Transferring a balance from a high-interest card to one with an introductory APR can be a great way to temporarily prevent interest charges and …
Transferring a balance from a high-interest card to one with an introductory APR can be a great way to temporarily prevent interest charges and to give you more flexibility to tackle your debts. As the Fed continues to raise rates to try to address inflation, regular credit card APRs are also going up. That means any balances that aren’t paid in full at the end of the month are becoming more expensive as the year goes on. Balance transfer cards typically offer a promotional period ranging from six to 21 months. During that time, you can enjoy no interest on your transferred balance as long as you make your minimum payments on time. There’s usually an initial balance transfer fee associated with these cards, but the transaction cost is typically way less than you would incur in interest charges over time. Choosing the best balance transfer credit card depends largely on how much money you owe and how quickly you can pay it off. The best balance transfer cards will provide you with a good opportunity to pay off the credit card balance by the end of the introductory APR period, which can have a big impact on raising or maintaining a good credit score. You’ll need to do some math to use a balance transfer credit card effectively.
