At some point in time, you are likely to receive an offer in the mail. Transfer an existing credit card balance to a new card and receive a promotional interest rate for a set number of months. Are these offers worth it? It depends on the promotional interest rate, the length of the promotional period, what the standard interest rate is once the promotional period expires and what the fee is to transfer your balance from one card to another. During the promotional period, you might be paying a lower rate, or 0% depending on the offer. Are the interest savings greater than the balance transfer fee? Whether they are a good deal or not also depends on how long it takes you to pay off the card balance once you move it to a new card.
Are Credit Card Balance Transfers Worth It?
Are Credit Card Balance Transfers Worth It?
Current Credit Card
Months to Pay Off
34
Total Interest
$ 756
New Credit Card
Months to Pay Off
32
Total Interest + Transfer Fee
$ 486
Under the terms of the balance transfer offer, you will pay off your credit card balance 2 month(s) earlier and save $270 in interest charges over the repayment period.