Advertiser Disclosure

Balance Transfer, Pay Down My Debt

The Fastest Way to Pay Off $10,000 in Credit Card Debt

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Disclosure : By clicking “See Offers” you’ll be directed to our parent company, LendingTree. You may or may not be matched with the specific lender you clicked on, but up to five different lenders based on your creditworthiness.

Before you read on, click here to download our FREE guide to become debt free forever!

Screen Shot 2015-02-03 at 1.30.44 PM

Updated – January 10, 2019

Digging out of credit card debt can feel frustrating, intimidating and ultimately impossible. Fortunately, it doesn’t have to be any of those things if you learn how to take control.

Paying down debt is not only about finding the right financial tools, but also the right psychological ones. You need to understand why you racked up credit card debt in the first place. Perhaps it was a medical emergency or a home repair that needed to be taken care of immediately. Maybe you’d already drained your emergency fund on one piece of bad luck when misfortune struck again. Or maybe you’re struggling with a compulsive shopping problem, so paying down debt will likely result in you accumulating more until the addiction is addressed.

You also need to understand what motivates you to succeed. Do you want to pay down your credit card debt in the absolute fastest amount of time possible that will save more money or do you want to take some little wins along the way to keep yourself motivated?

Here’s a couple strategies consider as you learn the best way to handle credit card debt — and pay it off quickly.

2 common credit card debt repayment strategies

These repayment strategies can help you pay off credit card debt quickly. Keep in mind, you can use these strategies even for non-credit-card debt:

  • Debt avalanche: Focus on paying off the credit card with the highest interest rate first. Then, work your way down. This strategy can save you money on interest and get you out of debt sooner.
  • Debt snowball: Pay off your smallest debts first. Doing so can motivate you to continue making payments as you climb out of debt.

You don’t necessarily need to pick the repayment strategy that gets you out of debt the fastest. After all, if your repayment strategy doesn’t keep you motivated, you may not stick to it.

Using a personal loan or balance transfer credit card

As you seek to repay your debt, you could consider a personal loan or balance transfer credit card with a lower interest rate than on your existing debt. Transferring your debt to one of these financial products could help you reduce long-term interest costs.

But you’ll first need to learn whether or not you’re eligible. Your credit score will play a big role in determining your eligibility for a personal loan or balance transfer card. Use our widget below to figure out if a personal loan or a balance transfer is the best option for you!

What’s the best option for me?

Please enter information below and we’ll provide the best option to consolidate your credit card debt!

If you have a credit score above 640, you have a good chance of qualifying for a personal loan at a much lower interest rate than your credit card debt. With new internet-only personal loan companies, you can shop for loans without hurting your score. In just a few minutes, with a simple online form, you can get matched with multiple lenders. People with excellent credit can see APRs below 10%. But even if your credit isn’t perfect, you might be able to find a good loan to fit your needs.

Not sure what your credit score is? Click here to learn how and where to find out. If you know your credit score needs some work but not sure of what can be done, click here.

If you have a score above 700, you could also qualify for 0% balance transfer offers. We will talk more about balance transfers below but this option is the best way to pay off credit card debt if you’re able to qualify for a 0% APR balance transfer credit card.

A credit score of less than 600 will make it difficult for you to qualify for either option. If you have a credit score less than 640, struggling to make monthly debt payments and would like to explore your options to reduce your debt by up to 50%, then please click our option below to customize a personal debt relief plan.

Custom Debt Relief Plan

Now let’s talk about the financial tools to add to your debt repayment strategy in order to dig out of the hole.

Let’s say you have $10,000 in credit card debt, and are stuck paying 18% interest on it.

You already know that putting as much spare cash as you can toward paying down your debt is the most important thing to do. But once you’ve done that, so what’s next?

Use your good credit to make banks compete and cut your rates

You could save $1,800 a year in interest and lower your monthly payments based on several of the rates available today. That means you could pay it off almost 20% faster.

