Best Credit Cards for Consolidating Debt

By Christina Majaski. Last updated 22 July 2020. 0 comments

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If you’re juggling multiple credit card balances and want to pay down your debt faster, it might be time to consolidate your debt. By merging your debts onto a balance transfer credit card, you can reduce the number of payments you’re making, save money on interest, and finally get rid of your debt.

While it might seem unlikely that another credit card would leave you better off, some cards were made for this purpose. Most balance transfer cards offer 0% APR for anywhere from 12 – 21 months, and a few don’t even charge a balance transfer fee.

Keys to successful debt consolidation

There are a few things to keep in mind when consolidating your debts. First, you’ll need good credit to get a good balance transfer deal. If you don’t have good credit, you may want to consider other ways to consolidate debt.

Next, make sure you look closely at the balance transfer card’s “go-to” interest rate — the APR that’s charged once the promotional period is over. Often these rates are higher than regular credit cards. If you can’t pay off the balance before the go-to rate takes effect, you may be better off sticking with the cards you have, or trying to find a low interest card instead.

Third, take a look at the balance transfer fee. Most cards charge about three percent of the amount you’re transferring. You’ll usually still come out ahead even with the fee, but be sure to check.

Most importantly, you need to have a plan for how to get out of debt and stay out. Use the no-interest period to pay off as much debt as you possibly can. Cut your budget, pick up overtime at work, and look for additional ways to put more money toward your debts each month. And don’t be tempted to use your newly freed up credit lines to rack up yet more debt. If you do that, you’ll find yourself in a debt spiral.

These offers can be a godsend if you’re ready for a change, but they only work if you make the debt repayment plan and follow through. With that in mind, we’ve chosen some of the best cards for consolidating your debt. When deciding on a card, remember that you cannot transfer balances from one card to another card from the same issuer. You’ll need to go with a different bank for your balance transfer card.

U.S. Bank Visa® Platinum Card

The U.S. Bank Visa® Platinum Card offers a 0% introductory APR on purchases and balances transferred within 60 days from account opening, for the first 20 billing cycles. After that, the variable APR is 13.99% – 23.99% based on your creditworthiness. There is a balance transfer fee of 3% or $5, whichever is greater. There is no annual fee.

Info about the U.S. Bank Visa® Platinum Card has been collected independently by Wise Bread. The issuer did not provide the details, nor are they responsible for its accuracy.

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Best Credit Cards for Consolidating Debt

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