Is a Balance Transfer
Right for You?

Balance Transfer Basics

A balance transfer is a way of moving credit card balances from one account to another. This can be done by transferring outstanding balances on your higher interest credit cards to a lower rate card you already have. You can also apply for a new credit card offering an introductory rate, such as 0%, but keep in mind this could impact your credit score, especially if you’re not actually closing those other accounts. Here’s how it works:

1. Research different credit card options for balance transfers and apply for the one that best fits your financial situation. To complete a balance transfer, you will need a credit card from a different issuer. First look at other cards you already have to see if one has more favorable terms.  Typically, this means a lower APR. However, it’s important to evaluate all of the terms. If you are considering applying for a new card that offers an introductory or promotional rate for balance transfers, be sure to read the fine print. For example, how long is the promotional period, and what happens when it ends? Consider the standard APR after the promotion, and whether or not you will have to pay fees or back interest on any unpaid balances.

2. Once approved begin the balance transfer. Your credit card issuer will need information about the balance you wish to transfer, such as the lender, the amount, and other necessary information. If you’re transferring to a DCU Visa® Platinum Credit Card, you can initiate the transfer via Online Banking or Mobile Banking. From the Account Manager tab, select Balance Transfer and simply enter the card number and amount being paid off to submit the request.

3. Wait for the transfer to complete. Most transfers are completed in a few business days. Others may take several weeks, depending on how your previous credit card issuer handles payment processing. The balance of your old account may appear in your new account before it has been paid off, so be sure to continue making any payments that are due to your old account until you see it has been paid off.

4. Make payments. At this point, all that’s left is making payments on the new account. Be sure you have a plan for how you’ll make payments before you start the transfer process.

Ready to Tackle Debt?

Explore DCU’s credit card offerings with zero fees for balance transfers or cash advances. If you’re looking for extra help with managing debt, DCU members can speak with a credit counselor from our BALANCE program at no extra cost.