Skip to main content

Mainstreet Credit Union, Lenexa, KS

  • Accounts & Services
    • Savings
    • Checking
    • Investments
    • Youth Accounts
    • ATM/Debit Card
    • Mobile & Online
    • Visa Gift & Reload Cards
    • Other Services
    • Rates
  • Loans
    • Vehicle Loans
    • Personal Loans
    • Student Loans
    • Credit Cards
    • Home Loans
    • Rates
  • Resource Center
    • My Mortgage
    • My MasterCard®
    • Reorder Checks
    • Advice
    • Auto Avenue
    • Financial Calculators
    • FAQs
    • Other Useful Links
  • Discover Mainstreet
    • About Us
    • Join Us
    • Careers
    • Community
    • The Credit Union Difference
    • Mainstreet Talk
    • Annual Report
    • Locations/ATMs & Hours
    • Contact Us









Routing Number: 301079183

Advice

  • Credit and Debt
    • Credit
    • Debt
  • Money Management
    • Banking
    • Budgeting
    • Saving
    • Spending
  • Family Finances
    • Life Events
    • Insurance
    • Identity Protection
    • Kids & Money
    • Financial Crisis
  • Workplace Finances
    • Employee Benefits
    • Paycheck Planning
    • Retirement Plans
  • Home Ownership
    • Buying a Home
    • Mortgage
    • Home Equity
    • Refinancing
  • Paying for College
    • Saving for College
    • Financing College
    • Repaying Student Loans
  • Retirement Planning
    • Saving for Retirement
    • Social Security
    • Living in Retirement

Should You Transfer Account Balances?

Should You Transfer Account Balances?

Many popular credit card issuers advertise balance transfers as one of the top perks for their card. In fact, you can often find promotional offers of 0% interest on balance transfers for the first year or more after opening the credit card.

Transferring account balances can be a great financial choice for you because you can move the balance from a high-interest rate credit card to one that is not charging you interest at all. That way, your credit card payment will go entirely toward paying down the balance, rather than having to pay the monthly interest first. If you are looking to get out of credit card debt, transferring account balances to a new card can help.

Features to look for on your new credit card

Making the most of balance transfers is largely about choosing the right credit card. There is a lot of competition in the credit card industry, so as long as you have a good credit score, you should have plenty of strong offers from which to choose. Look for several features to help you pick the best new credit card.

  • Zero percent interest on balance transfers: There's no sense in paying interest on your balance if you can get a card that does not charge interest at all.
  • Zero percent interest on new purchases: If you plan to use the card for a planned purchase, see if the 0% interest rate also applies to new purchases.
  • Long introductory period: The promotional interest rate might last only a few months, or it might last longer than a year, depending on the policies for that specific card. The longer the introductory period is, the more time you will have to work on paying down your balance without paying interest.
  • Low balance transfer fees: Ideally, you would get a credit card with no fees for balance transfers. However, that is rare these days. Know what percent of the balance transfer amount you will be charged as a fee, and choose a card with a low percent.

Make sure balance transfers do not hurt you

Overall, transferring your balance can be a wise financial move if you handle it correctly. However, there are a few things that could hurt you in the long run if you are not careful. Pay attention to each of these factors to protect your credit and your personal finances.

  • Work on reducing your debt: Some people use balance transfers as a way to free up available credit and spend more. Remember that you will eventually need to pay off all your purchases. If possible, don't charge any new purchases to your old credit card or the new one.
  • Make your payments on time: Credit cards are allowed to charge you a penalty interest rate if you miss payments. This interest rate could be shockingly high, especially if you were expecting to not pay any interest. Set up automatic payments or payment reminders to help you stay on schedule.
  • Know the effects on your credit score: Be very careful with balance transfers, especially if you establish a pattern of moving the balance to a new card again and again. Each new card will negatively affect your credit score. In addition, keep your ratio of the outstanding balance to credit limit as low as possible. That goes for all of your credit cards.
Copyright

Related Content

Article

What Your Credit Score Means
0
Understanding Your Credit Report
0
Building a Credit Reputation
4
Boosting Your FICO Score
4
Understanding Credit Costs
0
Choosing a Credit Card
2
Living a 'Credit-Free' Life
0
Good Reasons to Borrow Money
0
Disputing a Credit Card Transaction
0
Should You Transfer Account Balances?
0
How Many Credit Cards Should You Have?
0
About Those Interest-Free Offers
0
Watch Out for Payday Loans
0
Cosigning a Loan
0
Alternatives to Pay Day Lenders
0
Vehicle Financing Options
0
Using a Personal Line of Credit
0
Lower Your Credit Card Rate
0
Secured vs. Unsecured Loans
0
Your Annual Credit Report Review
0
Evaluating Credit Card Reward Programs
0

Financial Tool

Calculate a Vehicle Payment
5
Low Rate or Cash Back?
2
Compare Two Vehicle Loans
0
Compare Vehicle Loans by Term
0
Are Credit Card Balance Transfers Worth It?
0

Poll

In the last six months, have you missed or been late on a credit card payment?
5
Which do you use most frequently for payments?
0
What type of reward do you receive on your most used credit card?
0
Is your credit card balance higher or lower than it was a year ago?
0
How many credit cards do you have?
0
Do you know your FICO score?
0
Do you make everyday or unnecessary purchases on credit?
0
When you make your monthly credit card payment, do you most frequently:
0

Mainstreet Credit Union, Lenexa, KS


  • Careers
  • Security
  • Privacy & Disclosures
  • NMLS Lender ID#: 465931




©

Mainstreet Credit Union.

Equal Housing Lender


You will be linking to another website not owned or operated by Mainstreet CU. Mainstreet CU is not responsible for the availability or content of this website and does not represent either the linked website or you, should you enter into a transaction. We encourage you to review their privacy and security policies which may differ from Mainstreet CU.