Editorial Policy

Want a Lower APR on Your Credit Card? Make a Credit Card Transfer

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By Eva Norlyk Smith, Ph.D.
May 22, 2009

A credit card transfer to a lower APR can save you a lot of money by lowering the interest you pay each month on your credit cards. While there are numerous balance transfer offers available when you apply for a new credit card, it’s often better to use your existing credit cards to do the transfer.

Many people think that credit card transfer deals are hard to come by unless you apply for a new credit card or happen to receive a convenience check with a credit card transfer offer in the mail. However, applying for a new credit card each time you want to make a credit card transfer is not such a good idea. Each time you apply for a credit card, your credit report is pulled, and that lowers your credit score.

If you have multiple credit cards and some of them don’t have a balance, a credit card transfer using your existing credit cards is a great way to lower the average interest you pay on any outstanding balances on your credit cards, without hurting your credit rating.

There are three ways to make a balance transfer with the credit cards you already have. The terms for each method often vary, even for the same credit card. So, to get the best deal, it’s useful to research all three methods of credit card transfer. Of course, as always, to get the very best balance transfer offers, your account needs to be in good standing and your credit score high.

Quick Credit Card Transfer Tip. Once you’ve transferred a balance to your credit card at a low interest rate, remember to never use that credit card for regular purchases. New purchases would accrue interest at a higher APR, essentially wiping out the benefits of the credit card transfer.