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Opting for a balance-transfer credit card can help improve your financial situation in a variety of ways.
What is a Balance Transfer?
How Does a Balance Transfer Work?
When you find one, youll need to apply and get approved.
Do note, most balance-transfer cards require you to have a good to excellent credit score.
This is a FICO Score of 670 or higher on an 850-point scale, according to Experian.
Upon approval, some credit card companies will require you to pay a balance-transfer fee.
This is typically 3% to 5% of the debt being transferred, according to Experian.
However, some issuers dont charge a balance-transfer fee.
When is a Balance Transfer a Good Idea?
Opening a balance-transfer credit card can be a smart move for a variety of reasons.
Heres a look at three reasons to consider applying for one:
1.
Youre carrying balances on multiple credit cards.
Keeping track of multiple credit card payments can be difficult.
Opening a balance-transfer card can allow you to consolidate your debt, so you only have one monthly payment.
Your credit card has a high APR and a significant balance.
Trying to pay off debt on a credit card with a double-digit APR can feel impossible.
The Navy Federal Credit Union Platinum Card offers a 0.99% introductory APR for 12 months.
You want to improve your credit utilization rate.
If your current credit utilization rate isnt ideal, a balance-transfer card may help improve it.
Seek out a card with a higher credit limit than the credit card(s) youre currently using.
After that, a variable APR between 11.99% and 18% will apply.
Additionally, youll pay no annual fee, no foreign-transaction fees and no cash-advance fees.
Interested in a balance-transfer card?
Its easy to get started here and save money on interest with a Navy Federal Credit Union Platinum Card.
Take your unique financial situation into account before deciding if this move makes sense for you.
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