How to Calculate Credit Card Transfers
If you are carrying a balance on credit cards that have a high interest rate, you may be able to save a considerable amount of money by doing a balance transfer. With a credit card balance transfer, you can take the balance from a high interest rate credit card and transfer it to a credit card with a lower interest rate. Sometimes you can get a low, promotional balance-transfer interest rate.
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Instructions
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Look at balance transfer paperwork that you have received from the credit card company. If you are viewing the offer online, the same information is available. Locate the balance transfer interest rate and the balance transfer fee.
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Review your most recent credit card statement for the balance that you want to transfer. Check the outstanding balance amount.
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Compare the outstanding balance amount that you want to transfer with the available credit on the card to which you want to transfer your debt.You need to make sure that you do not exceed the available credit on the balance transfer card because you will get over-the-limit fees and you will likely see the promotional balance transfer rate raised.
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Calculate your balance transfer fee. Some cards have a set fee while others charge a percentage based on the balance you are transferring. Typically there is a maximum fee amount as well. For example, if the fee is 3 percent and you are transferring $2,000 then it would cost you $60.
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Use an online balance transfer calculator to see what you savings will be. The Bill Savings website has an easy-to-use online calculator that calculates the balance transfer fee for you.
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Transfer the balance by filling out the transfer paperwork and mailing it to your creditor, calling your creditor or using your creditor's website.
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