You can transfer a personal loan to another bank through a balance transfer card. A balance transfer card can not only be used to consolidate credit card debts but also other types of unsecured loans including personal loans. There are two ways to transfer the balance including online banking and phone.
If you choose to make the transfer from your account, you must apply for online banking. Upon logging into your account, you will find the instruction on how to carry out the balance transfer.
You have to prepare the account numbers where you will be transferring the balance from. You also have to state the amount that you want to transfer. The amount must first be approved before it can be successfully transferred.
It takes about 5 – 7 business days for them to review the application and approve it. If you didn’t hear anything for longer than 1 week, it could be that there is an issue and you will have to contact the bank yourself. You may be required to submit more information before they will approve the transfer.
You can also transfer the balance by calling the toll free number at the back of the card. The customer support representative will guide you step by step on transferring the balance on the phone.
When you transfer a balance, a fee of 3% – 5% is usually charged. The fee may seem like a low percentage but it certainly add up to the debt that you already owe. Therefore, if you can avoid it, you must do so. This can be done by having the balance transferred within the promo period.
You can check with the bank or credit card company that issue the card whether it waives the interest fees. Usually, the promo offer will require you to transfer the balance within 30 – 90 days in order to have the balance transfer fee waived. For this reason, it is important to transfer your balance as fast as you can.
When applying for a balance transfer card, always look for the one with long zero interest promo period for example 15 months, 18 months or 21 months. However, to get approved for a card with long zero percentage promo, you need to have a good/excellent credit score. If your credit score is not ideal, you can try to increase it by start paying your bills on time.
The provider can perform the transfer up to the credit limit once you are approved. Before it gets approved, you must continue to make minimum repayment on the old card. Once the balance is transferred, you must make sure to make the repayment promptly. When you do so, it will leave a positive impact on your credit score over time.