How to transfer your debt to a new direct debit credit card and referral APR 0% helps you save money when paying your outstanding balance. But what if you have large outstanding balances? Can you transfer them to a new credit card?
It depends. The amount you can transfer depends on the credit limit of your new card. This limit is determined by your card issuer considering your credit history and other factors. There is no way to know for sure what the card limit you will receive will be until it is approved. However, there are some things you can do to get the highest possible limit. This allows you to get the most out of your balance transfer.
Here are some steps you can take to set up a successful balance transfer and ensure you get the right balance transfer limits to manage your debt.
- 1 How much debt Is it transferable?
- 2 How many credit cards Can I merge my accounts?
- 3 High credit limit How to get
- 4 High limit balance Transfer Credit Cards
- 5 Tips for Getting Approved for a Credit Line Increase
- 6 Balance transfer card Alternatives
- 7 Final Results
How much debt Is it transferable?
The exact amount you can transfer depends on your card and your credit limit. Credit card companies usually determine how much debt you can transfer depending on your credit limit.
Many card issuers are generous and allow cardholders to transfer the entire credit limit, but in some cases the transfer limit is limited to 75% of the total credit limit. Some card issuers also have internal rules regarding balance transfers. For example, Chase only allows a cardholder to transfer up to $15,000 to her card in 30 days.
It is important to note that balance transfer fees are often considered part of the transferable balance, so the “actual” limit will be slightly lower than expected. Read your credit card agreement or consult with your card issuer to determine if and how balance transfer fees affect your limits.
How many credit cards Can I merge my accounts?
If you're juggling debt on multiple credit cards, you may be able to transfer each debt to a new balance transfer card. Do not try to open the transfer card. Doing so can result in multiple scrutiny on your credit report and hurt your credit score.
Also, generally speaking, please note that balances cannot be transferred between different cards of the same issuer. For example, you cannot transfer your debt from one Citi Credit Card to another Citi Card.
The last rule to know has to do with the types of debt that can be transferred. In addition to credit card balances, most major card issuers allow you to transfer a variety of loan balances, such as student loans, car loans, and even home equity loans. However, some issuers, such as American Express and Chase, reserve balance transfers only for credit card debt.
High credit limit How to get
Card issuers consider multiple factors when determining the amount of credit you can qualify for, but income is one of the biggest.
Luckily, his CARD Act of 2009 made it legal to use household income when applying for credit. Rather than a card just for you, this means you can list your income and the income of other family members, such as your spouse, to qualify for a higher credit limit.
High limit balance Transfer Credit Cards
If you are trying to transfer a large balance, you may have higher credit limits (although this aspect of the card is not always immediately visible by the issuer) and the introduction of APRs. Look for credit cards with extended terms to 0%.
Anything between $5,000 and $10,000 or more is generally considered a high credit limit. The highest credit limits are most commonly found on premium cards such as the Chase Sapphire Reserve®. Expect a minimum credit limit of approximately $500 for a typical balance transfer credit card.
Here are some of our top picks for high limit balance transfer cards.
Discover it® Cashback includes 0% introductory APR on both purchases and balance transfers for 15 months (15.74% to 26.74% thereafter) APR) and a 3% introductory balance transfer fee. After the introductory period, future transfers will raise the fee to 5% (see conditions).
While not explicitly stated by the issuer, Discover it Cashback has a rumored credit limit of over $10,000. According to Discover, if you're unsatisfied with the credit limit you've received, ask for a limit increase after a few months of proper card usage.
Outside of the introductory offer, you can earn 5% cash back when you activate the rotating category quarterly (up to $1,500 on purchases, then 1% cash back) and 1% cash back on all other purchases. Annual membership fee is also free.
Wells Fargo Reflect Card
The Wells Fargo Reflect℠ Card offers 18 months of no annual fee on eligible balance transfers and account opening purchases. Offers a referral APR of 0% (and thereafter a variable APR of 17.24% to 29.24%). This introductory period is extended for up to 21 months if the cardholder makes timely minimum payments during the introductory period. Up to 21 months is one of the longest offers on the market when it comes to competing balance transfer credit cards.
For the balance transfer fee, you will pay 3% of the referral fee. 5% (minimum $5) after the first 120 days.
Unfortunately, you can't earn rewards with Wells Fargo Reflect, but the card comes with perks like cell phone protection (up to $600 per charge, up to 2 charges per year) and Visa Traditional benefits.
United States. Bank Visa Platinum Card
The U.S. Bank Visa® Platinum Card should also be added to the list due to the length of the initial benefits. With this balance transfer card, you can enjoy 0% initial APR on purchases and balance transfers (done in the first 60 days) for 18 billing cycles. There is no annual fee, but a 3% balance transfer fee (minimum $5) applies and balance transfers must be made within the first 60 days.
Similar to Wells Fargo Reflect, you cannot earn rewards with this card. However, you can take advantage of perks like cell phone protection (up to $600 per charge, up to twice a year) and access the card's Pay Over Time feature.
Tips for Getting Approved for a Credit Line Increase
Improving your credit score can motivate issuers to increase your credit limit. A good credit history gives issuers more confidence to repay what they borrow and allows them to lower their credit limits. The following tips will help guide you through the process of increasing your credit limit.
Contact your credit card issuer
It may be as simple as asking. Many credit card issuers allow cardholders to request a credit limit increase online. You can also call the number on the back of your card and ask a customer service representative if you are eligible for a credit limit increase.In most cases, you will need to update your income information. This is a good time to think about why you need a higher line of credit in the first place. If you feel that you have sufficient financial security, for example because you recently received a raise at work, a higher credit limit may be a smart financial move.
Look for auto raise
Some credit card issuers automatically increase credit limits for cardholders after the cardholder has established a history of responsible behavior. If you pay your bills on time each month and manage your finances responsibly, your credit card company may increase your credit limit without prompting. This can also happen if you report an increase in income. However, in some cases, credit card issuers do this to increase customer retention and encourage responsible cardholders to pay more monthly.
Apply for a New Card
If you have good credit and a history of making timely payments, a new credit card with increased limits may be approved. may occur. This is especially important when considering balance transfer credit cards. Because this will allow you to transfer more debt. Your inquiry will be recorded on your credit report. This type of inquiry can affect your credit score by temporarily lowering it.
You can use Bankrate's CardMatch tool to see which cards are prequalified (without impacting your credit score). This will give you an idea of the current situation without having to formally apply.
Balance transfer card Alternatives
It is important to consider other debt relief options before initiating a balance transfer. Here are some of the best alternatives to know when you're struggling with a lot of debt.
- Credit Counseling: Credit counseling services provide coaching and help you set up debt consolidation.
- Debt Consolidation Loans: Personal loans come with competitive fixed interest rates, fixed monthly payments, and knowing exactly when you will be debt free It comes with a set repayment schedule. This is a good option if you have a significant amount of debt that you would like to consolidate.
- Snowball Debt: In snowball debt, pay as much money as possible. Pay the smallest balance first while minimizing the remaining payments. Over time, pay off your smallest debt and “snowball” the payments you were making toward the next smallest debt.
- Debt Avalanche: The Debt Avalanche method, however, should focus on paying off the highest interest debt first. The less interest you pay, the more you can invest in your principal.
Your balance transfer limit depends on factors such as: Income, credit score, current debt amount. Your best bet is to make sure your credit score is in good standing before applying and look for balance transfer credit cards with long referral offers.
Some research. And by planning, hopefully necessary card transfer limits.