Are you carrying credit card debt? If so, you are probably paying interest on that credit card debt. NavyFederal Credit Union (NFCU) is offering a great balance transfer offer right now: 0% interest for 12 months, and no balance transfer fees. This deal is definitely worth a look to see if it is something that would work out well for you.
How do you know if this deal is for you?
First, do you already have a NFCU credit card? How much available balance do you have? Do you have available credit to do a balance transfer, or will you need to have your credit limit increased? Don’t increase your credit limit if that isn’t otherwise a good move for you. What is your interest rate on the card now? This is the rate that you will start paying after the 12 month promotional period ends. You don’t want to move a huge balance from a lower rate card, then start paying higher rates on it when the promotional period is up.
If you don’t already have a NFCU card, you will need to open a new account. Consider all aspects of opening new credit before making a decision – sometimes this is exactly the right thing to do, sometimes it is an awful idea.
If you already have an NFCU credit card with available credit, or you have evaluated the options and it seems wise to ask for a new account or an increased limit, then you need to decide how much credit card debt you want to transfer. Since this offer has no transfer fees, that is not a worry. If the rate on your NFCU card is lower than the debt’s current interest rate, then it would make sense to go ahead and move the whole balance. However, if the current account’s rate is lower than the regular NFCU rate, then only transfer as much as you can pay off within the 12 month period.
If you decide to take advantage of this offer, be sure to do an online or telephone balance transfer – do not use your convenience checks. They will be charged a fee and will not be eligible for the promotional offer.
If you do all the math, and stick to all the details of the deal, balance transfers can be a great way to reduce or eliminate the amount of interest you pay while you get rid of your debt. However, you must be careful to look at all the fine print to make sure you don’t have any missteps.