Skip to content
United Settlement
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
    • Careers
Debt Relief & Settlement Programs
Logo
United Settlement
phone icon 888-574-5454
client icon Client Log In
  • More
    • About Us
    • Proven Results
    • Reviews
    • Contact Us
    • Debt Settlement
    • Debt Consolidation
    • Debt Management
    • Business Debt Relief
    • Credit Card Debt Relief
    • Debt Relief by State
    • FAQs
    • Blog
    • Sitemap
    • Careers
Qualify For Debt Relief
Debt Relief & Settlement Programs
  • Manage Your Debt
    • get-startedGet Started
    • settlementDebt Settlement
    • consolidationDebt Consolidation
    • debt-managmentDebt Management
    • bankruptcyBankruptcy
    • credit-cardCredit Card Debt
    • businessBusiness Debt
    • car-loanAuto Loan Debt
    • student-debtStudent Loan
  • Understand Your Debt
    • credit-cardCredit Card
    • business-2Small Business Debt
    • medicalMedical
    • loansLoans
    • umbrellaCredit Card Relief
    • interest-ratesInterest Rates
    • student-debtStudent Debt
  • Tools & Resources
    • faqFAQs
    • credit-cardCredit Guidance
    • calculatorCalculator
    • call-usContact Us
    • contact-usAbout Us
  • More
    • Debt Settlement
    • Debt Consolidation
    • Reviews
    • FAQs
    • About Us
    • Contact Us
    • Blog
    • Sitemap
    • Debt Relief by State
    • Careers
United Settlement » Blog » What Is a Balance Transfer Credit Card

What Is a Balance Transfer Credit Card

July 5, 2022
Arrows show the path of money from two credit cards being transferred to one 0% APR balance transfer credit card. Red, green and blue cards are on a white background.
A balance transfer card is a credit card that you purchase with the intent of transferring existing credit card debt onto.

The average American owes over $6,000 in credit card debt. Regardless of the overall total balance of your credit cards, if the amount you owe has exceeded your ability to pay, then you can get into a very tricky situation quickly.

This is especially true if the current credit card you own has high-interest rates, penalties, and fees. If that’s the case, then you could end up getting trapped in a debt cycle where you can barely afford the interest and other fees each month. If that happens, then you won’t be paying off your principal balance, which will keep you trapped.

One way out of this type of situation is to invest in a balance transfer credit card. What are balance transfer credit cards, you ask? That’s exactly what we’ll answer in the article below. Learn everything you need to know about these important cards, the benefits of using them, and how to leverage them to get out of debt faster below.

What is a Balance Transfer Card?

So, what is a balance transfer credit card, exactly? A balance transfer card is a credit card that you purchase with the intent of transferring existing credit card debt onto. Any type of credit card can be considered a balance transfer card, but typically borrowers will want to find a card that has minimal interest and fees. Once borrowers select a credit card they want to use, they can transfer debt from an existing card onto the new one.

The goal of this transaction is to swap credit card providers and save money overall.

How Does a Balance Transfer Work?

So, how do you succeed in transferring your credit card debt from one company to a new card? First, when you apply for your balance transfer credit, be sure that you’ll be able to transfer the amount of debt that you need to transfer. Next, do your research to ensure you pick the right card (more on that below).

Once you’ve picked out the right card for you, you’ll need to indicate which balances you want to transfer on your card application. Don’t make the mistake of thinking your transfer will be cost-free, though. In most cases, it will cost you about 3-5% of your entire balance to complete the transfer. It will also take anywhere between one week and one month for the transfer to go through. Until the transfer is complete, it’s still important to make your regular payments.

Once the transfer is complete, your balance will move from your old card to your new one. If you moved your entire balance, then you shouldn’t owe anything on your old card anymore. It’s wise to contact your old card company to verify that you’ve paid everything off with them.

