How to Transfer Your Credit Card Balance

If you are working to eliminate your credit card debt, a balance transfer to another credit card may be an effective way to reduce your interest payments as you pay off your credit card balances.

Balance transfers allow you to move outstanding debt from a card with a higher APR to a card with a lower APR. By doing so, they can help you keep your credit card interest payments at manageable levels and establish healthy credit habits that can help improve your credit score.

Let's explore the steps you'd need to take to transfer your credit card balances. 

1. Consider any balance transfer options on your existing credit cards

Check the balance transfer APR for balance transfers on each of your existing credit cards – you may already have access to a balance transfer offer. Take note of how long the low intro APR period lasts, as well as the balance transfer fee and limit. That can help you decide if the offer makes sense given how much debt you want to transfer and what you can afford to pay each month.

The maximum amount you can transfer could be the credit limit on your card, or it may be lower than the credit limit for certain cards. However, you typically cannot transfer more than the credit limit on the card at any given time. For example, you cannot transfer a balance greater than $1,000 onto a card with $1,000 credit limit. The amount you can transfer may be further reduced by any fee that applies to the balance transfer.

2. Weigh offers for new balance transfer cards

In addition to looking at your existing credit cards, check to see if you have any pre–qualified offers for a new balance transfer credit card. Those offers can show you which cards you may be more likely to qualify for and may not impact your credit.

For context, balance transfer credit cards typically offer a low introductory rate on balances transferred for a certain period of time.

You may compare any pre-qualified offers you have with other new balance transfer credit cards by checking online or with your current card issuers. Consider any introductory rates on balance transfers, how long those rates will last, applicable fees and the APR that will apply after the introductory rate expires.

Interested in applying for a new balance transfer credit card? Citi has a wide array of options, including the Citi Simplicity^® Card, Citi Double Cash^® Card, Citi Custom Cash^® Card, and Citi Diamond Preferred^® Card.

3. Transfer your balances

Once you weigh your options and choose one that makes sense for you, you may move forward with transferring your balances. That might mean applying for a new credit card or accepting an offer from an existing credit card.

From there, the process of transferring your balance is usually simple: the issuer of your balance transfer credit card will collect the information about the balance you are moving and will process the transaction on their end. Some issuers may instead send you a check, which you may use to pay down your balances, and others may deposit the funds through a direct ACH transfer. Depending on your issuer, you may be able to complete the balance transfer process online or through your credit card's app.

Once your balance transfers are official, you can focus on paying off that credit card before the promotional period ends. That way, you may avoid paying interest and help maximize your savings.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.