{"id":686,"date":"2023-11-18T04:05:08","date_gmt":"2023-11-18T04:05:08","guid":{"rendered":"http:\/\/localhost\/mrc_blog\/creditcards\/balance-transfer-credit-card-guide\/"},"modified":"2023-11-24T05:34:06","modified_gmt":"2023-11-24T05:34:06","slug":"balance-transfer-credit-card-guide","status":"publish","type":"post","link":"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/","title":{"rendered":"Balance Transfer Credit Card Guide"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_17 counter-hierarchy counter-decimal ez-toc-grey\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" style=\"display: none;\"><i class=\"ez-toc-glyphicon ez-toc-icon-toggle\"><\/i><\/a><\/span><\/div>\n<nav><ul class=\"ez-toc-list ez-toc-list-level-1\"><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/#What_is_a_balance_transfer_credit_card\" title=\"What is a balance transfer credit card?\">What is a balance transfer credit card?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/#Why_do_I_need_a_balance_transfer_card\" title=\"Why do I need a balance transfer card?\">Why do I need a balance transfer card?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/#How_does_a_balance_transfer_work\" title=\"How does a balance transfer work?\">How does a balance transfer work?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/#Heres_how_it_works\" title=\"Here&#8217;s how it works:\">Here&#8217;s how it works:<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/#What_are_the_balance_transfer_fees\" title=\"What are the balance transfer fees?\">What are the balance transfer fees?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/#What_are_the_benefits_of_a_credit_card_balance_transfer\" title=\"What are the benefits of a credit card balance transfer?\">What are the benefits of a credit card balance transfer?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/#What_are_the_downsides_of_a_credit_card_balance_transfer\" title=\"What are the downsides of a credit card balance transfer?\">What are the downsides of a credit card balance transfer?<\/a><\/li><li class=\"ez-toc-page-1 ez-toc-heading-level-2\"><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/#How_do_I_choose_the_best_balance_transfer_credit_card\" title=\"How do I choose the best balance transfer credit card?\">How do I choose the best balance transfer credit card?<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time:<\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">Min<\/span><\/span>\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"686\" class=\"elementor elementor-686\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-6569ae63 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"6569ae63\" data-element_type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-731d40b9\" data-id=\"731d40b9\" data-element_type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t\t\t<div class=\"elementor-element elementor-element-46b50bc4 elementor-widget elementor-widget-text-editor\" data-id=\"46b50bc4\" data-element_type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t<style>\/*! elementor - v3.17.0 - 08-11-2023 *\/\n.elementor-widget-text-editor.elementor-drop-cap-view-stacked .elementor-drop-cap{background-color:#69727d;color:#fff}.elementor-widget-text-editor.elementor-drop-cap-view-framed .elementor-drop-cap{color:#69727d;border:3px solid;background-color:transparent}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap{margin-top:8px}.elementor-widget-text-editor:not(.elementor-drop-cap-view-default) .elementor-drop-cap-letter{width:1em;height:1em}.elementor-widget-text-editor .elementor-drop-cap{float:left;text-align:center;line-height:1;font-size:50px}.elementor-widget-text-editor .elementor-drop-cap-letter{display:inline-block}<\/style>\t\t\t\t<p>\u00a0<\/p><p>A balance transfer credit card could be your solution to paying off your existing debt faster. But is it the right type of credit card for you? We lay it down for you &#8211; the upside and downside of balance transfer cards \u2013 to help you decide.<\/p><p>\u00a0<\/p><h2><span class=\"ez-toc-section\" id=\"What_is_a_balance_transfer_credit_card\"><\/span><strong>What is a balance transfer credit card?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>A balance transfer card is a type of credit card with little to no interest rate. Banks and issuers use balance transfers to entice people with existing credit card debt to transfer their balances from one card to another. By transferring your high-interest balance to a 0% interest credit card, you save money on payments.<\/p><p>\u00a0<\/p><h2><span class=\"ez-toc-section\" id=\"Why_do_I_need_a_balance_transfer_card\"><\/span><strong>Why do I need a balance transfer card?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p><strong>Consider this:<\/strong> The average Canadian held $3,954 in credit card debt in 2016. 40% of us carry a balance on our cards. With <a class=\"wpil_keyword_link \" href=\"https:\/\/myratecompass.ca\/credit-cards\/by-category\"  title=\"credit cards\" data-wpil-keyword-link=\"linked\">credit cards<\/a> having an interest rate of 19.99% or more, you could be paying at least $790 per year in interest alone!<\/p><p>If you have a large credit card debt that does not seem to go away, then perhaps you should <a href=\"http:\/\/localhost\/mrc_blog\/creditcards\/5-things-to-consider-when-applying-for-your-first-credit-card\/\" target=\"_blank\" rel=\"nofollow noopener\">consider balance transfer credit cards<\/a>. You can transfer your balance from a high-interest card to a balance transfer card and enjoy low (2.99%) to 0% interest rate for 6-12 months (or possibly a longer paying period).