Benefits of a Balance Transfer Credit Card

There are many reasons why consumers utilize balance transfer credit cards. The number one reason why a debtor might make this decision is because they can get a better deal with a different credit card company. If you can find a credit card that offers a better interest rate than the one you’re currently using, then it makes sense to transfer your balance to the lower-interest card.

By doing so, you’ll save money every month on interest payments. What’s more, if you get a promotional zero percent interest deal, then you’ll save a whole lot of money and be able to make more payments on your principal until interest starts to kick in again. This strategy can also help you pay off your debt faster, even if you’re not at zero percent interest.

What’s more, a balance transfer can help you simplify repayment. If you owe a lot of different credit card companies, then it might make sense to consolidate all your debt onto one card. By doing so, you’ll only have one payment instead of many small ones.

How to Use Credit Card Balance Transfers to Your Advantage

If you have a lot of existing credit card debt, then you can use a credit card balance transfer to your advantage. To do so, you’ll first want to ensure that you choose a balance transfer card with the best rates. Once the transfer is complete, take advantage of your new perks by making the maximum payment your budget allows for. This strategy can help you pay off your debt way faster and more efficiently.

How to Choose the Best Credit Card for Balance Transfer

Any new credit card can be a balance transfer card if you use it correctly. When choosing the best card for your needs, you’ll want to look for very specific characteristics like:

  • Cards with introductory 0% interest periods (want to know What is 0% APR?)
  • Cards with low interest rates
  • Cards that do not charge annual or monthly fees
  • Cards that offer a $0 balance transfer fee

While your card doesn’t have to have all of these perks, they’ll all prove beneficial if you can find a card that offers them.

Will You Leverage a Balance Transfer Credit Card This Year?

A balance transfer credit card can provide a lot of benefits if you make your transfer in the right way. Not only can you save a lot of money in interest, fees, and more, but you can also give yourself a better chance of improving your finances with some time and consistency.

If you’ve fallen behind on your credit card payments and you’ve realized you chose a predatory credit card provider, then a transfer credit card might be your best course of action. If that’s not possible, then you still have other debt relief options. Here at United Debt Settlement, we can help you navigate your credit card debt and inform you more about all your options.

See if you qualify for debt relief through one of our awesome programs by filling out our online form today. Our debt experts will get in touch with you about your situation ASAP. If you’d prefer to talk to one of our agents directly, then feel free to call us now at (888) 574-5454.

Gabriel Gorelik, CEO & Co-Founder
Gabriel Gorelik

Gabriel Gorelik paves the way for customer service and operations at United Settlement. He is passionate about numbers and holds a strong belief in helping anyone with their debt. Before United Settlement, Gabriel received his BS in Finance & Economics from Brooklyn College. After graduation, Gabriel went on to build his first financial services company where he managed thousands of accounts for business and consumer clients. He understands the importance of client satisfaction, professionalism, and exceeding expectations.

Share this:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)

Related

Search Blog

Are you in debt? we can help

  • Amount
  • Contact

How much do you owe?

Excellent

Based on 377 reviews.
Overall 4.4 out of 5 stars

View All Reviews

Annette Huggins

March 14

That when it seems like nobody can help United will.

This was a great experience for me. I am just starting but Madelene Gallon made me feel like we were friends for years. She tried to make me feel that she would help me and make sure I got the best deal...

Kiirstin

March 01

Kind and caring

Had been searching for a while for a company I could trust to get me out of crippling debt. Really didn’t think it was possible. Spoke to Ben at United Debt and he assured me that not only was it possible,...

Kiirstin

March 01

Kind and caring

Had been searching for a while for a company I could trust to get me out of crippling debt. Really didn’t think it was possible. Spoke to Ben at United Debt and he assured me that not only was it possible,...

Dylan

February 28

Quick, easy assistance!

I've been working with Ben at United Debt to help me organize and get out of debt for once - I've been dealing with debt for ages and Ben showed me some simple ways to begin dealing with things to keep...

Takota Carrie

February 14

I need help

I really appreciate

JONICA Amber PIRON

December 21

Great!

