How to use the Wells Fargo Active Cash for a balance transfer

The Wells Fargo Active Cash® Card has a lot going on for it. It offers double cash rewards on purchases, charges no annual fee and comes with some solid intro offers. One of them is a balance transfer offer, which can be incredibly helpful if you're working on paying off credit card debt.

CNBC Select explains how balance transfers work on the Wells Fargo Active Cash, what to keep in mind before you complete the transfer — and what to do after.

The Wells Fargo Active Cash offers a 0% intro APR for 15 months from account opening on purchases and qualifying balance transfers. After that, you'll pay a variable APR of 20.24%, 25.24% or 29.99%. You need to make the transfer within 120 days from account opening to qualify for the intro rate. During this period, you can also qualify for the intro balance transfer fee of either $5 or 3% of the transferred amount (whichever is greater). The regular balance transfer fee on the card is 5% (with a minimum of $5).

Note that your balance transfer won't earn you rewards. The Wells Fargo Active Cash offers 2% cash rewards on purchases, but balance transfers are considered a different transaction category.

Still, this is a generous offer. For example, let's say you want to transfer a $1,000 balance from a card with a 20% APR. If you pay $75 per month, you'll pay it off in 15 months, losing $138 to interest. But if you transfer the balance to the Wells Fargo Active Cash, you'll pay it off in under 14 months if you make the same monthly payment. Moreover, you'll save $108 after subtracting the 3% balance transfer fee.

But if you have a higher credit card balance, 15 months might not be enough time to pay it all off. If that's the case, consider applying for a different balance transfer card. For example, Wells Fargo also offers the Wells Fargo Reflect® Card that gives you 0% intro APR for 21 months from account opening on purchases and qualifying balance transfers (18.24%, 24.74% or 29.99% variable APR thereafter). There's an intro balance transfer fee of 5% for each balance transfer, with a minimum of $5 completed within 120 days from account opening qualify for the introductory rate. The card has a $0 annual fee.

The Citi Simplicity® Card is another excellent option. Similarly, it provides 0% Intro APR for 21 months on balance transfers from the date of the first transfer. There is an intro balance transfer fee of 3% of each transfer (minimum $5) completed within the first 4 months of account opening. After that, the issuer will charge a variable APR of 19.24% to 29.99%. This card also has a $0 annual fee.

If you've done the math and decided that the Wells Fargo Active Cash is the right card for your balance transfer, there are several steps you'll need to complete.

1. Get approved for the card. You'll most likely need good or excellent credit to qualify.
2. Request a balance transfer within 120 days. You can do so by logging in to your online account or calling the issuer. Note that not all accounts are eligible for balance transfers, although Wells Fargo doesn't specify how that's determined.
3. Provide the required information, including account numbers for your creditors and the amounts you want to transfer. Your balance transfer limit is typically your credit limit, unless the issuer indicates otherwise.
4. Wait for your balance transfer to go through. Your request may take up to two weeks to reflect in your account. In the meantime, make sure to continue paying your old card on time.

Once you complete the balance transfer, the real work begins. For the transfer to save you money and help you ditch the debt, you'll need plenty of patience and dedication.

Here are some tips on how to make it all work.

Stay disciplined

You want to ensure you pay off the transferred balance before the intro period expires. This way, you can avoid hefty interest charges. Additionally, if you still have some leftover balance on your old card, make your monthly payments on time and stay committed to your debt payoff goal.

Avoid making new purchases

A balance transfer frees up the credit limit on your old card. This might tempt you to spend and add to that card's low balance. Resist — it's too easy to slip into even more debt if you don't.

Commit to healthy credit habits

A balance transfer might be a convenient debt consolidation tool. But ideally want to avoid taking on so much debt in the first place. Practice living within your means and beef up your savings so that an emergency won't put you in the red. If you haven't yet, start building an emergency fund and keep it in a high-yield savings account. CNBC Select recommends LendingClub which consistently advertises a high APY. You'll need an initial $100 deposit to open the account, but afterward, there's no minimum balance required.

The Wells Fargo Active Cash can be an excellent choice for your balance transfer. Besides a generous intro offer, the card provides ongoing value through cash-back rewards. Still, make sure to do the math to see if the offer is a good match for you — and don't forget to consider other cards too.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every credit card guide is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics.

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