One Strategy Everyone With a Credit Card Balance Should Consider
Written by
Jennifer Taylor
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If you carry a credit card balance, you’re probably hoping to pay it off as quickly as possible. However, this can be challenging if you’re weighed down by a sky-high interest rate. Many credit cards these days come with interest rates of 20% or higher. It can feel impossible to get ahead.
You do have options, but they’re not all created equally. And some are much more drastic than others. There’s one option that’s worth considering — and it could drop your interest rate to as low as 0.99% APR.
How You Could Cut Your Credit Card Interest Rate to as Low as 0.99% APR
If you’re carrying high-interest credit card debt every month, you’re basically throwing away money. One option worth considering is a balance-transfer card. Depending on your situation, it could be a good option for you.
It essentially transfers your current credit card balance to a new card with a much lower interest rate, giving you a chance to pay down your balance instead of having a huge chunk of your payments go toward interest.
For example, the Navy Federal Credit Union Platinum Card offers 0.99% APR for the first 12 months, and there’s no balance-transfer fee. That gives you a break on those excessive interest rates for a year while you work to pay down your balance.
After the first year, the card comes with a variable APR between 11.24% and 18%.
Why Use a Balance-Transfer Card?
Some credit card debt can be paid off quickly, but that isn’t always the case. If you need to make a large purchase or have existing credit card debt, opening a balance-transfer card can make sense.
Assuming you have average to excellent credit, you can take advantage of the lower interest rate attached to a balance-transfer card. If you currently have several different credit cards, this can also simplify your payment process.
Beyond that, it might also help improve your credit score. For example, reducing your total debt and improving your credit utilization ratio can both have a favorable outcome on your credit score, according to Equifax.
How to Stop Wasting Money on Credit Card Interest
Want to cut back those exorbitant interest rates on your credit card balance? It’s easy to get started with an NFCU Platinum card and quickly start saving on interest. When you transfer outside balances within 60 days of opening your account, you’ll get a 0.99% introductory APR on balance transfers for 12 months. Compare that to the more than 20% most people are paying. It could save you quite a bit of money.
After that, you’ll receive a variable APR of 11.24% to 18%, in addition to paying no balance transfer fees. This can allow you to save tons of money on interest and fees, compared with similar products from other financial institutions.
For example, we’ve seen other popular cards with over 30% variable APR and others with a 5% balance-transfer fee.
Some other key benefits of the NFCU Platinum Card include no annual fees, foreign-transaction fees or cash-advance fees. Plus, all NFCU credit cards come with 24/7 access to stateside member reps, the ability to freeze and unfreeze your cards, a zero liability policy for unauthorized transactions, fraud notifications and access to your credit score.
The Bottom Line
If you’re carrying a credit card balance, paying interest comes with the territory. But there’s no need to pay more than necessary.
The NFCU Platinum card keeps fees to a minimum, so you can pay your balance down as quickly as possible. Apply now to see how much you could save on credit card interest.
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