Continue Making Payments During a Balance Transfer


While I believe credit card balance transfers are a great tool to manage debt and get rid of finance charges, it’s still important to point out all the possible drawbacks.

One such issue is missing a payment on your old credit card after executing a balance transfer request.

Let’s look at an example:

Credit card balance: $2,500
Credit card payment due date: August 10
Balance transfer request date: August 1

If you plan on moving $2,500 from one credit card to another via a 0% APR balance transfer, make sure it is actually completed before your next minimum payment due date.

In the case above, the credit card issuer may not complete the balance transfer request for 10 business days (how long do balance transfers take?), so if you don’t make at least the minimum payment, you’d be hit with a late fee and possibly a credit score ding.

While a balance transfer does count as a payment, it will mean very little if it isn’t made on time.

Don’t ever assume the credit card company will complete your request within a certain period of time. It is ultimately your responsibility to make sure your bill is paid on time.

Tip: To avoid overpayment without actually missing a payment, monitor the status of your balance transfer by logging into your old credit card account daily to see if the new card issuer has made the balance transfer payment.

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