If you have credit card debt, a balance transfer to a low fixed-rate credit card like the Alaska USA Visa® Credit Card could save you a lot of money—and get you out of debt faster.
For this example, let’s say you have $1,000 of credit card debt on a typical travel-reward credit card, which tends to come with a higher APR of around 18.00%. You don’t use the card frequently and somehow manage to end up with a balance of right around $1,000 on the card at the end of every month. The interest on that $1,000 is going to cost you an extra $180 in the first year alone. Even if you stop using the card but only make the minimum payment of $25 a month —that’s an additional $539 in interest over the 62 months it will take to finally pay off that debt.
Now lets consider moving that balance to an Alaska USA Visa Credit Card with an APR of 10.50%, 12.50%, or 14.50% assigned based on your credit score. Even at 14.50% APR the interest on the $1,000 would drop to only $145 in the first year. If you simply paid the minimum balance on the $1,000 without adding any more to the card, you’re still only paying $375 in interest over 55 months—that’s a savings of $164 and 7 months of time.
Alaska USA does not charge a balance transfer fee. A typical balance transfer fee is 3%, or in this example $30 to transfer $1,000. It seems nominal, but fees add up. The higher the balance that you transfer, the higher fee you’ll pay.
Here’s what’s even better: You can do multiple balance transfers from different credit cards, consolidating your debt under a lower interest rate and making it easier to create a repayment plan so you can pay down your debt faster.
Of course, if you really want to save money, you’ll want to pay down your debt as fast as possible. Even adding $5 more to your monthly payment, making it $30 instead of $25, would reduce your extra cost to $288 over 43 months. A little goes a long way!
So, what’s the overall savings you could see with an Alaska USA Visa Credit Card and paying slightly more than the minimum payment? On $1,000 of debt you could save $251 and pay off your debt in 3 years and 7 months—instead of the 5 years and 2 months it would’ve taken with your old card.
Transfer your higher-rate credit card balances with one easy phone call:
Call the Member Service Center 24/7 at 800-525-9094 to initiate a balance transfer.
Don't have an Alaska USA Visa Credit Card? Applying is easy.
Move your high interest credit card debt to a lower interest Alaska USA Visa Credit Card to give yourself a little breathing room on your monthly bills. Plus flexible rewards points earned with every purchase and no annual fee*, what are you waiting for?Apply today
*Annual fee of $50 waived for Alaska USA checking account holders. Cash advance fees up to 2% of the cash advance amount ($10 maximum), late payment (up to $35), and returned payment (up to $20) fees apply.
There's never been a better time to become a member. Get in touch today!
You will need your Social Security Number, Government-issued ID, and information for funding your new account handy during the enrollment process.
You are about to visit a third-party website not operated by Alaska USA Federal Credit Union.
Alaska USA Federal Credit Union is not responsible for the product, service, or website content on any external third-party sites and does not represent either you or the website operator if you enter into a transaction. Alaska USA Federal Credit Union's privacy and security policies do not apply to the linked site.Continue OR, CANCEL