Balance Transfer

Dealing with Credit Card Debt [00:00]Elapsed Time 0 minutes 0 seconds

When you're dealing with credit card debt, it can sometimes feel like there's no end in sight.

But a balance transfer might help you manage your debt, pay it off faster and even save some money.

What Is a Balance Transfer? [00:13]Elapsed Time 0 minutes 13 seconds

So, what is a balance transfer?

Typically, it's when you move the amount of money you owe on one credit card to another card in order to get a lower Annual Percentage Rate.

This could help you pay off your debt faster and cut down the amount of interest you'll eventually pay.

Key Things to Consider [00:29]Elapsed Time 0 minutes 29 seconds

Before you sign up for a balance transfer, there are a few key things you need to consider.

Understand the fees, along with the terms and conditions. Many transfers include a 3% fee or higher. For $10,000 of credit card debt, that would be a $300 fee.

Also check if the new card has any type of annual or monthly fees, late fees, or other costs associated.

Find out if the offered annual percentage rate is promotional and, if so, how long it will last.

Low promotional rates can help buy you time to chip away at your debt without building up so much interest.

Ideally, you'll want to pay off your balance while the promotional rate is in effect. If that's not possible, make sure you can manage the payments once that promotional rate expires.

Also keep in mind any potential impact to your credit. There are various factors that go into your credit score and opening new accounts or closing old ones could have an impact.

How to Complete a Balance Transfer [01:29]Elapsed Time 1 minutes 29 seconds

If you decide that a balance transfer is right for you, try to maintain or even increase your monthly payments. This can help you pay off that debt faster.

At USAA, you can complete a balance transfer online, over the phone or using the Mobile App.

Tackling your credit card debt could be the first step in reaching your big financial goals.

Could a balance transfer help you take control of your financial future? See what USAA has to offer on this page.