What to Consider Before You Do a Balance Transfer

Are you carrying debt on a high-interest rate credit card? Maybe you accepted an offer for 0% financing when you got new flooring and now the rate has gone up? A balance transfer to a lower rate card with fewer fees may help you pay off your debt faster and save you money in the long-run.

Check your current rates.

Before you transfer balances, look at what are you currently paying or what will you pay after a promotional rate ends. If you’re paying a high-rate or will be faced with back-interest and a high rate after a promotional period, you may benefit from transferring the balance to a lower-rate card.

At Dominion Energy Credit Union, new cardholders enjoy 0% APR* for the first 12 months and then a low variable rate based on your credit qualifications. Our balance transfer fee is also lower than most places – just 2% or $10 (whichever is greater). 

Keep Making Your Payments

Remember, balance transfers can take some time process. You should keep making any payments to your current accounts until you can confirm that the transfer has gone through.

Make a Plan to Pay Off Your Debt

Once you transfer your balances to your new card, make a budget and payment plan to pay off your debt. One way to do this is by applying the money you save each month to your balance to pay it off faster. Monitor your spending and commit to not running up your debt again.

* Annual percentage rate. 0% APR valid for new cards for all transactions for the first twelve months. The introductory rate is not valid on existing Dominion Energy CU balances. After the introductory period, the rate will return to the variable rate for which you qualify. View current rates and credit card agreement and disclosure for details.

Source: https://www.investopedia.com/ask/answers/111714/when-balance-transfer-good-idea-paying-debt.asp and https://www.nerdwallet.com/blog/credit-cards/balance-transfer-3/