Are you carrying a balance on your credit cards? Do you feel like you are drowning in interest charges? According to the Federal Reserve’s Survey of Consumer Finances, the average credit card debt for families in the U.S. is $6,270. Texas is ranked 6th in the country for credit card debt at $5,848 per person. Debt is a growing problem for U.S. consumers and ALLIANCE is ready to help you break the cycle with a balance transfer.
What is a balance transfer?
A balance transfer lets you move credit card debt from one card to another. Being able to lower interest charges, is one of many money-saving benefits that balance transfers have.
Requesting the Transfer
Although it is called a balance transfer, one credit card company pays off another. Same-issuer transfers are typically not allowed, so you will have to look outside of your current card company. When looking for a company to transfer your balance to, BEWARE of where you look on the internet. Sites like NerdWallet and Credit Karma get referral fees from consumers who apply for a credit card through their website. Credit card companies will also use these sites to draw you in with an interesting but distorted view. Once you find a card with a low-interest rate and transfer fee, there are two main ways to initiate the transfer:
1. Balance Transfer Checks
The new card company supplies the cardholder with a check. The cardholder will make the check out to the card company they want to pay off.
2. Online or Phone
The cardholder will give the new card company their account and balance information to arrange the transfer of funds to pay the account.
At ALLIANCE, we make the process easy.
When looking for a new card, you might notice great introductory interest rates, but they come at a cost. Most credit card companies will charge you a balance transfer fee of 3% to 5%. On top of that, sometimes people find themselves on the hook for unexpected interest charges. Not paying the minimum amount due each month can mean losing the card’s introductory APR, bringing surprise interest charges. At ALLIANCE, we have clear terms and no transfer fees. On top of not having to pay the 3% - 5% to transfer the balance, ALLIANCE offers very competitive rates. You can have peace of mind knowing that you will not have any surprises thrown at you.
The Bottom Line
Transferring your credit card debt from one card to another should only be used as a tool to escape debt faster. Make sure you do your research, check your math, and understand the terms before committing. If you are ready to make the switch to an ALLIANCE credit card, give us a call at 806.798.5554 or apply online today!