You can take money from a money transfer card and pay it directly into your current bank account. Essentially, this means you can borrow cash from your credit card.
A money transfer card is often used to move debt from your bank account to your card. This can reduce the amount of interest you pay, since some money transfer cards offer a 0% rate for a set promotional period. However, you may need to pay a fee to the lender, and it’s a good idea to pay off the card before the 0% period ends.
What’s the difference between a balance transfer and a money transfer?
A balance transfer card lets you move debt from your credit cards, whereas a money transfer card lets you move debt from your bank account. So, a money transfer card could be a useful option if you want to either:
Pay off something that isn’t credit card, such as an overdraft
Give yourself a 0% cash loan for a set period
Both balance transfer and money transfer cards may offer a 0% promotional period, which can last anywhere between 6 to 30 months. Either of them may cost a fee to use, and they’ll usually require a minimum payment each month.
How can I get a money transfer credit card?
It’s relatively simple to apply for and use a money transfer card. You can usually apply online in about 10-15 minutes, although there may be alternative routes depending on the lender. Be prepared to answer questions about your personal details and financial circ*mstances. You may need to provide proof of identity and other documentation. Learn more about applying for a credit card here.
Finding the right card can be a trickier task. So, here are some useful steps to take when deciding to get a money transfer card:
1. Ensure a money transfer card is right for you
Before you apply for a money transfer card, do your research to ensure it’s the right option for you. Think about your existing debt, living expenses (e.g. bills, rent, travel and food), and income – can you comfortably afford credit card repayments and fees? And will you be able to pay off the card before the 0% interest rate period is up? If not, the standard interest charges could make a money transfer card an expensive option.
2. Find a credit card that fits you
See what credit cards deals are on offer and compare them. Make sure you check the features, APR and terms carefully before you apply.
3. Consider improving your score
If you find you’re not eligible for the card you want, you may want to try and improve your credit score. Start by checking your Experian Credit Score with a free Experian account, to get an idea of where you stand with lenders. Then get your Experian Credit Report to understand what’s affecting your score, and what you can do to increase it. Learn more about improving your score here.
Managing your credit card once you have it
Successfully got a money transfer card? Make sure you look after it. A well-managed card can show lenders you’re a reliable borrower, and raise your credit score. However, a badly managed card can end in debt and a damaged score. Here are our top tips for caring for your credit card:
Ensure you meet all minimum monthly payments on time and in full. You might like to set up a direct debit, so you don’t forget to pay. Late or missed payments could mean forfeiting a 0% deal and having to pay higher interest rates
Schedule your payments to go out on your pay day, as this can help you budget better
Pay more than the minimum amount if you can, as you’ll save on interest fees
Try to pay the full amount off before the promotional period ends, or you may end up paying high interest rates
Try not to add to your existing debt while paying off your money transfer credit card, as this could look bad to lenders and damage to chances of getting credit again in the future
Learn more about using credit cards here. We’re a credit broker, not a lender†.
Money transfer credit cards can be a good choice for anyone paying a high rate of interest on existing debts such as a personal loan or overdraft. They could also be a good option for anyone looking for a low-cost loan to cover an unexpected bill or other expenses.
The easiest balance transfer credit card to get approved for is the Citi Double Cash Card because you only need fair credit to qualify. The Citi Double Cash Card also offers an introductory balance transfer APR of 0% for 18 months.
When you're ready to compare credit cards, here are a few things to consider.
Type of Credit Card. All credit cards have some common benefits, including the ability to make and track purchases easily and the opportunity to build credit. ...
You may be approved for a card but denied a balance transfer if your credit limit is too low, you waited too long to request a balance transfer after opening your account or you're trying to transfer a balance from one card to another with the same issuer.
It's quick, it's easy and it won't affect your ability to apply elsewhere. 3. Request the balance transfer – you can do this during your application or after you've been accepted. You'll have 60 days to transfer your old balance to your new account.
You need a credit score of at least 700 to qualify for the Discover it Balance Transfer credit card. That's good credit, but they'll also look at other details from your credit report that may influence your approval odds, such as debt-to-income ratio and recent hard inquiries.
A debit card looks and acts like a credit card, but it's powered by your checking account. With a tap, you can make a purchase or complete bank account transactions at an ATM, and you can even use them for online orders.
Typically, you need a “C” grade or better for a course to transfer. A “D” grade may be accepted on a case-by-case basis depending on the college's flexibility, but in most cases, it will be denied.
Balance transfer cards with 0% interest periods tend to only be offered to people with average or stronger credit histories, so regularly checking your credit score is a good idea. You can check the health of your credit score with any of the three main credit reference agencies – Experian, Equifax and TransUnion.
Transferring a balance is easy. And, if you're transferring to an existing card, it won't require a “hard inquiry” that could impact your credit score.
Address: Suite 228 919 Deana Ford, Lake Meridithberg, NE 60017-4257
Phone: +2613987384138
Job: Chief Retail Officer
Hobby: Tai chi, Dowsing, Poi, Letterboxing, Watching movies, Video gaming, Singing
Introduction: My name is Zonia Mosciski DO, I am a enchanting, joyous, lovely, successful, hilarious, tender, outstanding person who loves writing and wants to share my knowledge and understanding with you.
We notice you're using an ad blocker
Without advertising income, we can't keep making this site awesome for you.
