percentage can make a big difference. Many cards have fees of 3% or 5% for balance transfers, but these can reach outside that range, too. Sometimes, the issuer will waive the transfer fee for a new credit card account as a promotion.

You can use a balance transfer calculator to determine how much you’ll save by transferring a balance and factoring in the balance transfer fee.

Not everyone is in a position to apply for and receive approval for a new credit card. Someone who has experienced a decline in their credit score, for example, may still take advantage of a balance transfer to an existing card so long as the numbers make sense. In this case, make sure the interest rate is low enough on the card debt being moved that the savings will make up for any balance transfer fee.

Because the time it takes to complete a balance transfer can’t be narrowed down to a set number of days or weeks, it’s often necessary to track the progress of the transfer yourself. This helps you know when to start making payments on the new card and stop making payments on the old one. This is especially important if you’re close to a payment due date on the original credit card.

Tracking the balance transfer is a fairly simple process and involves regularly logging in to your credit card accounts to check for updates. The original credit card account should show a payment or credit for the amount being transferred once everything is complete. For the new card, a charge or debit for the amount transferred should be visible.

It’s important to keep making at least the minimum payment on the original credit card until the balance transfer is confirmed as complete. The credit card issuer isn’t likely to forgive any late fees or interest charges because of a transfer.

Although every bank will provide a different timeline for a balance transfer, all will almost always specify that it can take longer in certain circumstances. The estimates card issuers provide are good for planning purposes, but the only way to really know how long a balance transfer will take is to initiate it and track its progress. Eventually, it should be clear when one’s debt has been assumed under a new credit card. Only then should payments cease on the original account.

Related: How To Do A Balance Transfer With Amex