<\/p><div class=\"articleBannerM\"><div class=\"\">\u00a0<\/div><\/div><h2><span class=\"ez-toc-section\" id=\"How_does_a_balance_transfer_work\"><\/span><strong>How does a balance transfer work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>A balance transfer allows borrowers to consolidate their debt into a single credit card to save on interest payments. This also makes it easier for you to take stock of your debt, and track your balance and payments.<\/p><h2><span class=\"ez-toc-section\" id=\"Heres_how_it_works\"><\/span>Here&#8217;s how it works:<span class=\"ez-toc-section-end\"><\/span><\/h2><ul><li>Depending on your <a class=\"wpil_keyword_link \" href=\"https:\/\/myratecompass.ca\/blog\/credit-building\/credit-score\/\" title=\"credit score\" data-wpil-keyword-link=\"linked\">credit score<\/a>, you will be approved for a balance transfer credit card.<\/li><li>Once approved, the issuer will ask for the following details: who you want to pay, their account numbers, and how much of the balanceyou are willing to pay.<\/li><li>You can transfer your balances from gas cards, store credit cards and other types of credit cards to your balance transfer card.<\/li><li>Like any other credit card, your balance transfer card has a credit limit. You can only transfer up to that amount.<\/li><li>Once your card balance transfer is approved, the provider will contact your creditors and pay the amount you indicated. This process usually lasts for 1-2 weeks.<\/li><li>You can also use checks tied to your balance transfer credit card to transfer non-credit-card balances to your new credit card.<\/li><\/ul><p><strong>Tip<\/strong>: Make sure to complete the transfer within 60 days from the date you opened your account. If you have payments due within this timeframe, make those payments by their due date to prevent late charges.<\/p><p>\u00a0<\/p><h2><span class=\"ez-toc-section\" id=\"What_are_the_balance_transfer_fees\"><\/span><strong>What are the balance transfer fees?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>The balance transfer fee in 2017 \u00a0was \u00a03%. This means that you pay $300 in fee for a $10,000 balance transfer. Depending on how much you can save on interest charges, this may or may not be a good idea.<\/p><p>If you are lucky, you may find a 0% intro balance transfer rate as an ongoing promotion from a credit card company or bank. You can use an online calculator to compare credit card fees and compare <a class=\"wpil_keyword_link \" href=\"https:\/\/myratecompass.ca\/deals\" title=\"offers\" data-wpil-keyword-link=\"linked\">offers<\/a>.<\/p><p>\u00a0<\/p><h2><span class=\"ez-toc-section\" id=\"What_are_the_benefits_of_a_credit_card_balance_transfer\"><\/span><strong>What are the benefits of a credit card balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Balance transfer credit cards are great for paying down credit card debt faster and for a lower interest rate. When used right they can:<\/p><ul><li><strong>Help you catch up on your existing debt.<\/strong> By transferring your balance on a low APR card, you can save money from your interest. This can be used to pay for the principal balance so that you eliminate debt ina shorter amount of time.<\/li><\/ul><ul><li><strong>Make it easier for you to track your balance and payment.<\/strong> By consolidating your debts on one card, you only need to pay one creditor on one due date. <em>Did you that know you can also transfer loans for appliances, cars, and other installment payments to your card?<\/em> Just request for checks that are tied to your card.<\/li><\/ul><ul><li><strong>Enhance your financial well-being.<\/strong> By dividing the balance for a longer timeframe, say 12 months, you can <em>finally<\/em> catch up on payments.<\/li><\/ul><p>\u00a0<\/p><h2><span class=\"ez-toc-section\" id=\"What_are_the_downsides_of_a_credit_card_balance_transfer\"><\/span><strong>What are the downsides of a credit card balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>While a balance transfer seems a good opportunity to pass up, it does not come without downsides. While a balance transfer seems like such a good opportunity to pass up, it does not come without its downsides.<\/p><p>Here are the cons of a credit card balance transfer:<\/p><ul><li>It requires a good credit score to get the best options.<\/li><li>You could end up with higher APR if you don&#8217;t pay your balance in full at the end of the promotional rate.<\/li><li>You may get disqualified for the low promo interest rate if you miss a single payment.<\/li><li>A balance transfer could negatively affect your credit score. On the other hand, you can improve your score with consistent on-time payments each month.<\/li><\/ul><p>With more credit available to you, you may be tempted to add more to your debt.<\/p><p>While there are downsides to a balance transfer, it is still worth considering for long-term financial planning. When used appropriately, it can help you save money and eliminate debt faster. If you are ready to choose a credit card for balance transfer, read some of our tips below.<\/p><p>\u00a0<\/p><h2><span class=\"ez-toc-section\" id=\"How_do_I_choose_the_best_balance_transfer_credit_card\"><\/span><strong>How do I choose the best balance transfer credit card?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>There are three features that you must evaluate when looking for a low balance transfer credit card:<\/p><ul><li>Interest rate<\/li><li>Length of time of promotion<\/li><li>Balance transfer fee<\/li><\/ul><p>It is best to compare these features when choosing a credit card. A good credit card comparison tool can help you with this.<\/p><p><strong>Tip:<\/strong> When choosing between balance transfer credit cards, assess whether you can save more with a 0% interest card with a fee, or a credit card with no fee but with a 2.99% interest rate. You don&#8217;t want to pay the 3% balance transfer fee just for the sake of a 0% interest promotion.