What To Know
- A balance transfer is a financial maneuver that allows you to move debt from one credit card with a higher interest rate to another card with a lower interest rate.
- Offers a 0% introductory APR on balance transfers for 15 months, but with a slightly higher balance transfer fee of 5%.
- Provides a 0% introductory APR on balance transfers for 18 months, but the regular APR is higher than the Chase Sapphire Preferred® Card.
Are you seeking a way to consolidate your high-interest debts and save money? If so, you may have stumbled upon the Chase Sapphire Preferred® Card and wondered, “Does Chase Sapphire Preferred do balance transfers?” In this comprehensive guide, we’ll delve into the ins and outs of balance transfers with the Chase Sapphire Preferred® Card, empowering you to make an informed decision.
Understanding Balance Transfers
A balance transfer is a financial maneuver that allows you to move debt from one credit card with a higher interest rate to another card with a lower interest rate. This can significantly reduce your monthly interest payments and help you pay off your debt faster.
Chase Sapphire Preferred® Card and Balance Transfers
Yes, the Chase Sapphire Preferred® Card does offer balance transfers. However, it’s crucial to note that there are certain terms and conditions associated with this feature:
- Balance Transfer Fee: A one-time fee of 3% of the transferred amount (minimum $5) applies.
- Introductory APR: The Chase Sapphire Preferred® Card offers a 0% introductory APR on balance transfers for 15 months. After that, a variable APR of 14.99% – 24.99% applies.
- Eligibility: You must be in good standing with Chase and meet their creditworthiness criteria to qualify for a balance transfer.
Benefits of Using Chase Sapphire Preferred® Card for Balance Transfers
- Low Introductory APR: The 0% introductory APR for 15 months can save you substantial interest charges.
- Potential Credit Line Increase: Transferring balances may free up your credit limit on your old card, giving you more spending power.
- Rewards Program: The Chase Sapphire Preferred® Card earns 2x points on dining and travel purchases, which you can redeem for future travel, cash back, or other rewards.
Drawbacks of Using Chase Sapphire Preferred® Card for Balance Transfers
- Balance Transfer Fee: The 3% fee can add up quickly if you transfer a large amount of debt.
- Limited Time for Introductory APR: The 0% introductory APR only lasts for 15 months, after which the regular APR applies.
- Credit Score Impact: Applying for a new credit card can temporarily lower your credit score.
How to Do a Balance Transfer with Chase Sapphire Preferred® Card
1. Apply for the Chase Sapphire Preferred® Card: If you’re not already a cardholder, apply online or through a Chase branch.
2. Activate Your Card: Once your card is approved, activate it by calling the number on the card or online.
3. Initiate a Balance Transfer: Log in to your Chase account and navigate to the “Balance Transfers” section. Follow the prompts to select the amount and destination card you want to transfer the balance to.
4. Pay the Transfer Fee: The balance transfer fee will be automatically charged to your Chase Sapphire Preferred® Card when the transfer is complete.
5. Make Timely Payments: To avoid paying interest during the introductory APR period, make all your payments on time and in full.
Alternative Options for Balance Transfers
If the Chase Sapphire Preferred® Card doesn‘t meet your needs, consider these alternative options:
- Chase Freedom Unlimited® Card: Offers a 0% introductory APR on balance transfers for 15 months, but with a slightly higher balance transfer fee of 5%.
- Discover it® Balance Transfer Card: Provides a 0% introductory APR on balance transfers for 18 months, but the regular APR is higher than the Chase Sapphire Preferred® Card.
- Citi Simplicity® Card: Features a 0% introductory APR on balance transfers for 21 months, but with no rewards program.
Which Option is Right for You?
The best balance transfer option for you depends on your individual circumstances. Consider factors such as the amount of debt you need to transfer, your creditworthiness, and your desired rewards program.
Recommendations
The Chase Sapphire Preferred® Card offers a convenient and potentially cost-effective way to consolidate your debt through balance transfers. By understanding the terms and conditions associated with this feature, you can make an informed decision and maximize the benefits it provides. Remember to compare different balance transfer options to find the one that best aligns with your financial goals.
Answers to Your Questions
Q: How long does it take for a balance transfer to be processed?
A: Balance transfers typically take 2-5 business days to process.
Q: Can I transfer balances from multiple cards to my Chase Sapphire Preferred® Card?
A: Yes, you can transfer balances from multiple cards as long as you have enough available credit on your Chase Sapphire Preferred® Card.
Q: What happens if I don’t pay off my balance transfer during the introductory APR period?
A: Interest will start accruing on the remaining balance at the regular APR.
Q: Will a balance transfer affect my credit score?
A: Applying for a new credit card, including the Chase Sapphire Preferred® Card, can temporarily lower your credit score. However, making timely payments on your balance transfer can help improve your score over time.
Q: Can I cancel my balance transfer after it has been processed?
A: No, once a balance transfer has been processed, it cannot be canceled.
