5 Things To Know About Credit Card Balance Transfers

image of a man with curly brown hair smiling while holding up an honor credit union credit card in one hand and a bank credit card in the other hand with text on the image that reads 5 things to consider when doing a balance transfer

It happens to people all over the country. You get a student loan, and the next thing you know, you’re getting offers for credit cards. They all make their rewards sound so good that you sign up for one, or two, or ten. Next thing you know, it’s a couple of years down the road, and you’re drowning in credit card debt. It can feel like there’s no way out.

It may feel hopeless, but it’s not. We’re here to help. For many people, a balance transfer is the right tool to get back on their financial feet. Here’s what you need to know:

What Is A Balance Transfer?

A balance transfer is pretty simple. You just use one credit card to pay off one or more of your other cards. The trick is to transfer from your high-interest cards to a low-interest alternative. This means more of your monthly payment goes toward getting you out of debt.

How Does A Balance Transfer Work?

With Honor Credit Union, the balance transfer process starts when you apply for one of our credit card options. Once you’re approved, we’ll work with you to gather a few details and send a payment directly to your other creditors. Then, you just keep making the payments on your new card.

photo of a woman sitting at a table looking at a tablet device

Consider An Honor Balance Transfer

Start paying off your credit card debt faster with an Honor balance transfer. Our online form takes minutes to complete for members and non-members.
Get Started

Choosing The Right Credit Card For A Balance Transfer

When you’re shopping for a card to transfer your balance to, there are three factors to consider.

Interest Rate

Choose a new credit card with a low-interest rate. Or, look for a card that’s offering an extended period such as 12 months with no interest on the balance transfer itself. Even if you have plans to pay off the balance during the introductory period of zero interest, do yourself a favor and review what your interest rate will be beyond this timeframe as well.

Balance Transfer Fees

Some cards charge high fees for balance transfers such as 3-5% of the total transferred balance. These fees can add hundreds of dollars to your debt, so it’s important to look for a card option that has no balance transfer fees at all times, such as Honor’s Select and Select Rewards options.

Annual Fees

If you’re in the market for a balance transfer, avoid cards that charge an annual fee, period. Your goal is to pay off high-interest debt, not add to it, and adding an annual fee should not be part of that strategy. Here at Honor, we want what’s best for our members, so not a single one of our card options carry an annual fee.

Should You Use The New Card Regularly?

This is entirely up to you, but if you’re struggling with debt, we recommend that you use your new card as little as possible in an effort to shrink your existing debt.

The Benefits Of A Balance Transfer

Using a low-interest balance transfer to get rid of your high-interest consumer debt makes sense. You’ll get out of debt sooner, have just one payment, and may even improve your credit score.

The big credit card companies make all their decisions with computers and algorithms. At Honor Credit Union, we’re different. When you apply to transfer your balance to an Honor credit card, you work with a real person who is here to listen to your story and offer advice. We’re here to put you on the road to financial success. If you feel like you’re drowning in credit card debt, Honor’s balance transfer option may be the lifeline you need. Apply online or give us a call today at 800.442.2800!

— Balance Transfer Special —

SLIM DOWN YOUR DEBT!

0% APR*
ON TRANSFERS FOR 12 MONTHS!

Get Started
  • Transfer a balance to an Honor credit card & pay no interest for 12 months!*
  • Transfer multiple non-Honor card balances
  • No balance transfer fees
  • Get started by filling out our simple & secure online form

*0%APR promo rate applies to balance transfers of $500 or more to an Honor Credit Union Credit Card from a non-Honor Credit Union credit card. Purchases and cash advances excluded. Balance transfers must be completed by March 31, 2022. Rate is valid for 12 billing cycles from posting date of first transfer, after which the introductory period ends, the standard purchase APR applies. Standard variable APR: 8.49% to 25.00%, based on your creditworthiness and other factors. The annual percentage rate (APR) will vary with the market based on Prime Rate. New and current cardholders eligible. Credit card approval depends on creditworthiness and other qualifications. Rates, terms and conditions are subject to change without notice. Insured by NCUA.

stick figure woman looking at a document

*0%APR promo rate applies to balance transfers of $500 or more to an Honor Credit Union Credit Card from a non-Honor Credit Union credit card. Purchases and cash advances excluded. Balance transfers must be completed by March 31, 2022. Rate is valid for 12 billing cycles from posting date of first transfer, after which the introductory period ends, the standard purchase APR applies. Standard variable APR: 8.49% to 25.00%, based on your creditworthiness and other factors. The annual percentage rate (APR) will vary with the market based on Prime Rate. New and current cardholders eligible. Credit card approval depends on creditworthiness and other qualifications. Rates, terms and conditions are subject to change without notice. Insured by NCUA.

More To Explore

image with a blue background with white text that reads honor credit union black friday tips

Tips For Smart Black Friday Shopping

Whether you’re planning to shop in store or online, these Black Friday shopping tips will help make sure that you get the most out of your holiday budget.