I’ve previously discussed the best balance transfer cards that you can apply for to help you build credit.
The great thing about balance transfers is that they can be done either on the personal side or the business side.
But while you may have heard of balance transfers, you might not know what they actually entail or how to actually do one.
What is a Balance Transfer for Credit Stacking?
What exactly is a balance transfer?
When we talk about balance transfers, we’re talking about the process where you’re transferring an outstanding debt from one credit card to another.
In most cases, this means moving your balance from one bank’s credit card to another; this is the only way to do a balance transfer.
Unfortunately, you can’t do a balance transfer within the same bank.
So why would you want to balance transfer in the first place?
There’s actually a number of reasons to transfer your balance to another card, but the most popular reason is to get access to 0% interest.
I’ve talked about how having to pay interest is just a big scam, as that’s the bank taking your money for themselves.
And that’s why moving to a 0% interest card is so valuable, as it means you can have at minimum 6 months or a maximum of 24 months before you start paying interest.
Above that, you save a good deal of money within the first year, without the fees from paying interest.
Another reason to do a balance transfer is to get more or better rewards from cards, especially when using business cards over personal cards.
Now that you understand what a balance transfer is and why you would want to do it, let’s look at how to actually transfer a balance.
How to do a Balance Transfer the Jack McColl Way
Transferring your balance from one card to another is pretty straight forward.
Most banks will allow you to transfer a balance, usually with a small fee, to another bank’s credit card.
As mentioned, when you’re considering doing a balance transfer, you’ll want to look for cards that have 0% interest for several months if you can.
I’ve talked about cards you should consider, including:
US Bank Visa Platinum
American Express Blue Business Cash
Along with 0% interest, also check for available rewards that will match your lifestyle or business, so travel, cash back, or so on.
Once you’ve chosen a bank, just apply for an account; it’s always better to apply for a personal account first, so you can establish a relationship with that bank.
Establishing a bank relationship can help with getting larger limits and better options when it comes to credit cards.
When you’re able to get your new credit card, you can request to do a balance transfer from the card you want.
You can also transfer the balance from the originating back to the new one, again paying a small fee for the transfer.
Once done, you should see your balance amount on the new card; remember, even with the new balance, you still have to pay down the new card.
Doing a balance transfer can help to reduce your interest payments, by putting them at a lower rate and giving you more time to pay down your balance.
You also get better or more reward points, which can give you cash back, travel points, shopping points, etc.