Can You Transfer Money From One Visa Gift Card to Another

Have you establish yourself in credit card debt? Are you lot paying interest every calendar month? Does information technology feel incommunicable to brand a dent in your credit card balances because you're paying then much interest?

A balance transfer is a way to movement credit carte debt from 1 credit card to another with the goal of saving money on interest.

Jump to our top balance transfer card picks Best Balance Transfer Credit Cards

When y'all're paying interest on a credit carte, transferring debt to a card with a lower interest rate can aid you reduce the amount of interest y'all're charged every bit y'all pay information technology off.

Think of a balance transfer as a fashion to pay off your credit cards with another credit card.

Some balance transfer credit cards come with a 0% Apr for a limited time. This means you lot can temporarily break interest while you pay off your credit carte debt.

Remember, you can avert credit card interest on most cards by paying your balance on time and in full every month. Merely if you're already in debt and have a plan to pay it off, a residuum transfer may be one way you can strategically reduce the amount of interest you pay.

Keep in heed that a balance transfer is not magic. You lot will still owe the debt. If you don't pay your debt back in a timely manner, you could however finish upward paying lots of extra money in the course of interest.

Keep reading to learn more than nigh:

How balance transfers piece of work
Deciding whether a balance transfer is a skillful idea
How balance transfers impact your credit
How to actually do a balance transfer
Our favorite credit cards with balance transfer offers

What Is a Credit Bill of fare Rest Transfer?

You might have heard the term "residual transfer credit card," but a more accurate description is "credit bill of fare offer favorable to residue transfers."

Pretty much any credit carte will let you transfer a balance away from it. Many credit cards will let you transfer a balance to them as well.

Some credit cards, withal, have terms that are more than favorable for incoming balance transfers. These may include:

Lower fees on incoming residue transfers
Lower regular interest charge per unit on residual transfers
Limited-fourth dimension low introductory APRs on residue transfers

Read more 2021 Survey: 78% Remember Residuum Transfers Are Constructive for Debt Payoff or Reducing Interest

Fees for Residue Transfers

Residuum transfers usually aren't free.

Even those credit cards offering an introductory zero percentage interest rate mostly come with a cost in the form of a rest transfer fee, which will typically exist charged as a percentage with a predetermined minimum.

Most credit card issuers charge betwixt two% and v% of the residual as the fee for the transfer, with a minimum fee of about $5. Some card issuers waive this fee if the residue transfer is made within a certain number of days of opening a new account.

It'south also worth noting that balance transfer fees unremarkably testify up separately from the transferred amount on the statement of the card you transferred the balance to.

2021's All-time Credit Cards With No Balance Transfer Fees and 0% APR

Cheque 'em out!

Introductory APR Periods

Many residue-transfer-friendly cards feature an introductory period with a lower APR on new balance transfers.

Banks often utilize these offers to concenter new customers. This is why you can't, for example, transfer a residue from ane Citi credit carte du jour to another Citi card — the bank isn't getting a new customer or taking on whatsoever new (potentially very profitable) debt.

The introductory APRs on these residuum transfer offers are often 0% for 12, 18, or 24 months. While a 0% APR can be very helpful for avoiding involvement, they can too open the door to more than credit carte debt. We think it's of import that yous have a plan for how you'll pay off all (or at least most) of the debt during the introductory catamenia. It'southward typically not wise to transfer a balance to buy some time without a solid program in identify.

Some people (hopefully not you!) will go through this unfortunate scenario:

You open a credit card with a 0% APR balance transfer offer.
You lot transfer debt to that card and and so simply pay the minimum payments every calendar month.
You lot continue to rack upwards more than credit card debt on the original card the balance was transferred away from.
Your 0% introductory menstruum runs out. Now you lot're stuck paying high interest on two cards. You're deeper in credit carte debt and you lot don't have the opportunity to transfer either rest to another card.

The scenario above is a great way to dig yourself into a deep financial hole and go buried in debt. Too, increasing your credit carte debt later you lot transfer a residuum to a new bill of fare might severely damage your credit. Higher credit menu balances could increase your credit utilization rate — a major factor in credit scores.

If something prevents you from paying off a transferred balance before your involvement rate increases, information technology may be wise to showtime looking for another residuum transfer opportunity. Another transfer could assist you avoid a steep increase in the April. Yet be enlightened that continually transferring balances from one card to another volition keep you in credit card debt. This design can limit your financial freedom and make it harder to reach or maintain good credit scores.

