When does a credit card balance transfer make sense?
If you’re paying off high-interest credit cards, it can feel like you’re barely making a dent in your debt.
But there might be a way out.
When used correctly, a credit card balance transfer can help you save money on interest charges—and put you on a path to paying down debt.
Learn how a balance transfer works and what to consider with this money move.
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How a credit card balance transfer works
With a credit card balance transfer, you move your credit card balance (or balances) to another credit card account.
This works best when you can move one or more high-rate credit card balances to a lower-rate credit card. (Hint: A lower interest rate means you can put more of your money toward paying off your balance!)
Each balance transfer works differently. But here’s what you can expect when you transfer your balance to a Dupaco credit card:
- Step 1: If you don’t have a Dupaco credit card, you’ll need to apply and be approved first.
- Step 2: Once you have your Dupaco credit card, you’ll need to have the credit card you’re transferring a balance from and its most recent statement handy.
- Step 3: Transfer your high-interest credit card balances to your Dupaco credit card. (Hint: The amount you transfer can’t exceed your available credit limit. If you need to increase your limit, you can apply in Shine Online or Mobile banking.)
- Step 4: Start paying down your balance.
Apply for a Dupaco Visa credit card >
Benefits of a balance transfer
So, is a balance transfer a good idea? Here are some benefits to consider:
Low-interest debt
The biggest reason to do a balance transfer is to pay less interest on your debt.
Convenience
By moving multiple balances to one card, you could enjoy the convenience of combining multiple payments into one each month.
Motivation
Cutting costs on repaying your credit card balances could motivate you to save money in other areas too! A free Dupaco Money Makeover could help you uncover more ways to save.
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Know the potential drawbacks
You might be wondering: Is there a catch to balance transfers? There are some potential drawbacks you should be aware of. Here’s what to keep in mind:
Increased interest rate
A credit card that offers a lower interest rate is enticing. But many times, the lower rate is for a limited time. So, it’s important to know your rate after that introductory period. Your goal? Pay down as much of your balance as possible before the higher rate kicks in.
Transfer fees
Many credit card companies charge a fee to transfer your balance. (Hint: Dupaco’s credit cards don’t charge balance transfer or annual fees!)
Qualifications
If you’re opening a new credit card, your application will need to be approved. A variety of factors, including your credit score, will be considered.
Get the most out of a credit card balance transfer
If the pros outweigh the cons, here are some tips to help you get the most out of your credit card balance transfer:
Shop around
If you need to open a new credit card, find one worth opening. Look for a credit card that offers a low introductory rate. Remember to watch for balance transfer fees and other fees too.
And consider other perks that might be important to you, like fraud-prevention tools, easy account access and more.
*For existing cardholders, the 2.90% annual percentage rate (APR) balance transfer promotional rate is valid for balance transfers that post to your Dupaco Platinum Visa between September 1, 2024 and November 30, 2024. The 2.90% promotional annual percentage rate (APR) expires six months from the date of your first balance transfer, at which time the APR will revert back to the current standard APR, which effective 10/01/2024 is a variable rate from 13.75% APR to 20.75% APR, based on your creditworthiness.
Must be an existing cardholder and the Visa credit card account must be in good standing to qualify. “In good standing” means the Visa credit card account is not over-the-limit or delinquent. All Visa APRs will vary with the market based on the Prime Rate.
There is a grace period on purchases, and no annual fees or participation fees. Other fees include: cash advance fee-$3 or 1.50% of the amount of each cash advance, whichever is greater (maximum of $15); foreign transaction fee-1.00% of each transaction in US dollars; late payment fee is $15.00 or the minimum due, whichever is less if you are four (4) or more days late; returned payment fee-up to $25. Offer valid only on Dupaco Platinum Visa. This offer is available September 1-November 30, 2024.
For new cardholders, the 2.90% annual percentage rate (APR) balance transfer introductory rate is valid for new cardholders’ balance transfers that post to your Dupaco Platinum Visa during the first 90 days following the opening of Dupaco Platinum Visa. The 2.90% introductory annual percentage rate (APR) expires six months from the date of your first balance transfer, at which time the APR will revert back to the current standard APR, which effective 10/01/2024 is a variable rate from 13.75% APR to 20.75% APR based on your creditworthiness. All Visa APRs will vary with the market based on the Prime Rate. There is a grace period on purchases, and no annual fees or participation fees. Other fees include: cash advance fee-$3 or 1.50% of the amount of each cash advance, whichever is greater (maximum of $15); foreign transaction fee-1.00% of each transaction in US dollars; late payment fee is $15.00 or the minimum due, whichever is less if you are four (4) or more days late; returned payment fee-up to $25. Offer valid only on Dupaco Platinum Visa.
Make a plan
Review your budget so you can make a realistic plan to pay off as much debt as possible before your introductory offer expires. If you don’t pay off the debt in that time, you might pay an even higher interest rate than before.
5 tips to stay within your budget with credit cards >
Automate it
Once you transfer your balance, consider automating your credit card payments. This will help you make sure your payments are made on time, every time. (On-time payments impact your credit score!)
Pay your balance in full, or as close as you can, each month.
Even if you don’t pay your balance in full, a balance transfer still might be beneficial. Everyone’s financial situation is unique, and Dupaco can help you decide which option is best for you.
