Many Consumers Not Taking Full Advantage of Balance Transfer Cards

Many Consumers Not Taking Full Advantage of Balance Transfer Cards

December 13, 2018         Written By Bill Hardekopf

Balance transfer cards are designed to help cardholders consolidate their credit card debt or achieve a lower interest rate for those debts. Most come with a 0% APR introductory period, where no interest is accrued on the transferred balance for a certain number of months.

In order to maximize this opportunity, it’s important to pay off the transferred balance in full before the introductory period is over. Otherwise, a large amount of additional interest fees will be tacked on to the balance.

According to a new survey, only 59% of cardholders have paid off their balance transfers before the end of the introductory period. Another 22% said they paid most of the balance, and the remainder had only paid a part of it.

Balance transfer cards remain a popular choice for Americans. In fact, 41% say they have had a balance transfer card in the past. That number increases with income. A staggering 69% of respondents with a household income over $100,000 have used a balance transfer card at least once, and 47% have transferred balances more than once. Only 28% of households earning under $50,000 had used a balance transfer card.

Men were significantly more likely than women to pay off their transferred balances in full (70% vs. 43%) and more likely to get a balance transfer card in general (54% vs. 31%).

The information contained within this article was accurate as of December 13, 2018. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

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About Bill Hardekopf

Bill Hardekopf is the CEO of LowCards.com and covers the credit card industry from all perspectives. Bill has been involved with personal finance for over 15 years. He is a frequent contributor to Forbes, The Street and The Christian Science Monitor.