What Types of Balances Can I Transfer?

Credit cards can be used for remainder transfers from many dissimilar kinds of accounts. Other credit cards are the most obvious choice, but car loans, student loans, personal loans, and other installment loans tin be eligible as well.

You won't exist able to transfer a balance between cards from the same carte issuer. Then you tin't transfer a residual from one Hunt bill of fare to another, for example, or one Banking concern of America card to another. Credit bill of fare issuers don't want you to take advantage of them by just transferring a balance back and forth between their cards.

Other than that, near credit card companies will allow you to transfer a residuum from practically any account that requires a monthly payment.

Yous can even behave a bank residuum transfer, where y'all asking a balance transfer with a credit card, only instead of paying off another carte's balance, the funds go to your banking company account. Then, the amount of coin that went to your bank business relationship has to be paid off as usual. This could be helpful if you need cash in a pinch.

Merely when it comes to installment loans, it's not necessarily a good idea to transfer the balance to a credit card just because you can.

Installment loans don't hurt your credit much compared to revolving credit card debt. Even if you have a very large installment loan, it's better than attributable the debt on a credit menu. Installment loans frequently feature lower interest rates than credit cards anyway. So, if y'all have an affordable involvement rate, it may exist all-time to leave your installment account parked with the same banking company and pay it off as rapidly every bit you can.

Of class, at that place are a few scenarios where it might be a good thought to transfer an installment loan to a credit bill of fare with a 0% April. This could be true if your installment loan is very small, or has a very high April. In these instances, you might relieve some money past transferring the debt to a low-residuum credit card. You'll have to do some math to figure out the full amount you'll cease up paying in each case. Also, be prepared to take a potential hit to your credit scores if yous transfer installment debt to a revolving business relationship.

Balance transfers sometimes come with certain terms and limitations. American Express, for example, requires the account from which the debt is coming to be in your proper name. Be sure to check the terms that come with your card to learn exactly what you tin can exercise, and contact your carte du jour issuer if you have any questions.

How Long Will a Balance Transfer Take?

Remainder transfers are never instant. In some cases, transferring a balance takes just a few days, while in others you could have to wait much longer.

Y'all can mostly look a residual transfer to accept two to three weeks at most when you're dealing with major issuers.

Here's an thought of what you can expect from seven big-league issuers, equally a rule of thumb.

American Express: five–7 days
Bank of America: Upwards to 5 days for existing accounts and fourteen days for new accounts
Capital letter One: iii–14 days, depending on whether you lot requested the transfer online or past mail
Hunt: Usually within 7 days, though it may take upwardly to 21 days
Citi: 2–21 days; depends on whether you're transferring to a new or existing account, and which companies are involved
Discover: Up to 7 days for existing accounts and 14 days for new accounts
U.S. Bank: Up to fourteen days

Keep in heed that these times may vary significantly depending on the situation. Contact your issuer directly if you lot'd similar to discuss its policies or the status of your own transfer (you lot may too be able to bank check the status of your transfer online).

Should I Transfer My Balance?

Getting a card with a cipher-interest introductory rate, peculiarly if that teaser charge per unit is good for 21 months, equally some are, can salve hundreds of dollars in involvement and help you pay off your remainder much sooner. As long every bit you're not seen as risky past creditors, there may exist some proficient balance transfer offers available to yous.

Here are some signs a balance transfer might exist a good fit for you:

You accept a improve paying job after a menstruation of unemployment or underemployment and you're ready to lower your debt.
Yous've committed to terminate overspending and you're prepare to create a program to pay off your debt.
Your credit rating is good to fantabulous and yous think you may exist able to qualify for a new carte du jour with an attractive balance transfer offer.

Unfortunately, if you take poor credit scores or you're going through a menstruation of financial distress, y'all may not exist able to qualify for a new credit bill of fare with favorable residual transfer terms. If this describes you lot, y'all may need to consider other options like credit counseling or perhaps even bankruptcy.

It's up to y'all to make up one's mind whether a balance transfer offer is wise in your situation. Similar many tools in your financial toolbox, this ane is precipitous. Develop a strategy for using it to become what you want and wield it with a healthy supply of subject.

Fifty-fifty if you can qualify for a balance transfer offering, consider your plan for paying down the debt before you apply. You may put your fiscal future at risk if yous transfer a rest to defer interest and hope your state of affairs will improve without a solid plan to pay off your debt.

