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Can a balance transfer cut debt?

Bankrate Audio » Balance Transfer Cut Debt

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If you're looking to pay down credit card debt, one option is a balance transfer credit card.

A credit card that offers a zero percent interest rate on balance transfers can be an efficient way to pay down debt. But the move can backfire if you're not careful. I'm Leslie McFadden with your Bankrate.com Personal Finance Minute.

A balance transfer card is only a good idea if it's going to help you aggressively pay down your credit card debt.

Before signing up for one of these cards, factor in the cost of doing the balance transfer. The key details to consider are the introductory interest rate, the length of the introductory period, the APR after the initial interest rate expires, the balance transfer fee and your new minimum payment. Balance transfer fees are often 3 percent of the amount being transferred.

Make sure your credit is good enough to qualify -- many balance transfer cards require good to excellent credit. To see if you're even in the ballpark, try the free FICO score estimator on Bankrate.com.

To learn more about balance transfer credit cards, visit Bankrate.com. I'm Leslie McFadden.

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Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.

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Product Rate Change Last week
Balance Transfer Cards 18.49% --0.00 18.49%
Cash Back Cards 17.15% --0.00 17.15%
Low Interest Cards 12.45% --0.00 12.45%
 
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