Consolidate debt and reduce interest costs with a credit card balance transfer.

If you’re feeling the squeeze of high interest rates on credit card debt, now is a good time to explore a balance transfer in order to save money. Let’s take a look at how balance transfers work and what you need to know to make a smart choice.

What are credit card balance transfers?

A balance transfer means moving what you owe on one or more credit cards to a different one. Usually, but not always, this means opening a new account.

Balance transfers are one of the simplest ways to consolidate debt and reduce interest costs on credit card debt. However, you need to do your homework before taking advantage of a balance transfer offer.

Carefully read credit card offers

At first glance, 0% interest on balance transfers looks like a good deal. If you see such an offer, read the details carefully. All of them. The no- or low-interest period will apply only for the introductory period; it could be a few months or even 1½ years.

It’s very important to know what the interest rate will be after the introductory period. The rate could be very attractive or it might be more than what you’re paying now. Check details before you apply for a new card.

How much will a balance transfer save?

The only way to determine if a balance transfer will save money for you is to run the numbers. To compare offers against your current credit card, use our credit card repayment calculator.

Some, but not all card issuers charge a balance transfer fee, which can be 3% to 5% of the amount you transfer. Take this into account when doing your calculations.

How long will a credit card balance transfer take?

According to Experian, most balance transfers are complete within five to seven days, but some card issuers take up to 21 days.

Balance transfers are handled differently from lender to lender. Some transfer funds electronically while others issue checks.

Questions to ask before you make a balance transfer

• What’s the interest rate and how long will will it apply?
• What’s the interest rate after the introductory period is over?
• Is there an annual fee for the credit card? If so, how much?
• Is there a time limit on balance transfers in order to get the introductory rate?
• Will the credit limit cover the amount you want to transfer?
• Is there a limit on the balance transfer amount?
• Is there a fee to make a balance transfer? If so, how much is it?
• How are transfers handled and how long do they take?

Pay very close attention to your payments

After you make a balance transfer, make sure payments are made on time. Missing a payment due date by even a day could mean the loss of your zero- or low-interest introductory rate and late fees.

Also, if you make purchases on your new card and don’t pay them off in full each month, you’ll start racking up interest charges. Interest charged on new purchases will almost certainly be higher than the introductory rate for balance transfers.

Make a balance to transfer to a Consumers account

If you don’t yet have a Consumers personal Mastercard®, check out our current balance transfer offers.

Apply online for a Consumers Mastercard credit card today.