The Ultimate Guide to Credit Cards

Copyright ©2015 Iron Horse Holdings, LLC


Adults with Existing Credit Card Debt

For those individuals with existing credit card debt who are trying to repair their credit, it is possible to use balance transfer credit cards to help save money. By strategically performing a balance transfer, it is possible to shift the burden of high interest payments to a less expensive card, or one that offers 0% APR.

1. Balance Transfer Credit Cards

Balance transfer credit cards can put you back in control by consolidating high-interest credit card balances onto one low interest rate card, and the interest you save can add up to thousands of dollars long term.

  • red credit card

    Current Card

    Outstanding Balance $2,800

    Purchase Rate: 19.5%

  • orange credit card

    New Card

    Balanced Transferred: $2,800

    Balance Transfer Introductory Rate: 0%

    Balance Transfer Introductory Period: 12 Months

The two biggest considerations when choosing a new credit card for a balance transfer are to determine how long your introductory rate will last, and how much you are charged in flat fees to do the initial transfer.

Transfer Fees:

The typical fee amount for balance transfers is 3 percent of the transferred amount. For example, if you are transferring $2,500 from one credit card to another, you would be charged $75 just to transfer the balance.

Introductory Rates:

Most offers will expire, so be sure to read the small print and find out how long yours will last.

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