Must read: What you could save by making a second balance transfer
Let’s say you have a debt of $14,000, which you move to a new card that doesn’t charge a balance transfer fee and has a 0% intro APR on balance transfers for six months. During the promotional period, you’re able to pay the debt down to $11,000. Now that it’s over, you’ll start paying a 19% variable APR.
Here’s how much you could save by transferring the balance again, assuming:
- A 3% balance transfer fee
- You’re able to pay the debt down to $6,000 during the intro period
The balance transfer fee brings the total debt to $11,330. That means it would take $5,330 to pay it down to $6,000.
Had you paid interest on the previous card during those six months, it would’ve run about $900. Meaning once you account for the balance transfer fee, the second transfer will have saved you about $570.
Note: Some credit cards have no balance transfer fee.
I have 2 transfers that were done at separate times on the same card with 0 APR. For example, $1,798 and APR expires 8/19/19 and then I have $2,300 and 0 APR expires 1/1/2020, so what does this mean? I need to have only 2300 remaining by 8/19/19 to confirm that the first one is paid down, then I can work on that second one? I am so confused about the dates and what will accrue interest on those amounts. I don’t make purchases then.
Hi Mia,
Thank you for getting in touch with Finder.
That is correct. You may leave a balance of $2,300 since that amount’s balance transfer promotional period will expire on 1/1/2020.
I hope this helps.
Thank you and have a wonderful day!
Cheers,
Jeni
I have already done a balance transfer from my credit card to another 0% interest credit card. I’m wondering if I can move more of my balance from the original card onto a second 0% card.
Hello John,
Thank you for your comment.
For as long as you meet the eligibility criteria, yes, you can move more of your balance to the second 0% balance transfer credit card. Usually, 0% balance transfer credit cards are introductory offer and you usually qualify when you do the transfer at the time of application.
Before applying, please ensure that you meet all the eligibility criteria and read through the details of the needed requirements as well as the relevant Product Disclosure Statements/Terms and Conditions when comparing your options before making a decision on whether it is right for you.
Regards,
Jhezelyn