Transferring a credit card balance is a popular way to manage debt. You’ll save by moving from a high-rate card to one with a lower rate. It also simplifies your finances. You’ll have just one payment and one due date to keep track of, reducing the chances of missing a payment and facing late fees or penalties.
Before you make your move, however, investigate the terms of the deal. Here are some key questions:
- Is there a fee? That could wipe out any savings you get from a reduced rate.
- Is the rate different for transfers than for purchases? Your payments could be applied to the lower-rate balance first, leaving the higher-rate debt to grow.
- How long will this rate last? A very low rate often is good for a limited time. Also, store cards typically only defer interest. If you have a balance at the end of the promotion period, you’ll get charged as if the deal never existed.
A Hanscom FCU Platinum Credit Card can help you save and simplify. There are no transfer fees, and rates are the same for transfers and purchases. Your rate is based on your credit profile, not a temporary time period.