Take Control of Your Debt with a Credit Card Balance Transfer

Are you struggling with credit card debt? You’re not alone — about 60% of Americans are in the same boat. It happens to the best of us: balances grow faster than expected, and before you know it, keeping up with monthly payments becomes difficult. Combine a high balance with steep interest rates, and it can feel like a never-ending cycle of just paying the minimum.

If this sounds familiar, don’t be too hard on yourself. What you need is a solution — a way to pay off your debt at a more affordable rate. Imagine consolidating your debt into one manageable payment. Sounds good, right? At Honor Credit Union, we’re here to help! Here’s everything you need to know about credit card balance transfers.

What Is a Balance Transfer?

A balance transfer lets you move your current credit card balance to a new card, ideally with a lower interest rate. With an Honor Select Card or Select Rewards Card, you can reduce your monthly payments and start paying down your balance faster. This strategy simplifies your finances, especially if you’re juggling multiple credit cards.

How Does a Balance Transfer Work?

1. Apply for a Credit Card: Start by applying for one of Honor’s credit card options.
2. Get Approved: Once approved, we’ll work with you to collect the necessary details. Fill out the balance transfer form to get started.
3. Transfer Your Balance: Honor will send a payment directly to your current creditors, transferring your balance to your new card.
4. Make Payments: Begin making payments on your new Honor card — typically with a lower rate and better terms.

Choosing the Right Credit Card for a Balance Transfer

When comparing cards for a balance transfer, keep these three key factors in mind:

1. Interest Rate: Look for a low or promotional rate on balance transfers. Be sure to understand what the rate will be after the promotional period ends and aim to pay off the balance before it increases.
2. Balance Transfer Fees: Some cards charge 3–5% of the transferred amount. Honor’s Select and Select Rewards Cards have no balance transfer fees — ever.
3. Annual Fees: Avoid cards that charge an annual fee. None of Honor’s credit cards include annual fees because we believe in helping you reach your financial goals, not adding to your costs.

Should You Use the New Card Regularly?

This choice is completely up to you. However, if your goal is to pay down debt, it’s best to use your new card sparingly — or not at all — until your balance is under control.

The Benefits of a Balance Transfer

A balance transfer can be a game-changer for tackling high-interest credit card debt. Here’s how it helps:

• Faster Debt Repayment: Pay off your balance sooner with a lower interest rate.
• Simplified Payments: Manage one monthly payment instead of several.
• Improved Credit Score: Lowering your overall debt can boost your credit score.