If you carry multiple loan or credit card balances, a balance transfer credit card may be a good option for consolidating debt and simplifying your finances. It could also help you reduce debt more quickly by allowing you to focus on one payment instead of many. Credit card balance transfer offers allow you to move debt from one (or more) loan or credit card to a different credit card, often with enticing rates and terms.   

Let’s look at the benefits of taking a balance transfer offer:

Take advantage of a lower interest rate and save money
If you’re carrying balances on loans or credit cards and paying interest every month, a balance transfer could save you money. The lower rate is especially beneficial if you currently have a high interest rate on your existing loan or credit card. Since you'll have a lower interest rate with a balance transfer, more of your monthly payment will go toward reducing your credit card balance, instead of towards interest. You may even be able to pay off your balance completely by the time the promotional period ends.

Consolidate your debt
If you have several loans or credit cards, a balance transfer could save you from having to make multiple payments each month, simplifying your payments and giving you less to keep track of each month. It’s usually easier to pay off one credit card balance than it is to pay off several. 

A balance transfer credit card could be a good option, especially if you are struggling to keep track of multiple payments and want to simplify your debt. Here are a few things to look out for:

Introductory rates and terms
Many offers include a low or 0% introductory interest rate for balance transfers, which reduces or eliminates monthly interest charges on your balance transfer for a certain term, often six months to a year. This can help you pay off your credit card balance faster because your payments are going directly to principle. After the introductory term, the card’s interest rate generally returns to its regular rate. It is important to make sure you are comfortable with the card’s interest rate once the introductory rates and terms expire.

Annual Fee
Annual fees are one of the most common credit card fees. Ranging from $25 to $500, annual fees are automatically charged to your account once a year. Be on the lookout for cards with no annual fee.

Balance transfer fees
A balance transfer fee is a one-time fee paid when you transfer a balance. It is important to know what the transfer fee will be before you accept the offer.

Credit card balance transfer offers can be a great way to consolidate debt and help you save money on interest. If you have multiple balances, look for balance transfer opportunities that offer a low introductory APR and a good length of time under the introductory APR with low or no balance transfer fees.  Shop for an offer with confidence by fully understanding the rates, terms, and conditions of the balance transfer credit card. Please visit our Credit Cards page to learn more about DCCU's current balance transfer offer.

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