How does a credit card balance transfer work?Does it increase my limit?

ok so i have two credit cards i want to transfer 1000 dollar balance into a credit card i have thats limit is 500 if i do this does it mean that my credit limit will increase by 1000 after i pay it off on the card i transfer the money into that has a limit of 500?

Responses:

Basically what it means is you combine both credit limits into one
Credit card balance transfer is one of the preferred ways to get rid of credit card debt and is used by many people to get immediate relief. Credit card balance transfer essentially means that we transfer our outstanding balances from a high APR credit card to a credit card which offers low APR's. A 0% Intro APR credit card is the preferred credit card to transfer balances, but because of the widespread misuse of such credit card offers, credit card companies have withdrawn all such offers. Indeed balance transfer saves a lot of money and can save things from going worse, but many people simply do not know the right way to do balance transfer. This article takes a look at the correct process to initiate and complete the balance transfer. The first thing to look out, when a person wants to transfer his balances is a credit card which offers the lowest apr rates and lowest balance transfer fees. Many online credit card companies offer credit card comparisons. It is indeed a good practice to search for the credit cards using their services and decide on a credit card which offers the maximum savings. It is important to note here that balance transfer APRs depend on a person's credit history. If the credit card in question offers the lowest rates, it is definitely for those with the best credit ratings. There are different balance transfer apr's for people with lower credit ratings. So, it becomes imperative that one chooses the credit card which offers the lowest apr and balance transfer fees for his credit ratings. When you decide for a balance transfer it doesn't mean that your obligation for payments towards your outstanding balances with the existing credit card company cease to exist. You will have to pay the credit card company all the monthly payments. One way you can save money is to just send the monthly minimum payments to the existing credit card company. This way you will not default and invite penalty. Read more from: credit - card - gallery.com / article / 414, The_right_way_to_credit_card_balance_transfers
A balance transfer is one credit card company making a payment to another credit card company and adding the amount of the payment to what you owe them. Read your terms and conditions. Most cards will not let you do a transfer that will cause you to exceed the limit of the card you are transferring to. If it does, be prepared for some rather large over - limit fees on top of the transfer fees. A temporary overage will not automatically increase your limit and is likely to trigger a cascade of increased interest rates on all your cards
Okay, balance transfers, and warnings about them: 1 They do not affect your credit limit. You can not transfer $1000. 00 to a card with a $500. 00 limit unless you ask for a temporary increase in your limit. However, you do not have to do a complete transfer - you could just transfer $500. 00. 2 Often, they have fees. Usually, if there is a fee, it's a rip - off and you do not want to do it. Rarely will the lower interest pay for the difference in fee. Ask for a no - fee transfer. 3 If they have an introductory balance transfer rate, it can be very tricky to use. Why? Let's say the following: - You have a promotional balance transfer rate of 0% - You have a purchases rate of 23% You do your balance transfer, and you make a purchase. Then, you make your payment. The credit card company will apply all of the payment to your balance transfer, leaving you holding the bag paying 23% on the entire purchase. That s. The only way to beat this is to do the balance transfer, and then do not use the card for any reason until the balance is paid off. Then, you really get a 0% rate for howevermany months. So, the way to do it "right" is: 1 Find a card with low interest on balance transfers and no fee. 2 Do the balance transfer. 3 do not touch the card again until the balance is paid in full or the promotional low interest rate has expired. - >Adam
If you have only $500 credit limit, you can not transfer a $1000 debt into that account. You can only transfer the amount that credit card allows and make sure to leave room for the transaction fee. Not because you have $1000 debt, credit card company automatically increases your credit line to meet your need or to retain your business. They gave you $500 credit line for a reason. You can certainly ask to increase the credit line if you're qualified
If you try to transfer $1000 into a credit card with only a $500 limit, uming the card company will even do it, they will charge you a huge over the limit fee, plus probably change the interest rate. I have had 8 or 10 cards for 20 years and that is the only way I use them, but I would never try to transfer a balance to a card with a lesser line of credit. In fact there is no advantage to transferring a balance at all unless you have a good deal on interest rates. Making two payments in a month rather than one cost you some inconvenience and an extra postage stamp, but that is all. You need more incentive to transfer than that

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