Woman checking her credit card statement.

Conquering Debt: A Simple Guide to Balance Transfers

January 2025

Did the holiday season leave you with credit card debt? You’re not alone! Many find themselves in a similar situation starting into the new year. Next is making a move to overcome that debt, and one of the options is with a credit card balance transfer.

Understanding Balance Transfers

A balance transfer is moving the balance from one credit card, typically with a higher rate, to another card with a lower rate. This gives you some breathing room to pay down your debt without accruing substantial interest charges from the higher rate card.

Considering a Balance Transfer? Here’s What to Know

Balance transfers are easy and straight forward, here are a few things to keep in mind:

  • Credit Limit: Make sure the card you are transferring to has a credit limit that covers your entire balance.
  • Eligibility Requirements: Verify that you meet the eligibility requirements.
  • Balance Transfer Fees: Some cards charge a fee for transferring your balance. To avoid these fees, look for cards that have no balance transfer fees, such as a UCU credit card.
  • Consider Consolidation: If you’re able to consolidate multiple card balances into one card, you can simplify your payments and make your debt easier to manage.

Maximizing Your Balance Transfer

  • Transfer Your Entire Balance: Move as much of your credit card debt to the new card as you can to maximize your savings and reduce interest paid.
  • Create a Budget: Make a budget that includes a dedicated amount for debt repayment.
  • Go Beyond the Minimum Payment: Pay more than the minimum monthly payment to pay off your debt faster. Paying bi-weekly can really speed things up!

UCU Balance Transfer: A Smart Move for Your Wallet

At UCU, we believe in empowering our members to make informed financial decisions. That’s why we offer $0 fee balance transfers* and offer cards with low rates. This can significantly reduce your interest charges and help you pay down your debt faster.

Introductory APR* on Purchases

Take advantage of introductory offers, like the great rate that UCU offers to new credit card holders. When you open a new UCU credit card you get 3.99% intro APR* for the first 12 months on purchases. (After introductory rate, reverts to standard APR: 12.74%-21.74% variable APR.)

Consolidating your high-interest debt into a UCU Credit Card can be a smart way to simplify your finances and save money. Get started today to learn more about UCU credit cards, balance transfers and how UCU can help you achieve your financial goals.

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*APR=Annual Percentage Rate. Rates effective 11/1/2024. Standard APRs for purchases, balance transfers and cash advances will vary based on Prime Rate and credit worthiness and range from 12.74% to 19.74% for the Platinum Card, from 14.74% to 21.74% for the Platinum Rewards Card. The introductory APR for purchases is 3.99% for 12 months. The introductory APR for purchases will apply to transactions posted to your account during the first 12 months following the opening of your account. After that, the APR will revert to your standard APR for purchases which will vary with the market based on the Prime Rate and your credit worthiness. Cash advances made with this card are subject to a fee of $10 or 3% of the amount of each cash advance, whichever is greater. Foreign transactions are subject to a fee of 1% of each transaction in U.S. dollars. Membership eligibility applies.