How to Make the Most of a Balance Transfer

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How to Make the Most of a Balance Transfer

How to Make the Most of a Balance Transfer

Throughout this past year, many of us have had to turn to credit cards to help make ends meet. If you have balances on multiple credit cards, transferring your balances to one card allows you to consolidate your credit card debt and simplify your monthly bills with one easy payment. Ideally, with a much lower interest rate. Transferring your existing credit card balances to one low-interest credit card can help you save on interest payments, pay off your debts faster, and improve your credit score. You can maximize the benefits of a credit card balance transfer by following these tips.

Know Your Balances

In order to maximize your success in paying off credit card debt, you need to know exactly how much you owe overall. Make a list or a spreadsheet of each credit card you have, and include the total balance and the annual percentage rate (APR) for each card.

Do Your Research

Once you know what you’re working with, you can start searching for balance transfer options and comparison shop to find the best deal. Create a list or spreadsheet to help you stay organized. To get an even comparison for each deal, make sure to include the same information for each. Track the APR for each card you are considering, as well as the introductory interest rate if there is any special offer when you first open the account. If there is a special offer, make sure you know what the APR will be once the introductory period expires and when that change will take place. Make sure you also include any fees in your notes, such as a balance transfer fee or annual fee. The fewer the fees, the better. Our Robins Financial Visa® Platinum Rewards credit card has great low rates plus no annual fee or balance transfer fee.

Make a Plan

Once you are approved for the balance transfer, make sure you review all the details. Know how much you are able to transfer. If the amount you were approved for isn’t enough to cover all of your balances, decide which balances you want to transfer and make sure you have a plan for paying off the additional outstanding balances. Make the most of your new lower interest rate by working your debt repayment into your monthly budget. If your balance transfer has a special introductory offer with a lower interest rate, calculate how much you’ll need to pay each month before that rate expires and rolls over to the standard rate. It’s best to get your balance paid off entirely before the rate increases so you can save even more on interest payments.

We are committed to helping our members. Our Visa® Platinum Rewards Credit Card gives you premium purchasing power with no balance transfer fee or annual fee, and we offer convenient payment options to help make your life easier. If you’re considering a balance transfer, check out our Credit Card Payoff Calculator. To find out how much a balance transfer can help you save, give us a call or make an appointment at any of our convenient branch locations. You can apply for our Visa® Platinum Rewards Credit Card online or in Digital Banking. Already have a Robins Financial Visa® Platinum Rewards Credit Card? Simply fill out the Balance Transfer form in Digital Banking to transfer balances to your card.

At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.

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