Credit Card Transfer Calculator

Published on Sep 01, 2015 01:52 am

If you carry a balance on one or more credit cards, you may wonder if you could save money by transferring a balance to a card with a lower interest rate. Would you be able to pay off your balance sooner if more of your payment goes toward principle than interest? Adding a card also could increase your available credit and decrease your balance-to-limit ratio — a factor that could positively affect your credit score. Before you transfer a balance, it’s important to compare interest agreements. Use our Credit Card Transfer Calculator to help determine if a switch would be in your favor.

Credit Card Transfer Calculator Definitions

  • Balance-to-limit ratio – Otherwise known as utilization rate, this is calculated by dividing the total balances by the total credit limit of all your cards. A high BTL warns creditors of possible financial difficulty or the use of credit beyond your means.
  • Credit score – A number FICO assigns to consumers indicating their capacity to repay a loan. Most fall between 301 and 850. The top five determining factors include credit payment history, amount owed, length of credit history, new credit and types of credit used.
  • Principle – The amount borrowed or still owed on a loan, separate from the interest charges lending institutions and credit card companies add.
  • Credit card interest – Most U.S. credit cards are quoted in terms of nominal annual percentage rate (APR) compounded daily, in a range of 7 to 36%. The holder may change the interest rate over the course of your credit card agreement if you’ve had the card a year or more, a promotion is ending, you’re late with payments, your credit score has dropped substantially or you signed up for a variable interest rate.
  • Introductory term – An interval in which credit card companies offer a low annual percentage rate to motivate you to apply. APR goes up when the term expires.
  • Balance transfer fee – The amount charged by a credit card company to transfer a balance from another card, which is typically 3 to 5% of the total.

  • Get Your Free Experian Credit Report No Credit Card Required

    This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.
    Published by permission from, Inc., an Experian company. © 2015, Inc. All rights reserved.

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