If you’re juggling high-interest credit card debt, you’ve likely wondered if a balance transfer is the right move. At Houston Police Credit Union, we believe in keeping things simple. A well-planned balance transfer can be a powerful tool for your financial future, especially with our low-rates and zero percent transfer fees.
What is a balance transfer?
A balance transfer is the process of transferring your high-interest credit card balance at one financial institution to a card with a much lower interest rate at another. By reducing the interest rate, more of your money goes toward the actual credit card balance rather than the interest. Paying less interest means you can pay off the total amount much quicker, saving you significant money over time.
Is a balance transfer right for you?
Before you make the jump, take a quick look at your current credit card debt. The goal is to move the needle in your favor. If a new institution offers a rate higher than what you’re currently paying, stay put! Moving debt to a higher-rate credit card will only increase your payments and keep you in debt longer.
The second thing to watch out for is hidden fees associated with the process of transferring your balance to another financial institution. Many financial institutions will charge a percentage fee just to move your money over. At Houston Police Credit Union, the balance transfer fee is zero percent, offering a fee-free move.
See the Difference
The graphs below illustrate the impact of a lower rate. Assuming no extra charges are being made, and you are making payments to the card in a span of 60 months, the graph on the left shows how much interest you would pay on a high-rate credit card, and the graph on the right shows how much interest you would pay on a low-rate Houston Police Credit Union credit card.
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The graphs show that with a lower credit card rate, the interest charges change significantly. Before making the switch, it’s essential to compare the numbers to ensure a balance transfer works in your favor. Take control of your credit card debt by transferring your balance to Houston Police Credit Union. To learn more about how to transfer your balance, click here.
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*APR = Annual Percentage Rate. Examples provided are for illustrative purposes only and may not reflect your individual terms. Rates and terms are subject to credit approval. Please consult with a Houston Police Credit Union representative for personalized information and current rates.
