If you suddenly find yourself struggling to pay off credit card debt and your credit score is good, there’s an option you can consider: balance transfer. This is a process that allows you to move debt from your current cards to a different one. It is a great way to help you consolidate your bills and pay off your debt faster.
Before pursuing this route, however, you must carefully assess your financial situation and look at the benefits of balance transfer as well as its potential drawbacks. To help you make a sound decision, let’s explore how it can help with debt and finance management.
Pay a Lower Interest Rate
The biggest and most important benefit of balance transfers is the ability to get a lower APR than you currently have, which means you will pay less interest. You will bring down your debt faster since more of every payment you make directly reduces your outstanding debt total. If the lower rate is a promotional offer, it is best to get the balance paid off before it ends.
Simplify Finances by Consolidating Multiple Credit Card Debts
Depending on the credit limit of your new card, you may be able to transfer multiple debt balances to your new one up to the limit. Then you can more easily track and handle your finances and debts since there will be no more varying due dates and minimum amounts due.
Take Advantage of Better Terms and Perks
If your current credit card offers rewards that you don’t use, it’s not only wise but also practical to choose a new one with perks that will actually help you. These include, but are not limited to, cashback, travel, merchandise, and discounts.
Improve Your Credit Score
When you transfer your balance, your credit score may improve by lowering your utilization percentage or the part of the credit used from your total available limit. You’ll have more available credit from opening a balance transfer credit card and will pay off your balance without adding interest.
Make Purchases While Saving Money and Earning Rewards
Apply for a Heartland Credit Union Mastercard to take advantage of low rates, no annual fee, fraud protection, and many more great features. Contact us today to learn more about what we offer.
