If you want to consolidate your balance from several credit cards into just one credit card, a balance transfer may be just what you need. This way, you don’t need to keep track of several due dates and feel the strain on your finances each month.
You can just pay a certain amount per month for a fixed time period, giving you a little bit of breathing space in your budget, and maybe even a lower monthly due or interest rate.
What’s a balance transfer, and how do you do one?
A balance transfer is the process of transferring your balance from a current or active credit card to a new credit card.
Once transferred, you will then make regular credit card payments to your new credit card within a specific time frame based on payment terms that you choose.
The shortest term is 3 months, and the longest is 60 months.
All credit cards have the balance transfer feature. If you wish to apply for a new credit card just for this purpose, you will still need to go through the normal credit card application process.
Here are some balance transfer credit cards to choose from
PNB Balance Transfer Summer Campaign
PNB has a balance transfer promotion until April 30, 2020, and it’s open to principal PNB credit cardholders who are active and in good standing.
You can avail of this offer for a minimum balance transfer amount of 10,000 PHP for terms of 3 up to 24 months.
The maximum amount is 30,000 PHP for a term of 3 months.
If you’re a non-PNB credit cardholder and wish to transfer your balance, you can do so if the credit card is under your name or your relatives’ names (only parents, spouse and children, though).
Consolidate your credit card balance with Citi
Citi’s balance transfer feature offers a lower converted monthly factor rate. But of course, this one will vary depending on your credit performance.
You can choose from flexible payment terms of 6 up to 60 months.
The disbursement fee of 250 PHP will also be waived when your balance transfer application gets approved until April 15, 2020.
When your balance is successfully transferred to CIti, your monthly due will be reflected on your second statement of account and every month after your approval date.
You can refer to this table for the terms and rates:
Metrobank Balance Transfer
The minimum balance transfer amount is 6,000 PHP and should not exceed the card’s available credit limit. Only principal cardholders in good standing may apply for a balance transfer.
There will also be a charge of 250 PHP for approved applications.
Your balance transfer amount is also not eligible to earn reward or bonus points.
You may refer to this table for the terms and rates:
| Term | Add-On Rate Per Month | Monthly Effective Interest Rate |
| 6 months | 0.99% | 1.674% |
| 9 months | 0.99% | 1.742% |
| 12 months | 0.99% | 1.771% |
| 18 months | 0.99% | 1.786% |
| 24 months | 0.99% | 1.781% |
| 36 months | 0.99% | 1.750% |
| 48 months | 0.99% | 1.714% |
| 60 months | 0.99% | 1.678% |
To give you a clear picture of how much your monthly amortization will be, here’s a sample computation for balance transfer amounts of 50,000 PHP, 70,000 PHP, and 100,000 PHP.
Security Bank Balance Transfer
You can transfer your balance from your Security Bank or non-Security Bank credit card for no additional charge.
The minimum balance transfer amount is 5,000 PHP.
You have the option to avail of Regular Rates or Personalized Rates. The table below illustrates the terms and add-on rates under Regular Rates.
| Term | Add-On Rate Per Month |
| 3 months | 2.25% |
| 6 months | 2.00% |
| 9 months | 1.93% |
| 12 months | 1.91% |
| 18 months | 2.03% |
| 24 months | 2.06% |
Hassle-free balance transfer with RCBC Bankard
The minimum balance transfer amount is 5,000 PHP, and there’s no maximum amount availment.
You can enjoy a monthly interest rate for as low as 0.89% for terms up to 36 months.
The loanable amount for balance transfer should not exceed 90% of the available credit limit. But you can request several balance transfers from non-RCBC Bankard credit cards, as long as the total loanable amount does not exceed 90% of the available credit limit.
You may refer to the table below for the terms and rates.
AUB Balance Transfer Installment Plan
With AUB credit cards, the minimum single transaction amount for balance transfer is 3,000 PHP.
It’s open to existing and active principal AUB cardholders and non-AUB credit cards in good standing.
Also, 80% of the available credit limit should be able to cover the principal amount and the total add-on interest.
You can transfer balances from up to 3 non-AUB cards in one application, and a minimum of 3,000 PHP balance per card is required.
Here’s a table of the terms and rates:
| Term | Add-On Rate Per Month | Effective Rate P.A. |
| 6 months | 1.50% | 30.2306% |
| 12 months | 1.30% | 27.6469% |
For a sample computation with a balance transfer amount of 10,000, you can check this table below:
Final Thoughts
Balance transfers are still subject to verification and approval, so a good credit standing is required to be able to qualify.
If you are able to transfer your balance, the transferred amount is not eligible for bonus or reward points.
Banks also have the option to transfer just a portion of the amount you’re requesting to transfer, so you may end up having another credit card to pay for.
But a balance transfer is useful if you want to consolidate your debts and just have one due date to keep track of. It can simplify your credit card payments.
You can find lower interest rates, and you can also have the option to pay in shorter or longer terms with monthly amounts that you can afford.
There will be more breathing room when it comes to your finances because monthly payments to your new credit card are often smaller. And this will help you stick to your budget and make better financial decisions moving forward.
Have you tried this balance transfer option before? How has it helped you with your finances?