So, you’ve completed a Visa Balance Transfer (VBT). Congratulations! You’ve taken a big step toward living debt-free, but your journey isn’t over yet. To reap the rewards from your VBT, you must follow five critical steps to get rid of your debt.
What is a VBT?
A VBT allows you to transfer a high-interest credit card balance to a Visa with a promotional rate that stays low for a limited window. For instance, the credit card balance transfer may have a 0% interest rate for 12 months. The interest rate rises if you have not paid off that balance when the promotional period expires. For tips on how to do a balance transfer, check out our blog post.
Why a VBT Is a Good Idea
Key Steps to Take After Your Balance Transfer Occurs
Take these five steps to take advantage of all the benefits of a VBT.
- Check the Balance of the Old Card
You might assume your balance is $0 after a balance transfer, but sometimes late interest fees or expenses will go on the card in the next billing cycle. Monitor your balance for several months.
- Set up Autopay
Promotional deals may end or adjust with a missed payment. Set up an automatic payment for the minimum required monthly payment so you always remember.
- Calculate How Long You Can Take to Pay Off Your Debt
Paying your transferred balance within the promotional period is wise to take advantage of the low-interest rate. Figure out a plan. For instance, if you have a balance of $6,000 and your promotional rate lasts for 12 months, then you must pay $500 per month to knock out the balance in time. You might even try saving on every day costs or picking up a side hustle and funnel the extra money toward those payments.
- Stop Adding New Debt
Don’t pile up new credit card charges while working to pay off your recent balance transfer.
- Monitor Your Credit Score
Regularly paying down debt can raise your credit score, regardless of income level.
Our VBT Options
We have several promotional rates available on our Visa cards:
- A 0% annual percentage rate (APR) for 12 billing cycles*.
- A 1.9% APR for six billing cycles*.
- A 2.99% APR for three billing cycles*.
*After the promotional window, your APR will rise to 13.50%-18.00% based on your credit history.
Who Should Do a VBT?
People with a decent credit score and a high balance on their current card.
We offer many tools to make your VBT a success! Wondering how to transfer a credit card balance and face your debt? Use our debt-to-income ratio calculator to manage your debt load and our debt consolidation calculator to explore solutions. Set up automated payments with our digital tools, too.