Credit card balance transfers give consumers the opportunity to consolidate their high-interest debts at a much lower interest rate. At the same time, balance transfer cards allow you to reduce the number of bills you pay each month, and you can even switch from paying multiple credit card bills to just one.
However, performing a balance transfer may not be all that helpful if you can only transfer a small portion of your outstanding debts. If you’re considering transferring your balance but are wondering if limits or limits might make it harder for you to reach your goal, read on to find out how much debt you can transfer to most credit cards and other rules that may apply.
How much debt can be transferred to a credit card?
Generally speaking, you can transfer as many existing balances as you want, up to the new card’s credit limit, as long as the card issuer has no balance transfer limits. For example, if you have a $30,000 limit on a new balance transfer card you applied for, you can usually transfer up to $30,000 in debt to that card right away.
However, there are some card issuers, including Chase, that set limits on the amount of debt you can transfer to your cards. In fact, the fine print on the Chase website spells it out very clearly:
“Balance transfer requests made online and/or with a customer service representative cannot exceed $15,000 in any 30-day period.”
In any case, it is important to know that there is no guarantee that you will receive as high a credit limit as you would like on your balance transfer card. Your credit limit will be set based on a variety of factors, some of which you cannot control in the short term.
For example, credit card issuers usually set your credit limit based on your income, your credit score, and your credit history—all factors that you can’t just change overnight.
How much debt can be transferred to a credit card?
The type of debt you can transfer to a balance transfer card depends on the issuer. For example, Chase only allows customers to transfer debts from other credit cards, while Capital One allows its cardholders to also transfer personal, student and auto loan debts.
However, cardholders who receive balance transfer checks in the mail can usually use them as they see fit, whether they decide to pay off the balance of the loan or write themselves a check to access cash.
Also, keep in mind that you usually cannot transfer debts from one card to another from the same issuer. For example, if you have a credit card debt to Chase, you will have to choose another credit card to transfer the balance from an issuer such as Capital One, Citi, or Wells Fargo.
What is the maximum credit card limit?
While credit card issuers don’t usually advertise their credit card limits, it’s possible to get a limit up to $100,000 with a luxury credit card. Keep in mind that high credit limits are for consumers with little debt, excellent credit, a near-perfect payment history, and a large disposable income.
High credit card limits are also associated with high rates because you need to maintain strict discipline not to overuse them.
The best cards for transferring balances with a high limit
Remember, the credit limit assigned to you will depend on a variety of factors such as your income, employment status, credit score, and even your rent. However, the balance transfer cards below tend to offer the highest limits for applicants who can qualify:
Citi Dual Cash Card
The Citi® Double Cash Card is one option that can give you a high credit limit, along with other benefits such as 18 months of 0% starting APR on balance transfers (followed by floating interest rates from 14.74 up to 24.74 percent) an introductory 3 percent balance transfer fee (or $5, whichever is higher). Note. You must complete the balance transfer within the first four months of opening the account. You also earn 1% cashback on purchases when you make a purchase, and then another 1% cashback when you pay with a card, up to a total of 2% cashback on all purchases. There are no limits on cashback and annual commission.
Citi Diamond Preferred Card
Like Citi Double Cash, the Citi® Diamond Preferred® Card offers initial, interest-free funding for balance transfers. New cardholders can qualify for 21 months of 0% starting APR on balance transfers (from 14.49% to 24.49% floating APR thereafter) with a 5% balance transfer fee (or $5, whichever is higher). At the same time, cardholders can enjoy a 12-month zero annual interest rate on new purchases, followed by a variable annual interest rate of 14.49 to 24.49 percent. Again, you must complete the balance transfer within four months of opening the account.
BankAmericard credit card
The BankAmericard® Credit Card comes standard with 18 billing cycles with 0 percent APR funding for both new purchases and balance transfers (followed by a variable APR from 13.74 to 23.74 percent), with a balance transfer fee 3 percent (or $10, whichever is greater). more). Just note that you must transfer your balance within 60 days of opening an account in order to qualify for the promotional rate. The card does not offer any rewards, but it does not charge an annual fee.
Wells Fargo reflection card
Also consider the Wells Fargo Reflect℠ card, which is one of the newest balance transfer credit cards to hit the credit card market. This gives you automatic 18 months with 0% interest on purchases and balance transfers. However, you can qualify for an additional three months at zero interest if you make payments on time during the introductory period and the renewal period. This means that you can end up with 0 percent APR on purchases and balance transfers for up to 21 months, and then the standard variable annual interest rate from 13.74 to 25.74 percent.
There is no annual fee, but you need to transfer balances within 120 days of opening an account to qualify for the starting rate. A balance transfer fee of 3 percent ($5 minimum) also applies to balances transferred within the first 120 days.
Watch out for balance transfer fees
Perhaps the biggest disadvantage of credit cards with a high balance transfer limit is the balance transfer fee. Most cards have a 3 percent fee, and many can go as high as 5 percent, plus they have a minimum fee amount (usually $5 or $10).
This fee is added to your new balance and you must ensure that you have accumulated enough interest to make it worth it. For example, if you transfer $50,000 to a high limit balance transfer card with a 3 percent fee, expect $1,500 to be added to your new balance when you start redeeming.
bottom line
Getting multiple credit card statements every month is never very fun, and that’s especially true if you’re paying high interest rates on all your debts. By opening a credit card for a high-limit balance transfer, you can consolidate your balances, pay less interest, and possibly even improve your credit score, all at the same time.
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