Credit Card Balance Transfer Minimum Payment Amount (2024)

FAQs

How much minimum amount should be available for the balance transfer? ›

The balance transfer facility can be availed for a minimum amount of Rs. 5,000 and a maximum of up to 75% of the credit limit.

Because when you carry a balance on your credit cards, your credit card issuer will charge interest on your debt—and when you only make the minimum payment on your credit cards, those interest charges can quickly add up.

Card issuers typically have rules surrounding the amount of debt you can transfer in relation to your credit limit. Many issuers are generous, giving cardholders the ability to transfer their full credit limit, but in some cases, your transfer limit may be capped at 75 percent of your overall credit limit.

Even if you have a 0% intro APR offer on your new balance transfer card, you still have to make at least your minimum payment every month (though, ideally, you'll pay more). If you don't make at least the minimum payment before your due date, you'll be charged a late fee and could lose your intro APR.

A very common way to calculate your minimum payment is by charging a flat percentage of your total bill (often 1-3%) plus any accrued interest and fees from the prior billing cycle. There may also be a flat rate minimum, such as $35, on smaller balances.

Balance transfer fees are typically 3 percent or 5 percent of the total balance you transfer to your new card. So, for every $10,000 in debt you move to a balance transfer credit card, you'll owe an additional $300 or $500.

You may have to pay a balance transfer fee

Many balance transfer credit cards will charge a balance transfer fee of 3% to 5% of the amount you transfer, usually with a minimum of $5 to $10. Let's say you transfer $5,000 and there's a 3% balance transfer fee. You'll end up paying a $150 fee just to do the transaction.

A balance transfer can improve your credit over time as you work toward paying off your debt. But it can hurt your credit if you open several new cards, transfer your balance multiple times or add to your debt.

The problem is that transferring a balance means carrying a monthly balance. Carrying a monthly balance by not paying off the minimum amount due each month—even one with a 0% interest rate—can mean losing the card's introductory APR, its grace period and paying surprise interest on new purchases.

In some cases, a balance transfer can positively impact your credit scores and help you pay less interest on your debts in the long run. However, repeatedly opening new credit cards and transferring balances to them can damage your credit scores in the long run.

What happens to an old credit card after a balance transfer? ›

After a balance transfer takes place, your old account remains open. The original card issuer will typically only close your account if you make a request for it to do so. Unless you have a good reason to cancel your old credit card, however, you may want to think twice before you close the account.

Your request for a balance transfer might be declined if the transfer amount is above your credit limit, your account is in poor standing or you're trying to transfer a balance to a card from the same credit card issuer.

For bank accounts, the minimum balance is the minimum dollar amount that a customer must have in an account to receive some service benefit, such as keeping the account open or receiving interest.

John S Kiernan, Managing Editor

A 3% balance transfer fee is a good deal when it is paired with a 0% balance transfer APR. Nearly all credit cards with 0% balance transfer APRs have balance transfer fees of 3%, and you can still save a lot of money by reducing your interest rate even when there's a fee.

A balance transfer can affect your credit score, depending on 1) if you open a new card to transfer a balance and 2) what you do once your balances have been transferred. If you simply move your balances around on your existing cards, your credit score likely won't be impacted.

Moving debt from a high-interest credit card to one with a 0% introductory APR can help you avoid interest charges and pay down your debt more quickly. But how much you can transfer will depend on your credit limit and the issuer's balance transfer rules.