If you lot're considering transferring a remainder away from an installment loan, think advisedly. Paying off installment debt with a credit carte du jour may non be wise, peculiarly if the loan amount is large. In most cases you'll be better off to leave installment loans alone, as long as the APR isn't besides high.

Examples: Two Unproblematic Balance Transfer Scenarios

Here are two unproblematic examples that show how a balance transfer might save you money.

Imagine you owe $1,000 on a credit card with a 20% Apr. Unfortunately, you're merely able to pay $thirty/month toward the debt.

If y'all pay only $xxx every month and don't spend any more than on the card, it would take over four years to pay off the unabridged balance. In that time, y'all'd besides be spending over $470 in involvement on what was originally a $1,000 balance! When you only pay the minimum required on a card, most of what you lot're paying is interest. Paying the minimum payment tin make it feel incommunicable to make a dent in your debt.

Larn more than virtually how paying a credit bill of fare and minimum payments piece of work here.

Card With 0% Intro APR on Balance Transfers

Building on the example above, permit'due south say you use for a new credit card that offers a 0% intro April for 18 months on remainder transfers. You're canonical with a $2,000 credit limit.

You transfer your entire rest from the first bill of fare to the new card and still have $i,000 worth of available credit on the new account. This item menu's terms feature no fee on residuum transfers made within the first 60 days later on a new account is opened. Y'all have advantage of the offering and are charged $0 in balance transfer fees. The card has an introductory 0% April period on balance transfers for 18 months. Subsequently, a regular April of twenty% takes effect — the same regular APR charged on your previous card.

If you go along to pay $thirty each month later transferring the balance, your payments volition go much further. For the beginning xviii months, the entire $30 you pay each calendar month is applied to your principal (the $1,000 you borrowed) instead of being applied toward interest. In month 19, when your regular interest rate kicks in, you'll owe $437.67. If you continued paying $30 per calendar month at that bespeak, information technology would take an additional xviii months to pay off the remaining balance, because you'd be paying interest on the remaining residue as you pay it down. The total interest you lot would pay in the remaining eighteen months after the 0% introductory APR would be $75.65.

In this example, even though the two cards take the aforementioned regular April, yous would save coin and go out of debt faster. Because of the introductory 0% APR, you'd pay off the original $1,000 debt over ane year sooner than the original scenario. Y'all'd also save almost $400 in interest.

Card With 8% April on Balance Transfers, Just No Intro April

Let's imagine a second scenario. You're approved for a card with a $2,000 credit limit. It doesn't have a 0% introductory Apr, just instead features a regular April of eight% on all purchases and balance transfers. The terms of the card require a fee for residual transfers — calculated every bit 5% of the remainder or $10 (whichever is greater).

You transfer the unabridged $i,000 balance to this carte. Since five% of $1,000 is $50, and that'due south more than than $10, right away y'all will owe $one,050 on the new card. If y'all pay $30 each month with this 8% APR, it would take you over 3 years to pay off the residue, and you'd pay $134.70 in interest.

In this case, since the April is lower, y'all'd end up paying off the original $1,000 debt nearly a year sooner. Yous'd also relieve over $300 in interest. It's a good deal, only not quite equally skilful as the offering of 0% April for 18 months with no balance transfer fee.

Hopefully these ii examples illustrate how a residue transfer might exist able to save you money. They should likewise demonstrate why it's important to shop around when y'all're considering a new remainder transfer credit carte. Finding the all-time offer might help you save more money and go out of debt sooner.

Just accept note that both of the examples above make an of import assumption. They presume you're non accumulating any boosted credit card debt while you're paying off your existing debt. Taking on more debt after a rest transfer can dig you into a deeper financial pigsty. Increasing your credit carte debt (and particularly your credit utilization) could accept a negative touch on your credit, as discussed in the side by side section.

How Will a Balance Transfer Bear on My Credit?

Some people are hesitant to open a new card with a rest transfer offer because they fear it might lower their credit scores. Depending on your credit history, that might be true in the short term. But a residue transfer can still be a slap-up move for your credit and your wallet in the long run.

Opening a new credit card and transferring a rest to it can affect your credit scores in several means:

When you apply you'll typically become a difficult research on your credit reports, which tin lower credit scores slightly.
Opening a new credit menu can lower your average age of accounts, which tin lower credit scores.
Having a new credit card volition increase your full credit limit, which tin can lower your credit utilization; this can be good for your credit scores.
If you transfer several balances over to the new carte you can reduce your number of accounts with balances, which tin can exist good for your scores.

Check out credit skilful John Ulzheimer's Q&A video to larn more.

