How To Do A Balance Transfer With Capital One – Forbes Advisor

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Balance transfers can help cardholders receive lower or 0% interest rates on existing balances or consolidate multiple balances into one. Existing credit card balances or personal, auto or student loans may also be eligible for balance transfers. Current Capital One cardholders can request a balance transfer via their online account. Prospective cardholders can apply for a new Capital One card offering a 0% introductory APR period to be followed by the card’s standard rate APR.

Find The Best Capital One Credit Cards Of 2022

How to Do a Balance Transfer With Capital One

Capital One allows balance transfers on both new or existing cards. Keep in mind the total amount of the transfer (including fees) cannot exceed the credit limit of the card. This means if you have a $10,000 credit limit and a 3% balance transfer fee, you can only transfer $9,700.

Balance transfers are not eligible for rewards and can take three to 14 days to complete depending on whether it’s an online or mailed-in request.

Use an Existing Capital One Card

Capital One cardholders can transfer a balance to an existing account from a non-Capital One credit card or loan. Log into your online account to see if you’re eligible.

Cardholders should have some information ready before making a request, like the amount they wish to transfer and the name, account number (ie, credit card number) and payment address of the other card issuer.

Capital One may approve a request immediately, or it may take a few days for them to come back with a decision.

Apply For a New Capital One Card

Capital One offers a few 0% introductory APR offers specifically for balance transfers. Fees may still apply, which cardholders should consider when determining whether a balance transfer is worth it.

Applicants with excellent credit are more likely to qualify for the best balance transfer cards that Capital One offers.

Applying for a new credit card almost always results in a hard inquiry into the applicant’s credit report. Expect a short term drop in your credit score following a hard inquiry. Try submitting a pre-approval application to see if you qualify for the Capital One card that interests you.

Capital One VentureOne

The Capital One VentureOne Rewards Credit Card offers a 0% intro APR on purchases and balance transfers for 15 months; 14.99% – 24.99% variable APR after that. There is a 3% fee on every amount transferred.

Other perks include:

  • 20,000 miles after spending $500 on purchases within 3 months from account opening, equal to $200 in travel
  • 5 miles per dollar on hotels and rental cars booked through Capital One Travel and 1.25 miles per dollar on every other purchase
  • $0 fee annual

Capital One Quicksilver

The Capital One Quicksilver Cash Rewards Credit Card offers a 0% intro APR on purchases and balance transfers for 15 months; 14.99%-24.99% variable APR after that. Cardholders must pay a 3% fee on every amount transferred.

Other perks include:

  • $200 cash bonus after spending $500 on purchases within 3 months from account opening
  • 1.5% cash back on every purchase
  • $0 fee annual

Capital One SavorOne

The Capital One SavorOne Cash Rewards Credit Card offers a 0% intro APR on purchases and balance transfers for 15 months; 14.99% – 24.99% variable APR after that. Cardholders must pay a 3% fee on any balance transferred.

Other perks include:

  • $200 cash bonus after spending $500 on purchases within the first 3 months from account opening
  • 3% cash back on dining, entertainment, popular streaming services and grocery stores (which excludes superstores like Walmart and Target) and 1% on all other purchases. Plus, earn 8% cash back on tickets at Vivid Seats through January 2023
  • $0 fee annual

What to Do After Requesting a Balance Transfer

If a balance transfer is approved, the transfer will begin immediately. It can take up to 10 business days until the other card issuer or loan provider processes and receives the information. Online transfers are typically the quickest, while receiving balance transfer checks in the mail may take longer.

Check the old account regularly and keep making payments until the transfer is complete (when you see a zero balance). Ensure the entire approved amount is transferred to your Capital One card. Cardholders can check the status of a transfer on Capital One’s website.

Cardholders can decide what to do with old accounts once transfers are complete. Even if a credit account is inactive, it could benefit credit scores by lengthening credit history and decreasing credit utilization—both crucial factors credit bureaus consider when rating credit scores.

Best Practices for Balance Transfers

While balance transfers can be useful for paying down debt or taking advantage of lower interest rates, cardholders should be vigilant before committing to transfers.

Find the Best Card

The best cards offer a 0% introductory APR for 12 to 24 months, allowing people in debt to take advantage of no interest payments while paying down a big balance. Capital One has several lucrative offers including the ones on the Capital One VentureOne Rewards Credit Card and the Capital One Quicksilver Cash Rewards Credit Card cards.

Calculate Monthly Payments

Before biting the bullet and applying for a new card with no interest, figure out how much each monthly payment should be to pay down the balance completely. Divide the total balance by the number of months offered with no interest to find the optimal amount. (Minimum monthly payments assigned by the card issuer are often not enough to pay down a balance.)

If the ideal monthly payment is affordable, transferring a balance to a new card may be worth it. If it’s not reasonable, consider other options like a personal loan or negotiating with the existing card issuer.

Find an Offer With No Balance Transfer Fee

Although uncommon, some credit cards offer balance transfers with no fee. Fees are usually a small percentage of the balance transfer amount, which can add up to hundreds of dollars depending on the size of the transfer.

The best balance transfer cards offer 0% introductory APR for a set period and do not charge a transfer fee. Cardholders could save money in the long run with this kind of offer, but likely need an exceptionally high credit score to qualify. Try filling out a pre-approval application first.

Read the Terms and Conditions

When applying for a new credit card, applicants should read the card terms carefully, no matter the situation. Terms may be messy and hard to understand. If you are still unclear, call the card issuer directly to ask questions until you are completely sure what you are getting into.

Consider the following before applying for a new credit card with a balance transfer offer:

  • Purchase APRs
  • Balance transfer APRs after the intro period ends
  • If grace periods for new purchases still apply
  • How interest applies to new purchases made using the same card
  • Whether interest will accrue retroactively for the remaining balance after the intro period ends

Find The Best Capital One Credit Cards Of 2022

Bottom Line

Capital One offers enticing balance transfer cards with 0% introductory APRs. Consider the options carefully and take advantage of Capital One’s pre-approval application before committing. Remember new purchases may still accrue interest even if the balance transfer does not. Make sure you can pay off the entire balance before the introductory period ends. Contact the card issuer with any specific questions to understand the card agreement when in doubt.

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