You manage everything in your life like a boss! Your schedule, your closet, your lawn - so why not your finances? Why churn through four different credit cards with high, variable interest rates when Cedar Point has a low, fixed-rate credit card? Transfer your balances to a Cedar Point credit card and save on interest in the long run.
What's a Credit Card Balance Transfer?
A balance transfer is simple. You apply for a new card with a lower interest rate than your current card. Then, you request to transfer your balance from that card to the new one. Essentially, you're moving credit card debt from one credit card to another to save money on interest. Do you carry balances on multiple credit cards? You can transfer multiple balances to a Cedar Point credit card for a simpler monthly payment.
When you transfer your balances to a Cedar Point credit card, you can consolidate your debt while also accessing a lower, fixed rate. Lower rates can potentially help you save money on your monthly payments and pay off your debt sooner. Here's how:
Here's an example of what your monthly interest savings might look like if you transfer your balances to Cedar Point. In the scenario below, your monthly payment would be reduced by $18. Over time, those savings really add up.
*APR = Annual Percentage Rate
Do the Math
If you carry a balance, with an APR of between 15 – 20%, almost half of every minimum payment made is consumed by interest charges. With over 20% APR that becomes nearly two-thirds of your minimum payment. The example below reflects a $1,000 balance.
If your minimum payment is $25 on your $1,000 balance:
You get the idea. With a lower rate like 7%, you are paying more toward the principal to help you decrease your debt faster.