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High interest rates on credit cards make it tough to pay off debt. At 15% APR, more than half of every minimum payment you make is used to pay off monthly interest charges. As a result, you make payments month after month, but you never seem to get anywhere. Learning how to transfer credit card balances to another account can help you pay off debt faster. It also helps you save money.
A balance transfer credit card is designed to help you consolidate debt. These cards offer low APR on balance transfers. Many offer zero percent APR during an introductory period if you have good credit. That way, you can move debt from your existing high interest rate cards so it’s easier to pay off.
- First, you apply for a balance transfer credit card.
- You get approved based on your credit score.
- You score also determines if you qualify for a 0% APR introductory offer; these offers range from 6 to 18 months, depending on your score.
- Once you open the account, you can begin transferring your existing balances.
- Each balance you transfer incurs a fee; these range from $3 to 3% of the balance moved.
- With your debt consolidated, you make the largest payments possible to pay it off quickly.
- Ideally, you want to pay off the full balance during the zero percent APR period; this means you can get out of debt interest-free.
- At the end of the…
