How To Perform A Balance Transfer With Chase

Quick answer

• Review Chase’s balance transfer offers for cards that fit your needs.
• Check your credit score to ensure you qualify for favorable terms.
• Understand the balance transfer fee and introductory APR period.
• Calculate potential savings based on your current debt interest rates.
• Follow Chase’s instructions carefully to initiate the transfer.
• Monitor your accounts to confirm the transfer and new payment schedule.

Who this is for

• Individuals with high-interest credit card debt looking to consolidate and save money.
• Those who have a good to excellent credit score and can qualify for Chase balance transfer offers.
• People who plan to pay off the transferred balance within the introductory 0% APR period.

What to check first (before you act)

Goal and timeline

What do you hope to achieve by doing a balance transfer? Is it to pay off debt faster, save on interest, or simplify payments? Your timeline should align with the introductory 0% APR period offered by Chase. Aim to have the balance paid off before the regular APR kicks in.

Current cash flow

Analyze your monthly income and expenses. Can you realistically allocate a specific amount each month to pay down the transferred balance? A balance transfer is only effective if you have a plan and the means to stick to it.

Emergency fund or safety buffer

Before moving debt, ensure you have a solid emergency fund. This fund should cover 3-6 months of essential living expenses. Without this buffer, unexpected costs could derail your debt payoff plan and force you to accrue more debt.

Debt and interest rates

List all your current credit card debts, including their balances and interest rates (APRs). This is crucial for calculating how much you can save. A balance transfer is most beneficial when moving debt from high-APR cards to a card with a 0% introductory APR.

Credit impact

A balance transfer can affect your credit score. Opening a new credit account can temporarily lower your score. However, paying off high-interest debt can improve your credit utilization ratio over time, which is a positive factor. Check your credit score before and after to monitor changes.

Step-by-step (simple workflow)

1. Research Chase Balance Transfer Offers

What to do: Explore current Chase credit card offers that feature balance transfer promotions. Look for cards that advertise a 0% introductory APR on balance transfers for a specific period.
What “good” looks like: You’ve identified at least one Chase card with a balance transfer offer that aligns with your debt payoff timeline and offers a competitive introductory APR period.
A common mistake and how to avoid it: Assuming all Chase cards offer balance transfers. Avoid this by specifically looking for cards that advertise this feature and reading the offer details carefully.

2. Check Your Credit Score

What to do: Obtain your credit score from a reputable source. Many credit card issuers, including Chase, provide free credit score access to their cardholders.
What “good” looks like: You have a good to excellent credit score, which generally increases your chances of approval and qualifying for the best balance transfer terms.
A common mistake and how to avoid it: Applying without knowing your credit score. This can lead to rejection, which results in a hard inquiry on your credit report, potentially lowering your score.

3. Review Offer Terms and Fees

What to do: Carefully read the fine print of any balance transfer offer you’re considering. Pay close attention to the balance transfer fee (usually a percentage of the transferred amount) and the length of the 0% introductory APR period.
What “good” looks like: You understand the total cost of the balance transfer (fee) and how long you have to pay off the debt interest-free.
A common mistake and how to avoid it: Overlooking the balance transfer fee. This fee can add to your overall debt, so factor it into your savings calculation.

4. Calculate Potential Savings

What to do: Use your list of existing debts and their APRs to estimate how much interest you’ll save by transferring the balance to a 0% APR card. Include the balance transfer fee in your calculations.
What “good” looks like: You can clearly see a significant amount of interest saved, making the balance transfer a financially sound decision.
A common mistake and how to avoid it: Only focusing on the 0% APR and not the fee. Ensure the interest saved outweighs the balance transfer fee.

5. Apply for the Chase Card

What to do: Complete the online application for the chosen Chase credit card. Provide accurate and truthful information.
What “good” looks like: Your application is submitted successfully.
A common mistake and how to avoid it: Providing incomplete or inaccurate information. This can lead to application delays or denial.

6. Initiate the Balance Transfer

What to do: Once approved, follow Chase’s instructions for initiating the balance transfer. This usually involves providing the account numbers of the credit cards you want to pay off.
What “good” looks like: You’ve successfully submitted the request for the balance transfer to be processed.
A common mistake and how to avoid it: Not transferring the full amount you intended. Double-check the amounts you’re requesting to be transferred.

7. Confirm Transfer Completion

What to do: Monitor your old credit card accounts and your new Chase card statement. Ensure the balance has been transferred correctly and that your old accounts are being paid down.
What “good” looks like: The old balances are gone, and the transferred amount appears on your new Chase card statement.
A common mistake and how to avoid it: Assuming the transfer happened automatically and not verifying. You are still responsible for payments on your old accounts until the transfer is confirmed.

8. Create a Payment Plan

What to do: Set up a plan to pay off the transferred balance before the introductory 0% APR period ends. Aim to pay more than the minimum payment.
What “good” looks like: You have a clear, aggressive payment schedule designed to eliminate the debt within the promotional period.
A common mistake and how to avoid it: Making only the minimum payments. This can result in a large portion of the balance still being subject to interest when the promotional period ends.

9. Monitor Your New Account

What to do: Keep an eye on your new Chase card statement for any unexpected fees or changes in terms.
What “good” looks like: Your statement is clear, and you are on track with your payment plan.
A common mistake and how to avoid it: Forgetting about the new card and its terms. New charges on the balance transfer card might not be at 0% APR and could accrue interest.

10. Avoid New Purchases on the Transfer Card (Initially)

What to do: If possible, avoid making new purchases on the card where you’ve transferred your balance, especially if those purchases are not at 0% APR.
What “good” looks like: The balance transfer amount is steadily decreasing without new charges being added.
A common mistake and how to avoid it: Using the new card for everyday spending. This can quickly add to the balance and make it harder to pay off the original transferred debt.

Common mistakes (and what happens if you ignore them)

| Mistake | What it causes | Fix