Completing a balance transfer is a lot easier than you think, as you can usually submit the request via your credit card application, but things may not always go as planned. That’s because you aren’t guaranteed to be approved for any amount, and you won’t know that amount until you actually apply and get approved. So what happens if you’re approved for the card, but your transfer amount isn’t as high as you expected? Here’s what you need to know. [This article was first published on The Simple Dollar in 2020. It was updated in February 2022.] Also: The best credit cards for good credit: Reap the rewards Keep in mind if you already transferred part of your balance to the new card, you will likely have to make a second balance transfer, which means you’ll incur a second balance transfer fee of 3% to 5% of the total amount transferred. If you can get the balance on your new card taken care of, you might even be able to transfer what’s left on the old credit card – although you’ll want to watch out for time limits such as 45 or 90 days for qualifying balance transfers to get the 0% intro APR or a lower balance transfer fee. It should be noted that a personal loan is only a good solution if the interest you’re paying on the loan is less than the interest your credit card is charging. If the loan’s interest is higher than your credit card’s, it’s not worth consolidating your debt with a personal loan because you’ll be paying more interest in the long run. Something else to keep in mind is since you were already approved for a balance transfer credit card, you may want to consider transferring the approved limit to that card then use a personal loan to pay off the remaining balance. That way, you’ll pay no interest on the transferred amount and less in interest on the loan because the balance will be smaller. Also: The most exclusive credit cards During this time, make sure to not only continue to pay your high-interest and balance transfer credit cards on time but also track your credit reports and scores so you can keep an eye on where your credit sits and whether the new inquiries have caused any damage. Once you feel like it’s the right time to apply, be sure to pick the right balance transfer credit card for your needs.
