Take Control of Your Debt with a Credit Card Balance Transfer

Are you struggling with credit card debt? You’re not alone—60% of Americans are in the same boat. It happens to the best of us: you don’t realize how quickly your balance is growing, and before you know it, you’re unable to keep up with the monthly payments. Combine a high balance with a steep interest rate, and it can feel like you’re stuck in a never-ending cycle of just paying the minimum.

If this sounds familiar, don’t beat yourself up. 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 allows you to 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 can help simplify your finances, especially if you’re juggling multiple credit card balances.

How Does A Balance Transfer Work?

The process is straightforward:

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 form to start the process.
3. Transfer Your Balance: Honor will send a payment directly to your current creditors, transferring your balance to your new card.
4. Make Payments: You’ll begin making payments on your new Honor card, typically with a lower interest rate and more favorable terms.

Choosing the right credit card for a balance transer

When considering a card for a balance transfer, pay close attention to these three factors:

1. Interest Rate

Select a card with a low interest rate or a promotional period offering little to no interest on balance transfers. While promotional rates are helpful, be sure to review the terms after the promotional period ends. Plan to pay off your balance before the rate increases.

2. Balance Transfer Fees

Some credit cards charge a fee of 3–5% of the total balance transferred, which can add up quickly. Look for options like Honor’s Select and Select Rewards Cards, which offer no balance transfer fees—ever.

3. Annual Fees

Avoid cards with annual fees. Your goal is to reduce debt, not add to it. At Honor Credit Union, none of our credit card options carry annual fees because we believe in supporting your financial success.

Should You Use the New Card Regularly?​

This decision is entirely up to you. However, if you’re focused on paying off debt, we recommend using the new card sparingly, if at all, to avoid increasing your balance.

The Benefits of a Balance Transfer​

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

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