In this article we will show you how to save money with credit card transfer. First, let’s get familiar with some terms.
Balance: the TOTAL amount of money that you owe to the credit card company including all charges and fees.
Minimum Monthly Payment: the minimum amount of money you should pay during a billing cycle in order to maintain your account in good standing.
When you have a credit card balance, your credit card company usually charges an APR (annual percentage rate) that ranges from 14%-24% depending on your credit score and the specific credit card. Suppose you have a credit card balance of $6,000 USD and the APR on your credit card is 16%, if you maintain that balance for a year you would pay an additional $960 USD in interest. We understand that you might not have the money to pay off the balance and avoid those charges, so what if we told you there is another way to avoid those charges without cancelling 100% of the balance?
It is common that credit card companies offer 0% APR for balance transfers for the first 12 months as a way to attract new customers. If you transfer your balance to one of these cards, your APR will be 0% for the promotional period and you will have extra time to pay off the balance while putting money back in your pocket!