Credit Card Balance Transfers 101

Key insights:

• A credit card Balance Transfer allows you to move a balance from a high-interest card to another credit card, often taking advantage of a low introductory APR
• Transferring a balance is typically a simple process, but it may take some time, especially if you’re transferring balances between two different banks
• You may be able to transfer a balance with an existing Citi card, or apply to get a low intro APR on a new Citi credit card, like the Citi Double Cash^® Card, Citi Simplicity^® Card, Citi^® Diamond Preferred^® Card or Citi Strata^℠ Card

If you’re looking to consolidate credit card balances or other outstanding debt, a Balance Transfer may help. Transferring balances to a single credit card can simplify your monthly payments and potentially save you money on interest. Read on for the most common Balance Transfer questions and their answers.

What is a credit card Balance Transfer?

A credit card Balance Transfer allows you to move existing credit card or loan balances to a separate credit card account. 

Balance Transfer cards may offer a low introductory or promotional interest rate for a limited time. Remember, these introductory or promotional rates are temporary. If the balance is not paid in full by the time the introductory or promotional rate expires, the unpaid portion of the balance will begin to accrue interest charges at the standard annual percentage rate APR (or annual percentage rate) for Balance Transfers on the account.

You should also note that if you transfer a balance, interest may still be charged on your purchases unless you pay your entire balance (including any Balance Transfers) by the due date each month. However, depending on the offer, you could also have a low intro or promo APR on purchases.

What is a Balance Transfer fee?

There is typically a fee when you transfer your balance from one card to another. Most credit card issuers charge this Balance Transfer fee, even if you have a low introductory or promotional APR offer for Balance Transfers on your credit card. The Balance Transfer fee is usually a certain percentage of the Balance Transferred or a flat fee, whichever is higher.

What is a Balance Transfer APR?

A Balance Transfer APR is the interest rate your credit card issuer charges on balances transferred to that card. As mentioned above, credit card issuers may offer Balance Transfer cards with a low introductory or promotional APR on Balance Transfers for a limited time. This Balance Transfer APR may help you repay your transferred balance faster since you can save on interest charges during the introductory or promotional period.

How long does a Balance Transfer promotional APR last?

Promotional APRs must last for at least 6 months but are often offered for longer. The length depends on the card issuer’s offer. Citi offers Balance Transfer cards with low intro APRs up to 21 months.

How long does a credit card Balance Transfer take?

The amount of time it takes for a Balance Transfer to be completed depends on whether you're transferring a balance to a new or existing account, as well as which credit card companies you’re working with. Generally, it can take anywhere from 2 to 21 days for a Balance Transfer to post to your account, depending on if it is a new or existing card, and your preferred disbursement method.  Additionally, with some credit card companies, it may take longer.

Can I do a Balance Transfer with an existing Citi credit card?

Yes, in some cases, you may be able to complete a Balance Transfer using your existing Citi credit card. Citi may provide Balance Transfer offers directly on your account, allowing you to move balances from non-Citi accounts without applying for a new card.

These offers use your available credit and may include a promotional APR for a limited time, depending on the terms of your offer. Note, generally, Balance Transfers cannot be made between credit cards from the same issuer.

What are the benefits of using an existing Citi card for a Balance Transfer?

Using your current Citi credit card for a Balance Transfer may help you:

• Save on interest with a lower promotional APR
• Consolidate multiple balances into one monthly payment
• Avoid opening a new account
• Use your existing credit without a new credit inquiry

These features can make it easier to organize your payments and focus on reducing debt.

Can I still use my credit card after transferring the balance to another card?

Yes, you can keep using your old credit card after transferring the balance to a new credit card. Just remember that if you keep using your old card, or if you didn’t transfer your entire balance, you’ll need to continue making payments. Any balance remaining on the old card will accrue interest until you pay it off. 

How do I transfer credit card balances to another card?

To transfer a balance, you generally need to follow these steps:

Find a Balance Transfer card

The goal of a Balance Transfer is to move from a card with a high interest rate to one with a lower interest rate. Take note of your current interest rate before you pre-qualify for a credit card. Citi offers 4 cards that support Balance Transfers:

• Citi Double Cash^® Card: Get a low intro APR for 18 months on Balance Transfers from date of account opening
• Citi Simplicity^® Card: Get our lowest intro APR on purchases and Balance Transfers for 18 months.
• Citi^® Diamond Preferred^® Card: Get our lowest intro rate on Balance Transfers for 21 months and purchases for 12 months
• Citi Strata^℠ Card: Get a low intro APR for 15 months on Balance Transfers from date of account opening

Request a Balance Transfer

Most financial institutions offering Balance Transfers will allow you to enroll in them through their online or mobile platforms. Otherwise, you may need to contact the credit card company directly and provide them with the name of the lender, the account information, and the amount you want to transfer. How much you transfer depends on your available credit and the terms and conditions of your credit card. Your Balance Transfer limit may be lower than the credit limit on your account. Some banks also provide Balance Transfer checks which allow you to leverage the offer whenever you would like to, provided the offer on the check hasn’t expired. 

If you're approved for the transfer, the credit card company you're transferring the balance to will either contact the lender and pay it off or allow Balance Transfer funds to be sent directly to you, either through an ACH payment or a Direct Check. However, receiving funds directly may not be available for every Balance Transfer.

Wait for your transfer approval

It may take some time for your Balance Transfer to be approved. In the meantime, you will have to continue making whatever payments are due on your old card or loan.

Start to pay off your balance

After the transfer is complete, begin making payments on the transferred balance. Make sure you understand the terms and conditions of the Balance Transfer offer. Remember, transferring a balance doesn't close your other account: it only pays the portion of the Balance Transferred. Don’t neglect remaining balances on the original card or loan and remember to make payments on both cards if you’ve only transferred a portion of your original balance.

What happens if a Balance Transfer is denied?

Reach out to the credit card issuer to find out why the Balance Transfer failed. There are a few reasons why a Balance Transfer may be denied. For example, your Balance Transfer may be denied if your transfer exceeds your available credit or if the account with the balance you want to transfer the balance from and your Balance Transfer credit card are from the same lender. If your available credit is the problem, you may be able to transfer a lower amount. Your issuer may also be able to make recommendations to help you successfully carry out a Balance Transfer in the future.

How do I transfer money from a credit card to my bank account?

If permitted by 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—or an ACH payment for some Balance Transfers.

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.

Will I earn points, miles or cash back on a Balance Transfer?

In general, Balance Transfers are not eligible for cash back, points, miles or other rewards. You should review the offer's terms and conditions for more information.

What debts can I pay with a Balance Transfer?

Debts you can generally pay with a Balance Transfer may include:

• Other credit card balances, including store credit cards
• Personal loans
• Payday loans and title loans
• Utility bills and cell phone bills

What if my Balance Transfer limit isn't high enough?

Balance Transfers that are higher than the limit set for the offer, which may be your credit card limit, typically are not approved. If you want to request a Balance Transfer for more than your approved limit, contact your credit card company to see if there’s another course of action that fits your needs. You may also be able to transfer part of a balance.

What happens if I don't pay off the balance by the end of the promotional period?

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 as well as any 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.

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.