Should I Get a Balance Transfer?

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Got plenty of credit card debt that’s subject to interest each month? Then you might be wondering about balance transfers — but is a balance transfer a good idea? To find out, let’s consider:

  • How Balance Transfers Work
  • Why a Balance Transfer Might be a Good Idea
  • Why a Balance Transfer Might be a Bad Idea

What is a Balance Transfer?

How does a balance transfer work? It involves taking all or part of the debt you owe one lender and transferring it to another. Essentially, what you’re doing is moving existing debt from one credit card to another. It might sound like an odd idea, but a balance transfer card will usually offer low interest or a 0% interest introductory period on any debt transferred from another card. Advantages that come with balance transfer cards include:

  • Saving Money: If you’ve racked up plenty of debt on your other cards, you could save considerably on the interest paid each month by transferring that debt. You may also be able to find better terms and enjoy another grace period.
  • Debt Consolidation: It’s common for people to have debt across several credit cards, which can mean getting hit by multiple fees. Additionally, it’s tough to keep track of so many payments. Consolidating that debt with a single balance transfer card might be a good idea.

Ultimately, taking out a balance transfer card can help simplify your payments, reduce your monthly charges, and let you get free from debt faster.

When Shouldn’t You Take Out a Balance Transfer?

Balance transfer cards aren’t for everyone. Firstly, you may find it hard to qualify for one if your credit is bad, especially if you’ve used a similar service in the past. You should only consider balance transfer cards an option if you’re already able to make your monthly payments and simply want to cut down on interest rates and fees.

Find Out More About Balance Transfers and Credit Card Consolidation with Xpress Cash

Balance transfer cards can be great, but you might be better off with another debt management option, such as a credit card consolidation loan. Xpress Cash has locations in Michigan, Idaho, and Wisconsin, so visit us today or contact us online for more advice.