Credit Card Balance Transfers 101

A balance transfer does not automatically close or cancel your credit card even if you transfer the entire balance of that card to another credit card. You can contact the credit card issuer and cancel the card if you want, but this is not part of the balance transfer process.

On the other hand, if you did not transfer the entire balance because you didn’t have enough available credit or for some other reason, you will still have a balance on that card and need to make payments until it’s fully paid. 

If you haven’t already been provided checks as part of a balance transfer offer to initiate a transfer yourself, you'll need to provide the credit card company the name of the lender, the account information, and the amount you want to transfer. How much you can transfer depends on your available credit and the terms and conditions of your credit card. If you're approved for the transfer, the credit card company you're transferring the balance to will contact the lender and pay off the balance.

Your balance transfer may take some time to be approved. In the meantime, you will have to continue making whatever payments are due on your old card or loan. 

When your balance has been transferred, you can start to pay off the balance on your credit card.

Remember, transferring a balance doesn't close your other account - it only pays the portion of the balance transferred. After the transfer is complete, you should begin making payments on the transferred balance and understand the terms and conditions of the balance transfer offer.

Your balance transfer may be denied if your transfer exceeds your available credit or if you’re trying to transfer the balance from another card from the same issuer. Reach out to the credit card issuer and find out why the balance transfer failed. If your available credit is the problem, you may be able to transfer a lower amount. Your issuer may be able to make recommendations that may help you successfully carry out a balance transfer in the future. 

If permitted under the terms and conditions of your offer, you may be able to transfer money from a credit card into your bank account using a balance transfer check. If your credit card company sends you balance transfer checks, you can write one out to yourself and deposit the borrowed funds into your checking or savings account.

If you still owe a balance at the end of the promotional period for your balance transfer offer, the standard APR for balance transfers on your credit card account will apply to the unpaid portion of the balance transfer, as well as new balance transfers you may make. That's why it's important to choose a balance transfer card that gives you enough time to pay the balance in full.