The process of moving outstanding debt from one source to another is called a balance transfer. If you carry credit card or loan balances, a balance transfer credit card may be worth considering. In today's blog we'll take a closer look at three benefits.

Save more money
Many financial institutions provide limited-time offers such as locking in a lower interest rate for a specified amount of time. If you have a high interest rate for your current credit card(s) or loan, choosing a balance transfer credit card with a lower interest rate can help you save money. A lower interest rate can ensure more of your monthly payments go toward principle rather than interest.

Consolidate your debt
A balance transfer credit card can also help you in consolidating debt. During debt consolidation, multiple balances are joined together to create a singular balance. This can be a good choice if you have several loans or credit cards and want to simplify the number of accounts and due dates you need to keep track of. If you are struggling to pay several balances each month, a balance transfer can help offer peace of mind by consolidating your payments.

Reduce debt more quickly
Another advantage of utilizing a balance transfer credit card offer is that you may be able to reduce your debt more quickly. With a lower interest rate, you may be able to pay off your balance faster as a greater amount of each payment will be applied to principle. Consolidating multiple balances can also reduce your debt more quickly as it can be easier to pay off one balance than it is to pay off several.

There are many benefits of a balance transfer credit card. They can be a great way to save money, consolidate your debt, or even reduce the amount of debt you owe more quickly. Knowing the benefits of a balance transfer offer can help you proceed with confidence. If you are looking to lock in a lower rate this year, consider a balance transfer credit card from DCCU. You can learn more about our current offer on our Credit Cards page.

This article is for general information only and not intended to provide specific advice or recommendations for any individual.

Related Articles