How a Credit Card Balance Transfer Can Help You

Managing credit card debt can feel overwhelming when your payments are barely covering interest due to high interest rates. There are several options when it comes to managing overwhelming or stacking debt, one of them being a balance transfer. A balance transfer is when you take a high balance from a high-interest credit card and move the balance to a new credit card that has a lower introductory rate. Completing a balance transfer can take place on a new card, or you may even have another card that offers this promotion.

This article walks through what a balance transfer is, how to do it, key tips for choosing the best balance transfer promotion, and how they compare to other repayment strategies like debt consolidation loans or repayment tactics. You’ll also learn how to protect your credit score and create a plan for lasting financial wellness.

How a Balance Transfer Works

Think of a balance transfer as moving a bill from one place to another so it costs less to pay off. Here’s how it goes, step by step:

1. Choose a balance transfer credit card

   This is a credit card that offers a low introductory interest rate for a set time (often 6–18 months).

   The “introductory rate” is a temporary lower rate meant to help you pay down debt faster.

2. Apply and get approved

   You’ll fill out an application just like you would for any credit card. Approval depends on your credit history and income.

3. Request the transfer

   After approval, you tell the new card company which existing credit card balance you’d like to move.

   This doesn’t erase the debt; it simply moves it to the new card.

4. Repay during the low-rate period

   Make steady monthly payments to the new card before the promotional rate ends. When that period is over, the regular interest rate starts, which is usually higher.

5. Avoid adding new debt

   Keep the old card open but avoid using it for new purchases. Having that available credit can help your “credit utilization ratio,” a measure of how much of your available credit you’re using.

These steps are important for helping you understand your options. A balance transfer can be a smart move if it fits your situation and you have a plan to pay the balance before the higher rate returns.

Here’s when a balance transfer could be right for you:

• You have high-interest credit card debt

  and want to lower the amount you pay in interest each month.

• Your credit score is solid

  enough to qualify for a card with a low introductory rate.

• You can commit to steady payments

  and pay off the transferred balance before the promotional rate expires.

• You’re not planning major new purchases

  that would increase your debt while you’re paying down the transfer.

• You can avoid balance transfer fees

  or have calculated that the savings in interest outweigh any fees charged. The best practice is to seek out financial institutions that don’t charge balance transfer fees, such as

  Westerra Credit Union.

Important Considerations When Doing a Balance Transfer

A balance transfer can be a good move, but only if you plan carefully. Keep these points in mind:

• Know the time limit.

  Introductory rates last for a set period, often 6–18 months. Aim to pay the full balance before the regular interest rate takes effect.

• Check for transfer fees.

  Many cards charge a fee, typically a small percentage of the amount moved. However, there are options including Westerra Credit Union that do not charge balance transfer fees.

• Avoid new debt.

  Using the new card for purchases can add to your balance and may not qualify for the low intro rate.

• Pay on time, every time.

  Making late payments can make it harder to pay off your balance and may hurt your credit score.

• Keep old accounts open when possible.

  Closing a paid-off card can raise your “credit utilization ratio,” which might lower your score. Leaving the account open (and unused) can help maintain a healthy credit profile.

• Watch your credit score.

  Applying for a new card causes a small, temporary dip because of a “hard inquiry,” but steady on-time payments and lower overall balances can improve your score over time.

Approach a balance transfer with a clear payoff plan so the introductory rate works in your favor and your credit remains strong.

Balance Transfer vs. Other Debt Strategies

Different repayment methods fit different situations. Here are three common options and how to decide which is best for you:

1. Balance Transfer

• Move high-interest credit card balances to a new balance transfer credit card with a low introductory rate.

• Works well if you can commit to paying off the balance before the promotional period ends.

• Saves the most on interest when you have a clear payoff plan and steady income.

2. Debt Consolidation Loans

• Roll multiple debts into a single loan with one monthly payment and a set payoff timeline.

• Can be structured as a personal loan, auto loan (using your vehicle as collateral), home equity loan or line of credit, a fixed-rate second mortgage, or even a mortgage refinance.

• Helpful if you want a longer repayment period or prefer a steady interest rate instead of a short balance-transfer promotion.

• Works well when you have a larger balance spread across several cards or accounts.

3. Debt Snowball Method

• Focus on paying the smallest balances first while making minimum payments on others.

• Builds momentum and motivation through quick wins.

• Can cost more in interest compared with a balance transfer or personal loan if your larger debts carry higher rates.

4. Financial Counseling

• Connect with a nonprofit credit counseling agency for a free, personalized plan to tackle debt.

• A certified counselor can review your full financial picture, set up a realistic budget, and outline repayment strategies.

• GreenPath Financial Wellness is an example of a financial counseling nonprofit.

• Ongoing guidance and education help you build habits to stay out of debt in the long term.

Evaluate how much you owe, how quickly you can repay, and how you stay motivated. You might even combine strategies. For example, start with a balance transfer to cut interest, then use the snowball method to finish paying off remaining balances.

Start Paying Down Your Debt

A balance transfer can be a smart way to reduce interest costs and simplify payments when used with a solid payoff plan. Westerra Credit Union offers credit card balance transfers with no fee and a lower introductory rate for the first 12 months, giving you room to focus on paying down what you owe. If you’re ready to take control of your debt and move toward greater financial wellness, consider applying for a Westerra balance transfer credit card today.

* Introductory balance transfer rate is valid for 12 billing cycles from account origination on balances transferred to a Visa Signature® or Visa® Select card from other financial institutions.