Here’s how it works.

Option One: Use a Balance Transfer (or Multiple Balance Transfers)


If you trust yourself to open a new credit card but not spend on it, consider a balance transfer. You may be able to cut your rate with a long 0% intro APR. You need to have a good credit score, and you might not get approved for the full amount that you want to transfer.

Your own bank might not give you a lower rate (or only drop it by a few percent), but there are lots of competing banks that may want to steal the business and give you a better rate.

Discover it® Balance Transfer

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® Balance Transfer

Annual fee
$0
Intro Purchase APR
0% for 6 months
Intro BT APR
0% for 18 months
Balance Transfer Fee
3%
Regular APR
14.24% - 25.24% Variable
Rewards Rate
5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate, 1% unlimited cash back on all other purchases - automatically.
Credit required
good-credit
Excellent/Good

MagnifyMoney regularly surveys the market to find the best balance transfer credit cards. If you would like to see what other options exist, beyond Chase and Discover, you can start there.

promo-balancetransfer-halfIt also has tips to make sure you do a balance transfer safely. If you follow them you’ll save thousands on your debt by remaining disciplined.

You might be scared of a balance transfer, but there is no faster way to cut your interest payments than taking advantage of the best 0% or low interest deals banks are offering.

Thanks to recent laws, balance transfers aren’t as sneaky as they used to be, and friendlier for helping you cut your debt.

Sometimes the first bank you deal with won’t give you a big enough credit line to handle all your credit card debt. Maybe you’ll get a $5,000 credit line for a 0% deal, but have $10,000 in debt. That’s okay. In that case, apply for the next best balance transfer deal you see. MagnifyMoney’s list of deals makes it easy to sort them.

Banks are okay with you shopping around for more than one deal.

Option Two: Personal Loan

If you never want to see another credit card again, you should consider a personal loan. You can get prequalified at multiple lenders without hurting your credit score, and find the best deal to pay off your debt faster.

Personal loan interest rates are often about 10-20%, but can sometimes be as low as 5-6% if you have very good credit.

Moving from 18% interest on a credit card to 10% on a personal loan is a good deal for you. You’ll also get one set monthly payment, and pay off the whole thing in 3 to 5 years.

Sometimes this may mean a higher monthly payment than you’re used to, but you’re better off putting your cash toward a higher payment with a lower rate.

And you’ll get out of debt months or years faster by leaving more money to pay down the debt itself. If you want to shop for a personal loan, we recommend starting at LendingTree. With a single online form, dozens of lenders will compete for your business. Only a soft credit pull is completed, so your credit score will not be harmed. People with excellent scores can see low APRs (sometimes below 6%). And people with less than perfect scores still have a good chance of finding a lender to approve them.

LendingTree

SEE OFFERS Secured

on LendingTree’s secure website

LendingTree is our parent company

Advertiser Disclosure

If you don’t want to shop at LendingTree, you can see our list of the best personal loans here.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Brian Karimzad
Brian Karimzad |

Brian Karimzad is a writer at MagnifyMoney. You can email Brian at brian@magnifymoney.com

TAGS: , ,

Advertiser Disclosure

Balance Transfer

How To Do a Balance Transfer With Chase

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Balance transfers can be a great way to finally rid yourself of lingering debt. By transferring debt on a high interest credit card to a card with an introductory interest-free period, you can save money on interest payments and benefit from more time to pay off your debt. In this guide, we’ll provide step-by-step instructions on how to complete a balance transfer with Chase online and over the phone; the whole process should only take a few minutes. Keep in mind, however, that you can’t complete a balance transfer with Chase if your debt is on another Chase card — in that case, check out our full list of balance transfer cards here. Otherwise, if you are considering transferring your credit card balance from a non-Chase card, our recommended Chase card is the Chase Freedom®.

