A balance transfer card can help you consolidate debt, save money on interest and simplify your finances. Many cards have introductory 0% periods on balance transfers.
These 0% periods offer you enough time to pay off your debt and save money on interest. But beware of balance transfer fees – they can add up to more than you’ll save on interest.
Also read: A Beginner’s Guide to Capital One Balance Transfers
Requirements
If you have a large amount of debt on an existing card, a balance transfer can be a good way to save money on interest charges and pay down your debt faster. Chase offers several credit cards that feature introductory 0% periods on balance transfers. These cards come with other perks and incentives, including lucrative rewards and bonuses, making them worth considering for those looking to transfer a balance.
When you apply for a balance transfer card, Chase will review your current financial health. It may decline your request if it thinks you won’t be able to repay your balance. However, it might approve the transfer if it believes you can afford the transfer.
In addition to credit score, you also need to have enough income to cover the minimum monthly payments on your new balance transfer card. If you have low income, you may be required to show proof of additional sources of income, such as an employer’s severance pay or a retirement account.
Once you’ve been approved for a Chase balance transfer card, you can submit your balance transfer request online or by phone. If you want to submit a request over the phone, call the number on the back of your credit card and select “Set up transfer.”
It’s important to understand that balance transfers can take time to process. Most balance transfers are processed within a week, but it can take up to 21 days for your new card to reflect the transferred amount. This is due to the length of time it takes your current creditor to process the transferred amount from Chase.
Fees
Chase balance transfer cards are an excellent option for those looking to consolidate high-interest credit card debt and save on interest. They typically come with an introductory 0% APR offer that allows you to transfer your existing credit card balances to a new card for a period of time.
Unlike other credit cards, a balance transfer card from Chase does not charge an annual fee. However, they do have an intro fee of either $5 or 3% of the amount transferred, whichever is greater, on transfers made within 60 days of account opening. After that, the fee increases to 5% of the total amount transferred.
The fees associated with a balance transfer may not seem too significant at first glance, but they can add up quickly if you don’t carefully consider your options. They could also impact your ability to make purchases with the new credit card or reduce your available credit line.
When choosing a card, it is important to account for the transfer fee as well as any other fees that might be associated with the card. Some cards have an amount cap that limits the transfer to a certain amount.
Introductory periods
If you have credit card debt that is accruing high interest, transferring that debt to a balance transfer card with a lower promotional interest rate can help you reduce your monthly payments and pay off the debt faster. However, before you take advantage of a balance transfer offer, be sure to read the terms and conditions and understand how it will impact your overall financial situation.
One of the most important aspects to look for in a balance transfer card is its introductory period. The longer the introductory period, the more time you have to pay off your transferred balances without incurring any interest charges.
The introductory period is generally 12 months for purchases and 13 months for balance transfers, but some cards are available with introductory periods of 21 months or more. In addition to a lengthy introductory period, a balance transfer card can also offer lucrative cash-back rewards and bonuses for making purchases and paying off your balance before the introductory period ends.
Another factor to consider is whether you have to pay a balance transfer fee when you transfer your debt to your new credit card. Many of the best balance transfer cards don’t have any fee, but you should check the fine print to be sure.
For example, the Bank of America Customized Cash Rewards Card offers a $0 annual fee and an introductory 0% APR on purchases and balance transfers for 15 months. But it does have a 3% balance transfer fee that applies to each transfer made within the first 60 days of account opening.
Finally, if you don’t pay off your balance in full by the end of the introductory period, you may be charged the regular APR on all of your outstanding balances. This can be a costly situation, so it’s best to make a plan to pay off your balance before the introductory period ends.
Long-term value
If you’re looking for a balance transfer card with long-term value, consider the Chase Slate Edge(sm), which offers an introductory 0% APR on purchases and balance transfers for 18 months. After that, the card reverts to a variable APR that can be lowered through responsible use.
This card also has a longer introductory period than some of its competitors, giving you more time to pay down your debt without interest charges. It also comes with a few perks, like primary rental car coverage and roadside assistance. However, these features don’t add much in the way of spending rewards, and there’s a balance transfer fee that will make it a less-than-value card.
Another option is the Chase Freedom Unlimited Card, which has an introductory 0% APR on balance transfers and purchases for the first 15 months. It also comes with a $200 bonus when you spend $500 on purchases within the first three months.
There are a few cards that offer ongoing cash back and rewards beyond the introductory period, but those typically charge annual fees. If you don’t plan to keep this card for the long term, a card with no annual fee or a rewards credit card may be more suitable.