Is a Credit Card Balance Transfer Worth It?

iQuanti: Making the right financial decisions can be challenging. But by doing research and considering your options, you may be able to improve your financial security and even save money. 
If you’ve been going back and forth with yourself about whether a credit card balance transfer is worth it, there are a few questions you may want to ask yourself to ensure you’re making the right decision for your financial future. Let’s dive deeper into what a balance transfer credit card is and whether a balance transfer is worth it.
What is a balance transfer credit card?
So, what is a balance transfer credit card? A credit card balance transfer is when you move a balance from one card to another. This can help you consolidate your debt from multiple cards and move it all to one card with a lower promotional interest rate. 
A balance transfer allows you to pay down your debt while spending less money and, in some cases, less time. Your new creditor will pay off your debt, and then you’ll pay what you owe on the credit card with the balance transfer. 
How to decide whether a balance transfer is worth it
Here are some questions you should ask yourself when deciding whether a balance transfer credit card is worth it: 
What is the balance transfer’s introductory interest rate, and when does it expire?
You’ll want to make sure that your money makes sense. A significant indicator of knowing whether a balance transfer is worth going through is knowing the details of the introductory interest rate. Many balance transfer credit cards come with a 0% or low introductory APR offer.
Ask yourself if the balance transfer fees are less than the interest you would pay on the original card before transferring. If your goal is to save money while paying down your debt, going about a balance transfer won’t be worth your time or money if you’re paying a higher interest rate. 
You should also keep in mind that the introductory APR is temporary, and find out when it expires on your balance transfer credit card. If you believe that you can pay off your balance before the initial interest rate expires, a balance transfer could be worth it. 
Can you pay off your balance?
Transferring your debt from one credit card to another does not make the balance go away on its own. You’ll need to make sure that you can realistically pay down your remaining balance in a timely manner and that you’re entirely dedicated to doing so. If not, you may find yourself in a larger snowball of debt than when you first started.
Do you have a backup plan?
It’s essential to have a backup plan for any financial decision you make, including getting a balance transfer credit card. Ensure that you have emergency funding in place if any unforeseen circumstances come your way, like becoming sick or loss of employment. This way, you may still be able to pay off your balance on time.
The bottom line
So, is a credit card balance transfer worth it? The answer depends on your personal situation and the intent for the balance transfer. It has great benefits and can be worth the journey if you take the necessary precautions. 
It’s always important to do your research and read the fine print. Find out as much as you can so that you’re familiar with how balance transfers work for your benefit, and don’t rush a decision. Take some time to evaluate your financial situation to ensure that a balance transfer is suitable for you. 
Source: iQuanti, Inc.