Credit cards can be an effective way to earn cash rewards and pay for purchases later. 然而, when balances begin to build up on these cards, consumers can be faced with high interest rates and unforgiving terms.

According to CNBC, nearly half (47%) of U.S. adults, or about 120 million people, currently have credit card debt. So, 如果你是统计数据的一部分, 元素 is here to provide trusted advice on how a balance transfer may be beneficial to you – potentially saving you hundreds of dollars over the course of your payments. 

关键问题

Our financial experts have identified these questions as our most commonly asked by our members:

什么是余额转账?

When you move credit card debt from a card with a high interest rate to a different card with a lower interest rate and better terms, 这叫做余额转账.

How can a balance transfer save me money?

Let’s say you’ve accumulated a large amount of debt on a card with a high annual percentage rate (APR), so transferring that balance to a credit card with a significantly lower interest rate means more of your payment will go to your principal. So, instead of the majority of your monthly payment going toward interest, more goes toward paying down your true debt.

Will I pay any fees for a balance transfer?

Many financial institutions charge a fee for initiating a balance transfer which is often in the range of 3% to 5%. 然而, 元素 offers multiple credit cards that have no balance transfer fee – a unique offer thanks to our not-for-profit credit union status. 在其他机构中, you’ll need to calculate the amount of cash you can save by reducing your interest rate. Then, take time to consider if paying the balance transfer fee is worth the interest rate savings.

比较我们的信用卡

How do I start the balance transfer process?

While each financial institution’s process is different, 元素 makes the balance transfer process easy. 简单的 请利记的客户支持团队 or visit your favorite 元素 branch and our financial experts will guide you through applying for a card and moving the balance from another bank or credit union.

重要的注意事项

Before starting the balance transfer process, it’s important to ask yourself:

Am I qualified for the promotional rate?

Much of the savings from a balance transfer comes from an initial promotional rate that’s offered for a short period of time. 在申请卡之前, be sure to understand what you must do to qualify for that special rate.

Will I save money with the post-promotional interest rate?

While a low promotional interest rate can catch your eye, ensure that the rate that follows will be lower than the rate you’re currently paying. It’s best to pay as much of the balance off as possible during the promotional period, but a much higher post-promo rate could lead you into paying significant interest in the future.

What should my credit usage look like after the transfer?

正如我们在 控制你的信用 建议文章, it’s critical to keep your credit usage lower than 30% to maintain or improve your credit score. 例如, 如果你的信用卡限额是5美元,000, you’ll need to maintain a balance of $1,500 or less to keep your score in check. It’s especially important to consider this factor if you’re thinking about combining the balances of two existing credit cards to acquire the lower rate.

Is my credit card spending under control?

It’s critical to understand your spending patterns before even considering opening a new credit card. If you are prone to using your full credit limit on the cards you already have open, think about how increasing that total credit card limit could impact you. 探索我们的 善用信用卡 建议文章 for more tips on wise usage of cards. If you’re confident that you won’t rack up more debt, a balance transfer might work in your favor.

接触元素开始

有问题或需要可靠的建议? Our credit union experts are always here for you. 联系要素 for support in all aspects of your financial life.

This information is provided for informational purposes only. It does not constitute legal, tax or financial advice. Consult with your tax, legal or financial adviser before taking any action.