Three Benefits of a Balance Transfer
A balance transfer is a great way to help jumpstart your financial freedom and can benefit the future of your financial wellbeing. Read these benefits below to find out if a balance transfer might be the right move for you and your financial wellness.
Lower interest rates. When applying for a balance transfer, typically the rate being offered is much less than the rate on your current credit card or loan. While the rate may change after an introductory period, it may still be substantially more than the original interest rate. This allows you to accrue less interest and pay more on the principal balance while also saving money in the long run.
Consolidating your debt. Consolidating your debt into one payment is easier to manage, and often offers a lower monthly payment than paying each bill individually. No longer are you needing to remember several due dates or be at risk for potential bank overdrafts for automatic payments that may have been forgotten.
Boost your credit score. Credit scores are based off various factors, including payment history, length of credit, credit utilization, and more. When you’re approved for a balance transfer, the additional account can help lower your overall utilization and give your credit score a boost. You will also receive a bump if you’re able to pay your balance off sooner due to the lower interest rate.
Don’t let high balances or interest rates keep you from your financial potential and use a balance transfer to give you a goal in sight. The benefits outweigh the risks, and your future self will be thankful for the decision.
If you’re looking to consolidate your debt and get back on track, UNCLE Credit Union offers a variety of credit cards with competitive terms and benefits, including no annual fees. Now until October 25, 2021, UNCLE is offering as low as 0.00% APR* on credit card balance transfers for 11 months. Start back-to-school season on the right foot and be on your way to financial freedom. Learn more at: www.unclecu.org/balance-transfer.