Chase Freedom®

APPLY NOW Secured

on Chase Bank’s secure website

Read Full Review

Chase Freedom®

Regular Purchase APR
17.24 - 25.99% Variable
Intro Purchase APR
0% Intro APR on Purchases for 15 months
Intro BT APR
0% Intro APR on Balance Transfers for 15 months
Annual fee
$0
Rewards Rate
Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases.
Balance Transfer Fee
Either $5 or 3% of the amount of each transfer, whichever is greater
Credit required
good-credit

Excellent/Good

After the instructions, we list some best practices for completing a balance transfer with Chase.

Complete your transfer online

1. Login to your account. Click on “Pay & transfer” then select “Card balance transfers.”

2. Choose an offer. You should see your intro balance transfer offer listed. If your intro offer isn’t listed, contact a Chase rep. If you’ve had your card for a while, there may be no intro BT offer available, but sometimes Chase periodically has new offers.

3. Input the account number of the credit card with your debt and the amount that you want to transfer. The amount you enter must not be greater than $15,000 or greater than your available credit limit (including any fees). If you enter an invalid amount, a box will appear stating the exact maximum amount you’re able to transfer.

4. Next, you’ll review the terms and conditions associated with your offer. Once you read them, check the box below the T&C and click “Agree & continue.”

5. Lastly, review and confirm the balance transfer request is accurate and click “Set up transfer” to request your balance transfer.

 

Complete your transfer by phone

If you rather complete a transfer over the phone, simply call the number on the back of your card to speak to a representative. Have the following information ready:

  • Name on the account with the debt
  • Amount to be transferred

Chase balance transfer rules

  • Request your balance transfer as soon as possible. Chase requires balance transfers to be completed within 60 days from account opening to take advantage of intro offers.
  • Review the terms of your balance transfer offer to verify they’re correct. Make sure you receive the offer you expected and note when the intro period ends.
  • Continue to make payments towards your balance until the balance transfer posts to your account. This may take up to three weeks.
  • Pay each bill on time — late payments may cause Chase to cancel the offer.
  • Keep spending to a minimum so you don’t rack up more debt. Your goal should be to pay off your balance and excessive spending can lead you to fall into more debt.

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Alexandria White
Alexandria White |

Alexandria White is a writer at MagnifyMoney. You can email Alexandria at alexandria@magnifymoney.com

TAGS:

Advertiser Disclosure

Balance Transfer

How to Do a Balance Transfer With Capital One

Editorial Note: The editorial content on this page is not provided or commissioned by any financial institution. Any opinions, analyses, reviews, statements or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by any of these entities prior to publication.

Balance transfers can be a great way to get out of debt if you currently have a balance on a high interest credit card. By transferring your balance to a card with a low or 0% intro APR period, you receive more time to pay off your debt, and can avoid incurring interest charges on your balance — so long as you pay it in full before the intro period ends.

In this guide, we provide step-by-step instructions on how to complete a balance transfer with Capital One online and over the phone. The submission process should only take a few minutes. Before you transfer your balance to a Capital One credit card, beware that there are better balance transfer offers available from other issuers.

While the balance transfer offers from Capital One offer a decent amount of time to pay off debt, they don’t come with the $0 intro balance transfer fee that many cards from other major issuers provide. The fee is typically 3% and can add up if you transfer a large balance. For example, transferring $5,000 in debt will incur a $150 fee, when you can find another card that offers an intro $0 balance transfer fee, saving you $150.

We recommend the following cards that may offer a longer intro period or an intro $0 balance transfer fee:

Discover it® Balance Transfer

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

Read Full Review

Discover it® Balance Transfer

Regular APR
14.24% - 25.24% Variable
Intro Purchase APR
0% for 6 months
Intro BT APR
0% for 18 months
Annual fee
$0
Rewards Rate
5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com and more up to the quarterly maximum, each time you activate, 1% unlimited cash back on all other purchases - automatically.
Balance Transfer Fee
3%
Credit required
good-credit
Excellent/Good

