Checklist: 5 Steps After a Balance Transfer
So you’ve decided to take charge of your financial health and transfer your high-interest debt to a low (or no) interest credit card. You played it smart and found a great card with a balance transfer. Yay you! Nothing else to do, right?
Not quite! Capitalize on your low-interest grace period by taking the following smart-money steps:
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Make a payment plan. Bank those interest savings by firming up your budget and paying more than just the minimum payment.
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Hop on the autopay train. Avoid late payment fees that eat up your account balance. Set up automatic bill pay on day one and check that hassle off your list. Use a credit card payoff calculator to determine how much you need to pay each month to meet your goal.
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Track your transfer rate expiration. If you received an introductory interest rate, be aware of when it expires. Tighten up weak areas in your budget and set calendar reminders to track your progress toward a zero balance before the interest rate increases.
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Don't close old accounts. Financial expert Jade Beckman, vice president consumer loans at Mountain America Credit Union explains, “Credit utilization, or your percentage of credit used versus your total credit available, is a major factor in calculating your credit score. A lower utilization percentage can add up to a higher credit score, and transferring your debt to a new card will reduce your overall percentage.”
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Read the fine print. Many balance transfer credit cards only apply the stellar interest rate to the transferred balance. New purchases then collect interest at a much higher rate. Worse yet, some lenders may require you to pay off the entire transferred balance before allocating payments to new debt. Check your new card's rules before adding to the balance. Better yet, make your paid-in-full monthly purchases on a card with no balance.
If you’re interested in reducing your debt with a balance transfer, now’s the perfect time. While many financial institutions charge for balance transfers, Mountain America pays you a 3% cash bonus!* Transfer a loan or credit card balance from another financial institution to your Mountain America Visa® credit card by September 30, 2018, and we’ll pay you 3% of the transferred amount.
Don't let this train leave the station without you!
*Limit of two transfers from the same external account or financial institution. Total cash bonus cannot exceed 3% of the credit limit on your Mountain America credit card during the 2018 calendar year. Not available on business accounts or balances transferred from an existing Mountain America loan. Cash bonus is considered interest and will be reported on IRS Form 1099-INT. On approved credit. Membership required—based on eligibility. Offer expires 9/30/18.
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