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What is a balance transfer and can it help me?

Dealing with massive amounts of credit card debt can become very overwhelming very quickly. Additionally, the myriad of options available for managing credit card debt may also be overwhelming. One potential option for paying down your credit card debt is to try a balance transfer card.

A balance transfer card is a kind of credit card transaction where you move your debt from one account to another account. According to NerdWallet, balance transfers are best for people who have good enough credit to get a balance transfer card with a 0% introductory APR.

How does it work?

First, you will need to apply for a balance transfer card, preferably one with a 0% introductory APR. Once the credit card company approves you, you may then initiate a balance transfer. This will move your debt from the credit card it is currently on to your balance transfer card.

Once the transfer goes through, which may take over two weeks, depending, you can then work on paying down the balance. It is best if you can pay down the balance during the 0% introductory APR period. In this way, you can save a lot of money on interest while paying off your debt.

Is it the right choice for me?

If your credit is not around 690 or higher, it is likely that you will not be able to secure a balance transfer card with a favorable APR rate. Additionally, keep in mind that in most cases you may not engage in a same-issuer transfer. That is, if your debt is on a Capital One credit card, you will not be able to transfer to another Capital One card.

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