How to Transfer Credit Card Balance in 6 Steps & Save Money

Substantial credit card debt can be overwhelming. Between the stress of minimum payments and the higher interest rates, it doesn't take long to feel buried. Many people struggle with credit card debt and find it challenging to break free from the burden of those high-interest rates.

The good news is that there's a solution: balance transfer credit cards. You can pay off your debt faster by transferring your high-interest credit card balance to one with a lower interest rate.

Keep reading to learn how transferring debt from one credit card to another can save you a lot of money.

Why Consider a Balance Transfer?

You might be wondering how to do a credit card balance transfer. Before applying for multiple cards, it's important first to understand the "why."

A balance transfer can be smart if you carry high-interest credit card debt. By transferring your balance to a card with a lower interest rate, you can save money on interest charges and pay off your debt faster. Radiant Credit Union's Visa Platinum Rewards Credit Card is an excellent option for a balance transfer, offering rates as low as 10.99% APR and no annual or balance transfer fees.

Here's how it works: let's say you have a credit card with a $5,000 balance and an interest rate of 20%. If you make only the minimum payment each month, it will take you over 15 years to pay off your debt, and you'll end up paying over $5,800 in interest charges alone.

Imagine transferring that $5,000 balance to the Radiant Credit Union Visa Platinum Rewards Credit Card with a lower interest rate. You could save a significant amount on interest charges over time. Plus, you'll enjoy additional benefits like earning a dime back for every qualifying purchase and one reward point for every dollar you spend.

*Time to payoff remains an estimate and interest paid amounts are still approximate, especially with the long time frame.

Even if you can't pay off the entire balance immediately, you'll save money on interest charges compared to keeping your balance on a higher-rate card. The Visa Platinum Rewards Credit Card allows you to pay down your debt at a lower rate while enjoying valuable rewards.

In addition to the interest savings, a balance transfer can simplify your debt repayment. Instead of juggling multiple credit card payments each month, you can focus on paying off just one balance. This can make it easier to stay on track with your debt repayment plan and avoid missed payments.

Step 1: Assess Your Financial Situation

Before you begin the balance transfer process, you must closely examine your current financial situation. Start by reviewing your credit report and credit score. 

Your credit score significantly determines your eligibility for balance transfer credit cards and the interest rates you'll be offered. If your credit score is low, you may need to take steps to improve it before applying for a balance transfer card.

Next, evaluate your current credit card balances and interest rates. Make a list of all your credit cards, including the balances and interest rates for each. This will help you determine which balances you want to transfer and how much you could save.

Step 2: Compare Balance Transfer Offers

Once you have a clear picture of your financial situation, it's time to compare balance transfer offers. While many banks offer balance transfer credit cards, credit unions often have lower rates and better rewards. Radiant Credit Union, for example, offers the Visa Platinum Rewards Credit Card with a low balance transfer rate and valuable rewards points.

But when comparing any balance transfer offers, review the terms and conditions carefully. Look for cards with low or no balance transfer fees, long introductory periods with low or 0% APR, and competitive regular APRs. 

Don't forget to consider any rewards programs or additional benefits with the card!

Step 3: Apply for Your New Credit Card

After you've found the best balance transfer offer for your needs, it's time to apply for your new credit card. If you're a new member of Radiant Credit Union, you'll use the online application to transfer your balance as you open your card. If you're an existing member, you'll use our Request Form featuring DocuSign to provide the necessary information.

Step 4: Transfer Your Balance

Once your new credit card is approved, it's time to transfer your balance. With Radiant Credit Union, you can easily perform this step when you apply. 

The application will ask you for information, such as:

• Name
• Birthday
• Member/Loan Number
• Social Security number
• Radiant VISA Credit Card #
• Credit Card(s) / Creditor Name(s) and account number
• Amount to Transfer

There are a few additional considerations, most likely including: 

• Specifying the exact amount you would like transferred to each card/creditor
• You may request to transfer some or all of a given balance from a card/creditor 
• The minimum aggregate transfer amount from all cards/creditors is $500.00
• The maximum total transfer amount is based on the credit limit available on your Radiant Credit Card
• Balance transfers on Radiant VISA Rewards Credit Cards do not earn points

It's important to note that balance transfers can take several days to process. During this time, you should continue to make payments on your old credit cards to avoid late fees and penalties. Once the balance transfer is complete, you'll receive a confirmation from the credit union.

Step 5: Pay Off Your Debt

Now that your balance has been transferred to your new credit card with a lower interest rate, it's time to focus on paying off your debt. Start by creating a budget and allocating as much money as possible towards monthly credit card payments. Remember, the goal is to pay off your balance as quickly as possible to minimize the interest you'll pay over time.

If you're having trouble making your payments, don't hesitate to contact Radiant Credit Union for assistance. We offer a variety of resources and support services to help members manage their debt and achieve their financial goals.

Step 6: Maintain Healthy Financial Habits

Congratulations! You've successfully transferred your credit card balance and are on your way to paying off your debt. But the work doesn't stop here. To avoid falling back into debt in the future, it's important to maintain healthy financial habits.

Start by creating a budget and sticking to it. Be mindful of your spending and avoid making purchases you can't afford. If you use your credit card, pay your balance in full each month to avoid accruing interest charges.

Avoiding Potential Pitfalls

Balance transfers can save you money. However, there are a few things to watch out for:

• Balance Transfer Fees: Some cards charge a fee to transfer your balance. At Radiant Credit Union, our Visa credit cards have no transfer fees. Consider this cost when deciding if a balance transfer is right for you.
• Temptation to Spend: Don't put new charges on the card with your transferred balance because your goal is to pay off the existing debt—and not accrue additional debt.
• Regular Interest Rate: The regular interest rate on your new card will apply after any promotional period ends. Plan to pay off your balance quickly to avoid higher interest charges.

Why Choose Radiant Credit Union for Your Balance Transfer?

At Radiant Credit Union, we understand the challenges of managing credit card debt. That's why we offer the Visa Platinum Rewards Credit Card, which has a low balance transfer rate and valuable rewards points. Click below to learn more and explore all of the benefits you’ll get.

SEE OUR CREDIT CARD BENEFITS AND LOW RATES