Balance Transfers Explained

Credit Card debt is one of the biggest personal finance issues that America faces today. At the end of 2018, credit card debt in the United States reached an all-time high of $870 billion. Delinquencies are also on the rise. One of the factors that causes credit card debt to get out of control is high interest rates. Average credit card interest rates have been rising for the last 5 years. Currently the average APR is 16.91%.

Trying to pay down high interest credit card debt can feel like slowly chipping away at an iceberg. Balance transfers offer an opportunity for a much lower interest rate which could help you pay off your debt earlier. Often, when you take advantage of a balance transfer without extra fees, the lower interest rate saves you money as the total balance accrues less interest. For example, Bridge is offering a low INTRO** at 1.50% APR for the remainder of 2020.


Bridge Credit Union members may move all or some of their existing outside credit card debt onto a new card with a much lower APR. As simple as it sounds there are a few things to consider before making the balance transfer.


  • Be conscious of your credit score. The best offers are typically offered to those with decent credit. Knowing where you stand will help you keep realistic expectations and avoid being denied.
  • Make sure you understand the terms and conditions of the offer. Be sure to read the fine print and ask any questions you may have! Some financial institutions may charge fees including; annual fees, balance transfer fees, and cash advance fees.  Bridge’s current offer does NOT charge annual fees, balance transfer fees or cash advance fees.

In the long run, balance transfers can help you pay off your existing debt in a shorter time frame which lowers your credit utilization ration and can boost your credit score. In the short-term, keep in mind that applying for credit will mean that a hard inquiry will be recorded in your file and could have a temporary negative effect on your credit score.

If you decide that the long-term benefits of transferring a balance from another card is worth it, Bridge is here to help. Click here to learn more and apply for our current offer. You can also text our lending department with any questions at 614.466.4988.