What Happens When You Open a Balance Transfer Credit Card?

When y'all open a new credit menu in order to transfer a residue from an older bill of fare, it's what happens before and after the rest transfer that impact your credit almost. To have reward of a zero percent interest rest transfer, y'all must beginning qualify for the offering. In order to authorize, you have to utilize.

Insider tip

Non sure if you'll qualify for a particular credit carte du jour? Learn how to see if you're pre-qualified for any credit cards earlier you utilize, without hurting your credit scores.

Enquiry for Credit

When y'all apply for a residuum transfer card, the credit card issuer will pull your credit. At this signal, an research volition exist added to your credit report.

When it comes to your credit scores, the impact of hard credit inquiries is often overstated. Inquiries are largely responsible for ten pct of FICO Scores. Merely credit scores just count inquiries made in the last 12 months. Unless you have numerous inquiries in the last year, inquiries usually aren't a big deal where your credit scores are concerned.

Inquiries are a normal part of the process of applying for new credit. But retrieve non to utilize for as well many new credit cards (or other forms of credit) in a curt amount of time. Otherwise, those difficult inquiries could potentially become a problem.

New Account Opening AKA "Time in File"

Another factor that impacts your credit scores is the age of your credit card accounts.

If your application is approved, you'll receive a new credit card and the card issuer will begin reporting the new account on your credit reports.

Your length of credit history is largely responsible for 15 percentage of your total FICO score. Credit scoring models consider the date each of your credit accounts were opened to determine the historic period of each account individually and the average historic period of your accounts in aggregate. Yous may encounter a slight drop in your credit scores when you open a new account due to this factor. Yet, equally with the inquiry, the credit score bear upon is typically minor.

Credit Carte du jour Balances and Revolving Utilization

When you open a new credit card account, the new credit limit (and whatsoever balance you take) will impact your credit scores because your revolving utilization charge per unit will change.

Revolving utilization measures how high your balances are in relation to your credit limits. It's largely responsible for 30% of your FICO credit scores.

The lower your revolving utilization drops, the higher your credit scores volition typically climb. This is why maxing out one or more credit cards tin can potentially driblet your credit scores quickly.

When you open a new balance transfer credit card — or any credit menu for that matter — the credit limit on the account volition be factored into your total or aggregate revolving utilization. The addition of the new account will most likely increase your overall bachelor credit.

And therein lies the silver lining: Opening a balance transfer card may really assistance to boost your credit scores. The key is to keep the onetime credit bill of fare open after y'all transfer the residue to the new card. You should besides avoid charging new debt on the original card. Otherwise, yous're defeating the purpose of the introductory balance transfer offer and could be setting yourself up for a credit and financial disaster in the hereafter.

Number of Accounts with Balances

There's another potential way a new residual transfer card might improve your credit scores as well. If you open a new credit carte du jour and transfer outstanding balances away from several existing credit carte du jour accounts at once, you may lower the number of accounts with balances that prove upwards on your credit reports.

FICO scoring models consider the number of accounts with balances on your credit reports — the fewer, the amend. When several of your existing accounts are updated to show $0 balances, your credit scores may benefit. Again, just make certain non to close your original credit cards later they're paid off or y'all could chance damaging your scores by accident.

How to Transfer a Credit Menu Balance

Once you've decided you want to do a residual transfer, the process is pretty easy.

ane) Figure out where the balance is going

First, you need to know where yous're transferring the balance. Some options may include:

A credit card you already have that charges a lower involvement rate than what you're paying on another account
An existing credit menu that has extended a 0% or low-charge per unit balance transfer offer to you
A new credit carte yous but opened, possibly with a special offering favorable to balance transfers

Looking for a new credit card with a balance transfer offering? See our favorites here.

2) Determine credit available

2d, you should verify the credit limit and available credit on the card you're planning to transfer the balance to. Brand note of how much credit is available.

