Benefits of Transferring Your Balance
Are you continually paying on high interest rate credit cards and not seeing your balances go down much? Higher interest can slow you down when it comes to paying off your debts. Consider transferring high interest balances to a lower interest card and eliminate debt faster. Here’s how it can benefit you.
By moving balances to a lower interest card, you reduce the amount of interest you pay, which saves money on finance charges and can lower your monthly payments.
Pay Balances Faster
Apply the money you save on interest to your new payment. Do this consistently, and you could see your balances decrease at a faster rate.
Simplify Your Finances
It’s also easier to keep track of one payment and balance, instead of managing multiple accounts.
Things to Consider
When choosing a credit card, compare fees and terms, as well as rate. While an introductory rate may be appealing, pay attention to what the rate will go up to once the lower introductory rate ends. Also, special rate offers for balance transfers usually don’t apply to new purchases. If your repayment plan involves continuing to apply for new cards every time the introductory rate ends while still carrying high debt levels, consider what that may do to your overall credit score.
If you want a low-rate, low-fee card, check out TFCU’s Visa Platinum card and compare it’s features with other cards.