What is a Balance Transfer?

While the recession caused by the coronavirus pandemic began to spread across the world, the average US credit card balance dropped by 14% to $5,338 from January to May of this year.

That’s still a huge sum, though — and one of the methods you can use to handle a big credit card debt is to make a balance transfer.

In the simplest of terms, a balance transfer enables credit card holders to carry over their debts from one card to another, usually on better terms. Credit cards intended for balance transfers also give a low introductory interest rate on the debt transferred for a limited period of time. This helps people who make a balance transfer make up for their payments, without having to think about interest.

If you’re in a good financial situation, for example, you have a stable income, a good credit score, and your credit card balances are moderate, shifting your high APR balance to a lower APR credit card, so you can save money and pay off more easily, is a wise decision.

However, if your debt issue is too high, a balance transfer might make it worse. While balance transfers offer temporary relief from high interest rates, they often worsen the problem by giving you more credit than you’ll end up using when money gets tight. See if using a personal loan from RMLEFCU will help you pay off your high interest credit card on better terms.

At Rocky Mountain Law Enforcement Federal Credit Union, we recognize that customers are juggling the uncertainty of the global pandemic and ongoing attempts to achieve financial stability and prosperity. Applying for a VISA Platinum Select and move your funds could be the best way to handle your finances. RMLEFCU’s Platinum VISA Select has 6.75% APR* without any balance transfer fees, cash advance fees or annual fees.

If you would like to open a VISA Platinum Select credit card or move your balance, please call us at 303-458-6660 or email us at lending@rmlefcu.org. We’re going to be able to help you get your finances back on track.