Balance Transfer Calculator
Calculate potential savings from transferring high-interest credit card balances to a lower-rate card. Compare costs and determine if a balance transfer is right for you.
Current Credit Card
Balance Transfer Card
Comparison Results
Current Card Total Cost
$7,163
Payoff time: 48 months
Transfer Card Total Cost
$5,482
Payoff time: 37 months
Total Savings
$1,681
✓ Balance transfer is recommended
How Balance Transfers Work
A balance transfer involves moving debt from one credit card to another, typically to take advantage of:
- Lower interest rates: Promotional 0% APR or reduced rates
- Consolidation: Combine multiple debts into one payment
- Payment flexibility: Better terms or payment options
- Cost savings: Reduce total interest paid over time
Important Considerations
Pros
- • Lower interest rates during promotional periods
- • Simplified payments with debt consolidation
- • Potential for significant interest savings
- • Breathing room to pay down debt faster
Cons
- • Transfer fees (typically 3-5% of balance)
- • Promotional rates are temporary
- • May encourage additional spending
- • Credit score impact from new applications
Frequently Asked Questions
How long do promotional rates last?
Promotional rates typically last 12-21 months, but can range from 6-24 months depending on the card and your creditworthiness.
What happens after the promotional period?
The interest rate increases to the card's regular APR, which may be higher than your original card's rate.
Can I transfer a balance multiple times?
Yes, but each transfer typically incurs fees, and repeatedly opening new cards can impact your credit score.
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