Let’s be honest, credit card debt can feel like a weighted backpack you just can’t seem to shake off. You make your payments every month, but those high-interest rates gobble up a big chunk of your hard-earned money. It’s a frustrating cycle that many people battle. Looking for the best balance transfer VISA credit card can offer a little debt relief when you’ve found that your interest payments have gotten out of control. Balance transfer is a simple concept that can be the best solution for many in an effort to pay down high-interest credit card debt. If your credit rating is good, the process can be quick and easy. You apply for a credit card with a significantly lower interest rate than your current card, and then transfer the balance from your old card or cards to your new card. Moving multiple credit card balances to one with a lower interest rate can also eliminate the stress of making multiple payments each month.
It’s like pressing a financial reset button. A balance transfer credit card is a powerful tool designed to help you consolidate and pay down your debt more efficiently. However, with so many options out there, how do you choose the best balance transfer VISA credit card for your unique situation?
At Benchmark FCU, we want to help you decide what’s right for you. We’ve put together a detailed look at the seven most important things to consider when you’re shopping for a balance transfer card.
7 Things to Consider When Choosing a Balance Transfer VISA Credit Card
1 The All-Important Introductory APR
APR or Annual Percentage Rate is often the first thing people look at, and for good reason! Many balance transfer cards offer a low introductory APR for a set period. This can be a game-changer. Imagine for a moment that you’re able to stop that cycle of spinning in circles, paying high interest, and never touching your principal. That’s what a low introductory APR period allows you to do.
But here’s the key: the length of this period matters. Some cards offer a short six-month window, while others, like the Benchmark FCU balance transfer VISA cards, can provide a longer, more sustainable period. A more extended introductory period gives you more time to pay down your balance before the standard interest rate kicks in. Before applying, ensure the promotional period is long enough for you to make a significant dent in your debt.
2 The Balance Transfer Fee & Other Fees
While a low introductory rate sounds fantastic, many cards charge a fee to transfer your balance from another card. This fee is typically a percentage of the amount being moved, often ranging from 3% to 5%. While it might seem small, it can add up quickly.
For example, if you’re transferring a $5,000 balance and the card has a 3% fee, that’s an immediate $150 charge. You’ll want to calculate if the interest savings over the introductory period will outweigh this fee. There may also be a high annual card fee in addition to that balance transfer fee. Here’s a little secret. Many credit unions, including Benchmark FCU, offer no balance transfer fee or annual fee on their Visa credit cards. No or low credit card fees can lead to significant savings from day one, making your path to debt freedom even smoother.
3 The Ongoing Interest Rate
Finally, what is the interest rate of the card you are applying for after the intro rate expires? That is an important question. After all, you don’t want to end up with a higher rate than you are currently paying. Once the introductory period is over, the card’s standard APR will apply to any remaining balance. This is a critical point to consider. The national average credit card interest rate is currently around 20%, according to recent data. If you don’t pay off your entire balance during the introductory period, a high standard rate could put you right back where you started.
This is a key area where a local expert, such as Benchmark FCU, excels. Our low-rate credit card options come with competitive, ongoing rates. A Benchmark FCU Visa can help you continue to save on interest long after the introductory period has ended, ensuring your financial progress continues without a hitch.
4 Your Credit Score and Eligibility
It’s important to be realistic about what you can qualify for. The best introductory offers are often reserved for borrowers with good to excellent credit scores. Before you get your heart set on a specific card, take a moment to check your credit score. You can typically obtain a free credit report from one of the three major credit bureaus. Visit AnnualCreditReport.com to request your free credit reports.
Your credit score is like your financial report card, and a good score shows potential lenders you are a trustworthy borrower. If your score isn’t where you’d like it to be, don’t get discouraged. Focusing on on-time payments and keeping your balances low can help improve it over time. Remember, a credit union’s focus is on its members, and we are often more flexible and willing to work with you than a big bank. Tap to learn more about monitoring your credit on our Benchmark site.
5 Additional Card Perks and Benefits
Beyond the rates and fees, what else does the credit card offer? Are there rewards? cash back? travel perks? A simple VISA card might be the ticket if your main goal is to pay down debt without distractions. However, if you’re looking for a card you can continue to use after your balance is paid off, consider a card with rewards.
For example, some of Benchmark FCU’s Visa credit cards offer cashback or rewards points for every purchase. While you’re focused on paying down debt, it’s a good idea to put the card away so you don’t rack up new charges. But once you’ve achieved your goal, these perks can be a nice bonus for everyday spending.
6 The Credit Limit
A balance transfer only works if the new card’s credit limit is high enough to cover the debt you want to transfer. It’s a good idea to know your current total debt before you apply for a new card. If you’re transferring $8,000, you’ll need a new credit card with a limit of at least that much. Remember, some card issuers may not approve you for the full amount you request, so having a little wiggle room in your calculations is a smart move.
7 The Issuer and the Call to Action
Finally, who is behind the credit card? Is it a faceless corporation or a local institution that genuinely cares about your financial well-being? Choosing a balance transfer card from Benchmark FCU means you’re choosing a reliable financial partner, not just a product. Credit unions are member-owned and operated. That means our profits are reinvested in our members in the form of lower interest rates, fewer fees, and personalized service.
Create Better Credit Card Habits
Paying off debt quickly and completely should be the number one goal of a balance transfer. Once you’ve applied for and gotten your lower-interest Credit Card, transfer the balances of those higher-interest cards immediately. Then get started on paying off the balance of the new card. It’s essential to budget and have a plan in place to pay off all your debt during the special rate period. This means making a payment that exceeds the minimum due. Credit card companies like you to carry that balance because it generates more revenue for them in the long run. Don’t get lured in by that minimum payment. The most dangerous mistake to one’s financial health when transferring the balance of higher-interest credit cards to a lower-interest card is continuing to charge up debt.
What’s the answer? Tighten your belt, do without a few luxuries, and refrain from using those paid-off credit cards until you’re debt-free and feel you can be more responsible with your spending. Falling back into your old charging habits is only going to hurt you in the long run and prolong your debt.
Simplify Your Life With the Best Balance Transfer VISA Credit Card
When you’re juggling multiple credit cards and trying to make sense of different due dates and interest rates, it’s easy to feel overwhelmed. A balance transfer can simplify your life by consolidating multiple debts into one manageable payment. It’s an effective strategy, but only if you choose the right card for your needs.
Benchmark FCU offers members low-rate VISA balance transfer credit cards to help them consolidate credit card debt, make essential purchases, and more. We offer competitive rates, no balance transfer fees, and no annual fees.
Ready to take control of your credit card debt?
Apply online today to get started with a low-rate VISA credit card from Benchmark FCU. Tap to view current rates.
Learn more about the benefits of a low-rate credit card in our blog, “Credit in Crisis: How Your Credit Card Can Be a Financial Cushion.”
Read more about balance transfer cards in “Comparing Balance Transfer Credit Card Offers.”