Also, look for whatsoever limits on balance transfer amounts. Some cards may limit how much you tin can transfer, and that may not be equal to the credit limit.

three) Sympathise the terms and fees

3rd, read and empathise all the terms of the card to which y'all're transferring the balance. Here are some things to consider about the terms and fees:

If in that location'south a special 0% intro APR on balance transfers, make sure you understand the length and conditions of that special period. If you don't accept a programme to pay off the residuum completely by the time the 0% introductory period is over, you might demand to reconsider whether a balance transfer is a good idea for y'all.
If yous're applying for a new menu, exist certain the charge per unit yous employ for is the rate you get. Check the terms before you lot apply for the new card and over again when you're canonical. Depending on your credit history, the introductory APR may not be the 0% you were expecting.
If y'all plan to use the card for purchases, see if the new Apr applies to both transferred balances and new purchases. Some cards will simply utilise the 0% APR to the transferred debt and charge a much higher APR for new purchases.
Read the fine impress of your balance transfer offer. See if the card issuer will apply involvement retroactively to the date the balance was showtime transferred if the debt isn't paid in full by the end of the introductory period. This possibility isn't very probable with pop balance transfer cards. However, if a card issuer does charge retroactive involvement it could greatly increase the overall toll of the transfer if you don't pay it off in time.
Check the card terms for any rest transfer fees and take those into business relationship. These fees could increment the overall amount of debt you owe, at least in the brusque term.

Balance transfer offers vary. Information technology'due south important to read the total terms and weather condition of any offering (and any credit carte du jour) to be certain you lot empathize everything that will happen if yous make a residuum transfer. In the post-obit example, making a remainder transfer at the intro APR will touch the interest charge per unit for purchases and how interest is calculated on purchases:

waive other offers

4) Decide how much you want to transfer

4th, figure out how much you want to transfer. There are a few things you'll need to consider while deciding how much y'all desire to transfer:

How much credit is available on the card you lot're transferring the balance to?
Is there a limit to how much money tin can be transferred?
Will a fee for the incoming transfer exist added to the account you lot're transferring a balance to? If so, how much?

Balance transfer fees could reduce the amount of debt you tin transfer (if you're aiming to use the maximum allowed).

five) Initiate the transfer

Finally, when you empathise the terms and know how much debt you desire to movement to the new business relationship, y'all tin initiate the transfer.

You initiate the transfer using the card you lot're transferring the balance to.

You tin generally initiate a balance transfer on the website of the card where the debt will exist moved. You probably won't take to do anything special on the website of the card you're paying off.

If you can't find out how to initiate a balance transfer on the issuer's website, call the phone number on the back of your card for assist. Once you start the transfer, you should run into the residual on the card you're transferring to increase. The balance on the card you lot transferred from should decrease. You may need to allow around a week for these changes to take place, just the timing tin can vary between carte issuers.

6) Pay off your credit menu debt!

Now that you've made the residue transfer, brand sure you pay off your credit card debt before the reduced rate expires to eliminate or avert involvement. Y'all may exist tempted to shut the card you transferred the balance away from, simply it's probably better for your credit scores to leave that card open and not use it.

Y'all may as well want to take this opportunity to think about your spending habits. Information technology'due south of import to avoid accumulating more credit card debt while you're paying off the transferred balance and so you don't stop upward in the aforementioned situation again.

1 strategy for paying off a transferred remainder during a 0% introductory flow is to set up an automatic payment plan. Automatic payments may assist you pay off the card's balance before the low-rate period ends. Use a payment calculator to determine how much you will need to pay each month to become to a $0 balance before the introductory Apr ends.

Here'due south an example. If you accept reward of a nothing percentage offer that lasts 12 months, a $5,800 residue transfer becomes roughly $half-dozen,000 in one case balance transfer fees are applied. In this scenario you lot'd need to pay around $500 per month to take intendance of the full balance past the time the introductory rate expires.

If y'all're not sure you'll be able to avoid adding more debt to the new card rest, you lot should recall carefully before getting the account and transferring your balance. Depending on the offer, the new April could be higher than the APR on the card y'all left behind, once the introductory rate ends.

Some other smart strategy is to transfer the balance over to your new account and so put both cards away until y'all get the rest downwardly to zero. Don't make either card an selection for new purchases until you're credit menu debt free.

How to Pay Off Debt: half-dozen Strategies That Work

Were you able to better your financial situation using a rest transfer? Let us know!

What Are the Best Balance Transfer Cards?

Our current picks for the best residue transfer credit cards are:

U.S. Banking concern Visa® Platinum Menu (Review)
Citi® Diamond Preferred® Card (Review)
Citi Simplicity^® Carte (Review)
Wells Fargo Platinum carte (Review)

You can larn more about these cards and why we chose them in our mail service: Best Balance Transfer Credit Cards.

The information related to U.South. Depository financial institution Visa® Platinum Card has been collected by Credit Card Insider and has not been reviewed or provided by the issuer or provider of this product.

Citi is a Credit Card Insider advertiser.

Citi is a Credit Menu Insider advertiser.