How does a balance transfer work, and should you do it? Now whatever I tell you in my video its because I’ve done it. I had a balance transfer from this Discover to Chase Unlimited. And I’ll let you know why later in the video. ( it was because I wanted more money to invest my business ) Now in this video I'm going to break down, how A balance transfer works and how it can save you thousands of dollars and even improve your credit score. And yes I’ll also be breaking down the fees and how to actually do it for free, but not just that I'm going to give you a way to go 2+ years without having to pay interest. So make sure you stick around till the end of this video.
What does Balance Transfer:
A balance transfer is simply taking the money you owe one credit card and transferring it to another. Either to avoid interest or to max out certain bonuses.
Tommy What's the difference between a Balance Transfer and Debt Consolidation:
It depends, usually, you can save more money by not doing either. Unless you have a special promotion. Example 15 month 0% apr on a balance transfer. Then that’s definitely more attractive than a loan consolidation. Loan Consolidation are lower interest but could results in higher interest over time, depending on how long the debt will last.
How does Balance transfer work?
Call discover or chase Customer service and ask how it works in full.
1. How does balance transfer work?
The transfer of debt to the credit card.
2. What are the benefits?
Lower apr and sometimes promotions.
3. Can I do a balance transfer to any of my cards that accept it?
Yeah, surprised me too.
4. Can I do a balance transfer to my friends card?
Yup.
5. Is there a limit on how many I can do, an example I max out my limit buying Starbucks, and now I want to do a balance transfer, for the 4th time is that okay?
Nope, as long as its available.
6. Are balance transfer free or do I have to pay twice, to you and also the other card?
Pay the person receiving the transfer.
7. How do you guys figure out how much to charge as a fee
Its, fixed.
8. What if I have a card with 500 dollar limit and I want to transfer 10k to it, is that possible?
Nope, it can't go above your credit line.
9. Will it affect my credit score?
Nope, and a credit line increase is a soft check.
10. When I do a balance transfer, does the interest rate change and can I reverse if it's higher?
Yeah, if they just got it, after a while you cant reverse it.
12. Funny: Call in and ask for an APR increase ( to practice self-control)
Lol no.
Big Questions?
When should I do a balance transfer?
- Say you got a cc for the first time and now you owe 1500$, and you can't pay it, and you cant return all the food or the iPhone, what do you do carry balance or transfer.
- Normal balance transfer without a promotion, not a good idea unless you’ll make more money.
Why credit cards allow it? Why not keep you locked in?
- Because when you bring the balance to them, now they can have the chance of charging you interest and 24-35% is higher than 5% for the balance transfer
Balance transfers are lucrative and can even help you improve your credit score, but that’s another topic for another video. Heres what I recommend.
- If you have a high balance, you can't pay and need more time, get a balance transfer and then pay it as fast as possible
- If you have a business and need cash, and you maxed out one card, then get a balance transfer. (risky)
- I might get another balance transfer, and when I do I’ll make sure to post a video about it
Bonus:
*Comment down below if you want a video on video on the top 5 or 7 best free balance transfer cards with no fees, let me know. *
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