Did you know that almost every bank in the world allows you to bank online? You can even do a balance transfer to the same bank. Fact is, online banking has completely changed the way we handle our finances. In the old days, you’d have to collect and deposit cash and cheques to pay off your credit. By contrast, now you can simply go online and do a balance transfer into another bank account or credit card.
Have you ever asked yourself “can you do a balance transfer to the same bank”?
When it comes to matters like this, you’re actually not alone. The digital age can be useful but complicated at the same time. That’s why we have answered some of the most frequently asked questions about balance transfers down below.
To learn more, read on for more information about balance transfers and what you can do with digital banking.
What is a balance transfer?
A balance transfer is the ability to move your debt from one account to another, usually with credit cards.
This means that you can get new credit to help you pay off your old credit. This can be useful if you have access to credit with a better interest rate and would like to transfer your balance to that account.
How do balance transfer cards work?
A balance transfer card allows you to transfer the balance of another credit card onto it. Usually, it can be done for a small fee. Balance transfer cards usually also come with an initial 0% interest period.
This means the transferred balance won’t build up any interest during that set period of time. As a result, it gives you a longer period of time to pay off what you owe. You’ll still need to keep up with the minimum monthly repayments. Remember, once the 0% period ends, the card’s usual APR will apply.
What are the benefits of a balance transfer?
Balance transfer cards can be a great way to save money on interest. This is because if you manage to get a balance transfer card with a lower interest rate than your current credit card, you can transfer the debt onto the cheaper facility.
While some cards may charge an initial balance transfer fee, balance transfer cards are generally a more affordable way to manage and even pay off your debt.
Can you do another balance transfer to the same card?
Balance transfers can help you move debt from one facility to another. That said, banks have a tendency to put some limitations on them as well. This generally means that you won’t be able to transfer the balance to the same card. Instead, you would need to transfer it to another facility from a different issuer.
In some cases, the bank will let you transfer from one card to another card within the same bank. This is possible if the two cards are different, separate credit facilities.
Do balance transfers hurt your credit score?
Balance transfers may seem like you’re hacking the system. Particularly because they don’t have an affect on your credit score at all.
Your credit score will keep track of your credit payments and payment history. Transferring your debt may now mean you have a larger amount of credit available to you with your new card. This could lower your credit utilisation ratio and improve your score.
Due to the fact that you need to apply for a balance transfer facility, this could temporarily lower your credit score. This is because a new credit inquiry will be added to your profile.
Can you make balance transfers to the same bank?
Banks will generally put some limitations on balance transfers within the same bank. While some banks may allow you to, this is very rare.
In most cases, the most effective thing to do is to apply for a balance transfer card at a different bank that uses a different card issuer. This will allow you to effectively move your debt to a lower-interest credit card.
Mobile and internet banking makes this even easier. To make a transfer, all you need to do is log in to the app or online banking portal. This makes transferring funds from your credit card or credit facility to another account easier than ever.
Can you make a balance transfer to someone else’s credit card?
A balance transfer credit card may let you transfer funds to a balance transfer card in someone else’s name, however it varies from provider to provider. This means that you may be able to transfer your card balance to a credit card owned by somebody else if you have their permission and they facilitate the transfer.
This could be a way to consolidate debt you may have with your partner. However, you may find that you have more options using a debt consolidation loan to clear both your debts rather than transferring them all onto one balance transfer card.
Balance transfer cards come with fixed credit limits, so it might not be feasible to transfer all your credit card balances onto a single card. With a debt consolidation loan, you could use it to clear multiple cards, store cards, loans and overdrafts. Then, you could set up a direct debit to help you both actively start paying off your debts.
Can I transfer money from credit card to debit card?
In short, no. With a debit card, you’re spending money you have in the bank. When you spend on a credit card, you are borrowing from the credit card provider. This means that you don’t actually have money on the credit card and you’ll need to repay what you spend at a later date. This means that you can’t simply move credit from a credit card to a debit card.
If you do need cash, you can sometimes do this through a cash advance. This is a cash loan that you’d need to repay and must be within your credit limit. However, this tends to be an expensive way to borrow money as the interest usually starts to build up on the amount you owe as soon as you take it out. You may therefore want to consider other borrowing options first to work out whether this is right for you.
Stay in control of your finances with Aro
So: ever asked yourself “can you balance transfer to the same bank”? Aro is here to tell you that the answer is an emphatic “No.” Most credit card providers won’t allow you to make a balance transfer to a card owned by the same provider.
Balance transfers are a savvy way to move card balances from one card to another to take advantage of 0% interest periods. Just remember that when a 0% period ends, the card’s usual APR will apply. So, when you transfer balances, try to create a repayment plan for yourself to ensure you chip away at your debt each month, rather than simply putting off the full repayment.
If you have any questions or want to learn more, feel free to browse our website to find the perfect credit card for you.