A credit card balance transfer can save you money by allowing you to move existing debt that you have on a higher-interest rate credit card to another/different credit card with a lower interest rate. While transferring your balance won’t get rid of your debt, it will help make it more manageable. Here are some things you should know and some things to consider before doing so.

How does a balance transfer work?

When you complete a balance transfer, you repay your existing debt with another/different credit card, which transfers your balance to the new credit card. The purpose is usually to reduce the interest you’re paying so you can save on interest and pay off your debt sooner. 

When is it a good idea to do a balance transfer?

To get the most value out of doing a balance transfer, its best to do one when you need more time to pay off debt. Most balance transfer promotions feature a low interest introductory rate so if your current credit card has a high interest rate, this would allow you to put more of your dollars towards paying off your balance.

Do I need to talk to my old financial institution when setting up a transfer?

Your new card issuer will handle the transfer so there’s no need for you to have that awkward conversation with your old financial institution about switching.

Transferring your balance with First Heritage:

When you transfer your high-rate credit card balance to a First Heritage Visa® Classic or Visa® Platinum you could save with a 12-month introductory rate of 1.99% APR*. 

Is there a balance transfer fee?

The average transfer fee is around 3%-5% of the total amount you transfer, but at First Heritage we believe in helping you save without making you pay more than you should and that’s why our Visa® Classic and Visa® Platinum Credit Cards have a $0 balance transfer fee.

Is there a limit to how much you can transfer?

With First Heritage, there is no set limit on how much you can transfer but rather it will be dependent on the spending limit you are approved for on the card you’re transferring to. Basically, this means you can transfer as much of your old balance as you’d like so long as it is less than or equal to the spending limit of your new available balance.

How is the interest rate determined after the 12-month promotional 1.99% APR ends?

First Heritage’s Visa® Classic card has a low fixed interest rate of 13.25% and our Visa® Platinum card carries the current prime rate plus 4.5% – so even after the introductory rate ends, you’ll still be saving by transferring your balance from a card with a higher interest rate.

After the promotional rate ends will I be billed for any back interest if I haven’t paid off the debt in full?

No, our goal is to help ease your financial stress and help you pay off debt sooner by offering low interest rates even after the promotional period ends. If you still have a remaining balance after the promotional period, that’s okay! You will not accrue and charges for back interest.

To learn more about First Heritage’s Visa® Balance Transfer and to apply, visit our website, call 607-936-4667 or come see us at one of our branch locations.

*APR = Annual Percentage Rate. Balance transfer rate of 1.99% effective for 12 months. Rate will revert to a variable APR of prime +4.50% APR for VISA Platinum and 13.25% APR for VISA Classic once the promotional period has ended. Current APR for purchases and cash advances is prime +4.50% APR for VISA Platinum and 13.25% APR for VISA Classic. Rates are as of 02/01/21. Purchases and cash advances made in foreign countries and foreign currencies will be billed to you in U.S. dollars. The foreign transaction fee is 1% of the transaction amount. Limit: two balance transfers per 12-month period. New money only.