How Many Balance Transfers Can You Do On One Card? (2024)

Life can throw unexpected curveballs at anyone, regardless of their financial circ*mstances. Medical bills, car repairs or home maintenance can swiftly accumulate and lead to high credit card balances. Encountering these financial challenges is normal. The key is to make sure you deal with your debt in a responsible and organized way.

Credit card companies often charge steep interest rates, making it difficult to make headway in paying down your balances. These high rates can feel like a weight around your neck—a feeling many people know. For middle- and lower-income individuals, these rates can be particularly burdensome.

Balance transfers step in as a means to ease this burden. They allow you to move your debt to a new card with lower or even 0% introductory interest rates. This promotional period can last anywhere from 12 to 21 months, giving you time to pay off your debts without worrying about interest.

For example, credit cards typically have 20% APR interest rates—or higher. Let’s say you have a $3,000 balance on a credit card with a 20% APR and you’re currently making payments of $175 per month. By transferring your balance to a card that has an 18-month intro 0% APR offer with a 3% balance transfer fee, you’d enjoy a net interest savings of $473 over the life of your repayment.

Balance transfers can be even more beneficial if you have debts on multiple cards. Managing multiple credit cards with varying due dates and interest rates can be overwhelming, even for those with higher incomes. It’s easy to feel stressed and anxious, especially when facing missed payments and escalating debts.

A balance transfer can consolidate your debt into one manageable account, meaning you make one payment instead of several which, hopefully, reduces the stress and makes your finances less daunting.

Lastly, as your credit card balances grow, so do the minimum payments, placing added pressure on your budget. This can be especially challenging when your income is limited. A balance transfer can come to your aid by decreasing your interest costs. This, in turn, lessens your monthly payment, providing some much-needed breathing room in your budget.

Note though, that this intro APR period is just that—an intro. After the promotional period, you’ll be back to paying the card’s standard rate. Be sure to check the Schumer Box for any card before applying so you can understand the full terms.

You can do multiple balance transfers on a credit card, but there are a few key things to remember.

Keep in mind that each transfer can impact your credit score. Applying for a new balance transfer card may result in a hard inquiry on your credit report which can have a minor negative effect on your score. If you apply for multiple cards within a close timeframe, your financial credibility may limit your borrowing capacity.

Even doing a balance transfer on a card you already have open may impact your credit due to changing your credit utilization rate (the amount of credit you’re using compared to your total available credit). As you work to pay down the transferred balance, your credit utilization rate may improve, which can positively impact your credit score in the long run.

If you’re thinking about balance transfer card options to ease the weight of debt, there are a few things you should keep in mind.

Start by researching and selecting a new credit card that offers a balance transfer promotion. Do some homework on the best balance transfer cards with 0% APR. Also consider things like ongoing rewards and additional benefits.

Check the transfer fee. It’s typically between 3% and 5% of the amount being transferred. Even though that might seem like a downside, when you crunch the numbers, you might find that the money you save by avoiding interest in the long run outweighs the initial fee.

Credit card companies may have rules for transferring debt. These rules might limit how much you can transfer based on a percentage of your credit limit or a fixed amount. Whether these limits apply can vary based on general rules or your credit history.

Card issuers can also have rules on how many times you can shuffle outstanding balances. Always check the terms so you have a good understanding of the balance and transfer limitations. You don’t want to end up with a card that doesn’t meet your needs, with the best card being the one that most closely aligns with your financial situation and goals.

The process of balance transfers might seem tricky at the outset, leaving you unsure about where to begin. If you find yourself in the position of not knowing where to start, don’t worry, you’re not alone in feeling this way. Here are some guidelines to follow when starting a balance transfer.

Once you’ve selected the card you want, you will need to contact the new credit card issuer and request a balance transfer. You may be able to request a balance transfer when you apply for the card, or you might need to wait until you’re approved. In either case, the issuer will typically require information about your existing credit card account and the amount you wish to transfer.

Once approved, the new card issuer will pay off the balance on your old card(s), whether it’s with the same issuer or a different one. This amount is then transferred to your new card. You should always be aware of the promotional period for the new card’s balance transfer offer. After this period ends, the interest rate will revert to the standard rate.

Following these steps should help you seamlessly move your debt, all while ensuring, you manage the balance efficiently and responsibly.

The decision to pursue multiple balance transfers on a credit card is entirely yours, and it’s a choice that should be made with careful consideration. Consolidating your debts into one place is a great way to begin to pay them down, so long as you can make the payments on time. If you believe you can, and your credit score allows you to do so, transferring balances can be a great way to handle debts.

Keep in mind that the goal of balance transfers is to lower your interest rate. If you have a lower credit score, this may not be as beneficial for you, as the interest rate may remain the same or even increase.

Another thing to consider is whether you can simply pay off the balance. Balance transfers are primarily intended for individuals seeking a more affordable way to pay down debt they cannot pay off immediately. If you have the funds to simply pay down your debts, it could be the best option as it may lead to additional savings on interest rates and transfer fees.

Weigh the pros and cons before deciding on multiple transfers. Consider factors like fees, the duration of the introductory interest rate and your ability to make consistent payments. Ensure that your financial plan aligns with this strategy, and seek the advice of financial experts if you have questions.