Chase Freedom®

APPLY NOW Secured

on Chase Bank’s secure website

Read Full Review

Chase Freedom®

Regular Purchase APR
17.24 - 25.99% Variable
Intro Purchase APR
0% Intro APR on Purchases for 15 months
Intro BT APR
0% Intro APR on Balance Transfers for 15 months
Annual fee
$0
Rewards Rate
Earn 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter you activate. Enjoy new 5% categories every 3 months. Unlimited 1% cash back on all other purchases.
Balance Transfer Fee
Either $5 or 3% of the amount of each transfer, whichever is greater
Credit required
good-credit
Excellent/Good

>>For more balance transfer cards, check out our roundup.<<

Complete your transfer online

1. In the account dashboard, click on “More Account Services.”

2. Under “Offers and Upgrades,” choose “Transfer a Balance.”

3. Select a BT offer.

The above offers and/or promotions may have since changed, expired, or are no longer available.

4. If you have two-factor authentication, this comes up.

5. Choose how you want to do your BT.

The above offers and/or promotions may have since changed, expired, or are no longer available.

6. Enter the credit card number from the card with your debt and the amount you want to transfer. It’s okay to leave the credit available number.

7. When you enter the card info, it asks you if the credit card issuer is correct (see Amex note in the top right), and when you enter the transfer amount, it shows you the fee. Click “View the Terms & Conditions.”

8. Read the T&C and then click “Accept Terms & Conditions.”

9. Then review the offer and click “Submit Request.”

The above offers and/or promotions may have since changed, expired, or are no longer available.

Complete your transfer by phone

If you rather complete a transfer over the phone, simply call the number on the back of your card to speak to a representative. Have the following information ready:

  • Name on the account with the debt
  • Amount to be transferred

Capital One balance transfer rules

  • Request your balance transfer as soon as possible. Unlike some other cards that require balances to be transferred within 60 days of account opening to qualify for intro offers, Capital One allows you to transfer a balance any time during the intro period. But the longer you wait, the less time you have to take advantage of the offer.
  • Review the terms of your balance transfer offer to verify they’re correct. Make sure you receive the offer you expected and note when the intro period ends.
  • Continue to make payments toward your balance until the balance transfer posts to your account. This may take up to 14 days.
  • Pay each bill on time since late payments may cause Capital One to cancel the offer.
  • Keep spending to a minimum so you don’t rack up more debt. Your goal should be to pay off your balance and excessive spending can lead you to fall into more debt.

Capital One balance transfer cards

If you haven’t applied for a Capital One balance transfer card yet, you might want to consider balance transfer cards from other issuers that offer intro $0 balance transfer fees. However, if you decide to open a Capital One card offering an intro 0% APR period for balance transfers, here are our top picks:

Capital One® Quicksilver® Cash Rewards Credit Card

APPLY NOW Secured

on Capital One’s secure website

Capital One® Quicksilver® Cash Rewards Credit Card

Regular Purchase APR
16.24% - 26.24% (Variable)
Intro Purchase APR
0% intro on purchases for 15 months
Intro BT APR
0% intro on balance transfers for 15 months
Annual fee
$0
Rewards Rate
1.5% Cash Back on every purchase, every day
Balance Transfer Fee
3%

Capital One® SavorOne℠ Cash Rewards Credit Card

APPLY NOW Secured

on Capital One’s secure website

Capital One® SavorOne℠ Cash Rewards Credit Card

Regular Purchase APR
16.24% - 26.24% (Variable)
Intro Purchase APR
0% intro on purchases for 15 months
Intro BT APR
0% intro on balance transfers for 15 months
Annual fee
$0
Rewards Rate
3% Cash Back on dining; 3% Cash Back on entertainment; 2% Cash Back at grocery stores; 1% Cash Back on all other purchases
Balance Transfer Fee
3%

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Alexandria White
Alexandria White |

Alexandria White is a writer at MagnifyMoney. You can email Alexandria at alexandria@magnifymoney.com

TAGS: