How to Transfer a Credit Card to a Lower Interest Card

Many people use credit cards for daily purchases, such as for: groceries, gasoline or entertainment. Credit card interest rates can vary considerably; some will have a 0 percent annual percentage rate, and others can 25 percent or higher. In order to maximize your ability to pay your credit cards down and eliminate debt, it may be in your best interest to transfer a credit card balance to a lower interest credit card so that you do not have to pay significant finance charges.

Instructions

1

Search for a low interest rate credit card. In some instances, it may be one of your existing credit cards offering you a promotional interest rate, or you may apply for a new credit card with a promotional interest rate. Some credit card companies offer rates such as 0 percent on balance transfers for 12 months if you apply and are qualified for one of their cards.

2

Read the terms and conditions of the balance transfer, as there may be hidden fees or penalties. Check for information about whether there is an annual fee, what the interest rate will become at the end of the promotional period and whether there is a fee for transferring a balance.

3

Complete and submit a balance transfer application. The balance transfer application may be part of a new credit card application or may be completed online if you have set up a personal account on the credit card company's website. The application generally will ask for the account number of the credit card from which you wish to transfer your balance, the amount of your balance that you wish to transfer, your name, your address, your phone number and your Social Security number.

4

Continue paying your previous credit card until the balance transfer is complete. After you have completed the balance transfer application, you should continue to pay your old credit card bill until you have received confirmation that the balance has been transferred. If you fail to pay a credit card bill while there is an existing balance and before the transfer is complete, you may have to pay late fees and your credit score could be adversely affected.