Imagine you open your credit card statement only to find that your balance has skyrocketed due to an interest rate increase. You know you should reduce your debt, but where do you start? This is a prime example of when balance transfers could come in handy.
In this article, we will explore what a balance transfer is and why it may be worth considering if you struggle with credit card debt. If you want to streamline your budget, continue reading to learn more.
What are balance transfers?
A balance transfer is when you transfer existing credit card debt to a new card with lower interest. Approximately 44% of Americans have used balance transfers in the past five years, saving thousands of dollars simply by switching to a card with a lower annual percentage rate (APR).
Additionally, you can use it to consolidate your balances into one monthly payment. Reducing your number of outgoing bills will help you more thoroughly manage your finances. Plus, imagine all of the time it will save too.
Things to know before getting a balance transfer
Before applying for a balance transfer, there are a few things to consider.
Your current APR – To make an effective switch, you should know what you pay in interest vs. what the new card will offer.
Your total combined debts – Add everything you want to transfer and ensure it does not exceed your available credit line. You do not want to max out your new card right away.
Annual and transaction fees – It is important to evaluate the costs of the new card as a whole. Just so you know, Achieva offers credit cards with no annual fee and no cash advance fees.
After-offer interest rates – Compare the promotional rate to the final rate that will take place after the promotion ends. If you start while the offer is new, you will have the most time to take advantage of the deal.
Terms and conditions – While most companies publish this information online for easy access, others might not. It may require more digging around to determine how much money you will pay at the end.
An exciting offer from Achieva
Take charge of your credit card interest. Get 0% APR* on balance transfers until June 2024 by applying for an Achieva Cash Rewards Mastercard! After that, your qualified APR of 11.50-23.50% will apply.
As mentioned above, balance transfers are a great way to save money on your credit card debt. Plus, if you apply today, you’ll receive up to 1.5% cash back on all purchases with your new card. For details, visit www.achievacu.com/cashrewards.