Renika went above and beyond today to help me. She is wonderful to work with! Thank you again Renika for all of your help today! Happy Holidays to you!

Jayvon

December 20

Paying back

They where great listeners

Shawn abetha

December 14

Everything

Thanks

Robert Phillips

November 23

Do your home eork

Paid several thousand dollars and nothing done. Ended up settling 90%by myself. This is a preatory company. So do your homework. This will never post.

Dm

November 18

Customer service is truly helpful

Renika was so helpful. My account was paid off but I kept receiving notifications. She cleared up the situation.

Jose Rosa

November 16

Great Customer Service

Renika did a wonderful job handling my questions and transactions. She is very patient on the phone and took care of my needs accordingly.

Russ

November 03

Very helpful

Renika did a great job in answering all of my questions in a timely manner. She was polite and friendly. Keep her on the payroll.

Anthony Desoto

October 31

What's Important to me is United Settlement Costumer service !

United Settlement Costumer service is Amazing Everyone is Professional . I am so happy choosing them with my card Debt. thank you all for helping me out .

Ri cky

August 23

That this company has integrity!

A responsive company that keeps it clients up to date and fully informed. I like the fact that I can send them a text and be guaranteed an answer within 24 hrs.

Jerry Bolandis

June 04

Professional and focused on facts and truth not hype. Excellent. We want to know facts.

Great work very professional and great updates. Communication is excellent.

janice head

October 25

trust them

Excellent. Also each time i call there they treat me with respect even though they are probably thinking jerk . You sure have made mess of your life. but they have been taught to smile smile smile. this...

Scott W O'Neill

August 01

Thanks for all your help and negotiations.

Thanks for the update! I have faith in you guys and will continue my payments. Thanks for all your help and negotiations.

Cassandra Robinson

July 30

That A Settlement Was Entered.

I Absolutely Love You All At United Settlements. You All Have Saved My Credit Solutions. I Would Refer Everyone To You Services.

Mildred Yvonne Sherron

July 16

The results of the settlement attempts.

So far, I have found United Settlement more than satisfactory. Very conscientious and very efficient in providing a service in debt settlement. Thank you and all the members of your team who are assisting...

Diana Cardona

July 16

Tough Financial Hard Times During Covid-19

I signed up with United Debt Settlement because of large credit card debts, which had taken a financial toll on my credit. UDS has an outstanding reputation assisting clients like me achieve financial recovery...

  • Contact Us
  • 240 West 37th Street
    Suite 400
    New York, NY 10018
  • (888)-574-5454
  • [email protected]
  • Privacy Policy
  • Terms & Conditions
  • Debt Relief Services
  • Debt Settlement
  • Business Debt Relief
  • Credit Card Help
  • Debt Consolidation
  • Debt Management
  • Student Loan Help
  • Careers
Learn more about debt relief


    • facebook
    • Google Plus
    • Twitter
    • YouTube
    • Instagram
    • Linkedin
    • facebook
    • Tools & Resources
    • Contact Us
    • About Us
    • Blog
    • Debt Calculator
    • Frequently Asked Questions
    • Sitemap
    • Reviews
    • Client Login
    Free Savings Estimate
    Apply Here
    Clients who stay according to debt relief program can realize approximate savings of 50% before fees, or 25% including fees, over 24 to 48 months. All claims are based on enrolled debts. Not all debts are eligible for enrollment. Not all clients complete our program for reasons such as: their ability to save sufficient funds. Estimates based on prior results, which will vary based on specific circumstances. We do not guarantee that your debts will be lowered by a specific amount or percentage or that you will be debt-free within a specific period. We do not assume consumer and/or business debt, provide tax, bankruptcy, accounting, legal or credit repair services/ advice. Our program is not available in all states. Please contact a tax professional to discuss tax consequences of settlement. Please consult with a bankruptcy attorney for more information on bankruptcy. If you have any additional questions please contact us. NMLS ID: 1947026
    Copyright 2023. United Debt Settlement, LLC
     

    Loading Comments...