<\/p><p>At the same time, look for cards that have a longer promotional period. This ensures that you can finish paying off your balance before the regular interest rate kicks in.<\/p><p><em>Need help finding the <a href=\"\/best-credit-cards\/best-0-balance-transfer-credit-cards-canada\" target=\"_blank\" rel=\"noopener\">best balance transfer credit card<\/a>? Check our website to compare credit cards and find the right one for you. <\/em><\/p><div class=\"articleBannerM\"><div class=\"\">\u00a0<\/div><\/div>\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p><span class=\"rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time:<\/span> <span class=\"rt-time\">4<\/span> <span class=\"rt-label rt-postfix\">Min<\/span><\/span> \u00a0 A balance transfer credit card could be your solution to paying off your existing debt faster. But is it the right type of credit card for you? We lay it down for you &#8211; the upside and downside of balance transfer cards \u2013 to help you decide. \u00a0 What is a balance transfer credit&hellip; <a class=\"more-link\" href=\"https:\/\/myratecompass.ca\/blog\/creditcards\/balance-transfer-credit-card-guide\/\">Continue reading <span class=\"screen-reader-text\">Balance Transfer Credit Card Guide<\/span><\/a><\/p>\n","protected":false},"author":5,"featured_media":687,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"footnotes":""},"categories":[1],"tags":[21],"class_list":["post-686","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-creditcards","tag-blog-post-template-1-main-template-to-use","entry"],"aioseo_notices":[],"featured_image_urls":{"full":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",924,614,false],"thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card-150x150.jpg",150,150,true],"medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card-300x200.jpg",300,200,true],"medium_large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card-768x511.jpg",750,499,true],"large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",750,498,false],"1536x1536":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",924,614,false],"2048x2048":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",924,614,false],"post-thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",924,614,false],"post-image-medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",376,250,false]},"post_excerpt_stackable":"<p>Table of Contents What is a balance transfer credit card?Why do I need a balance transfer card?How does a balance transfer work?Here&#8217;s how it works:What are the balance transfer fees?What are the benefits of a credit card balance transfer?What are the downsides of a credit card balance transfer?How do I choose the best balance transfer credit card? Reading Time: 4 Min \u00a0A balance transfer credit card could be your solution to paying off your existing debt faster. But is it the right type of credit card for you? We lay it down for you &#8211; the upside and downside of&hellip;<\/p>\n","category_list":"<a href=\"https:\/\/myratecompass.ca\/blog\/.\/creditcards\/\" rel=\"category tag\">Credit Cards<\/a>","author_info":{"name":"Mohamed Konate","url":"https:\/\/myratecompass.ca\/blog\/author\/mohamedkonate\/"},"comments_num":"0 comments","featured_image_urls_v2":{"full":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",924,614,false],"thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card-150x150.jpg",150,150,true],"medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card-300x200.jpg",300,200,true],"medium_large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card-768x511.jpg",750,499,true],"large":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",750,498,false],"1536x1536":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",924,614,false],"2048x2048":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",924,614,false],"post-thumbnail":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",924,614,false],"post-image-medium":["https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg",376,250,false]},"post_excerpt_stackable_v2":"<p>Table of Contents What is a balance transfer credit card?Why do I need a balance transfer card?How does a balance transfer work?Here&#8217;s how it works:What are the balance transfer fees?What are the benefits of a credit card balance transfer?What are the downsides of a credit card balance transfer?How do I choose the best balance transfer credit card? Reading Time: 4 Min \u00a0A balance transfer credit card could be your solution to paying off your existing debt faster. But is it the right type of credit card for you? We lay it down for you &#8211; the upside and downside of&hellip;<\/p>\n","category_list_v2":"<a href=\"https:\/\/myratecompass.ca\/blog\/.\/creditcards\/\" rel=\"category tag\">Credit Cards<\/a>","author_info_v2":{"name":"Mohamed Konate","url":"https:\/\/myratecompass.ca\/blog\/author\/mohamedkonate\/"},"comments_num_v2":"0 comments","jetpack_featured_media_url":"https:\/\/myratecompass.ca\/blog\/wp-content\/uploads\/2021\/10\/balance-transfer-credit-card.jpg","_links":{"self":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/686","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/comments?post=686"}],"version-history":[{"count":16,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/686\/revisions"}],"predecessor-version":[{"id":6110,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/posts\/686\/revisions\/6110"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/media\/687"}],"wp:attachment":[{"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/media?parent=686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/categories?post=686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/myratecompass.ca\/blog\/wp-json\/wp\/v2\/tags?post=686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}