Everyone loves a good vacation, but the cost of travel can add up quickly. The expenses can sometimes be overwhelming, from flights and accommodations to food and activities. What if you could use a balance transfer credit card to fund your next vacation and save money on interest charges? It might be an option worth considering.
At Benchmark Federal Credit Union, we offer 0% APR* Visa balance transfer credit cards that could be an excellent tool to help you finance your dream vacation. In case you need a bit of inspiration, a selection of the most popular vacation destinations for 2023 include Orlando, Cancun, London, Paris, and Rome. Some quiet time on a sunny beach or spent touring a new city sounds perfect, doesn’t it? Here are some tips on using a balance transfer credit card to fund your next vacation and save money on interest charges.
Understand How Balance Transfer Credit Cards Work
Before applying for a balance transfer credit card, it’s essential to understand how it works. A balance transfer credit card allows you to transfer your high-interest credit card balances to a new card with a lower interest rate. Many, such as Benchmark, extend this offer to new purchases during the special introductory period as well. This lower rate can save you money on interest charges and help you pay off your debt faster.
As mentioned, the most significant advantage of a balance transfer credit card is the introductory period of 0% interest. You won’t be charged interest on your transferred balance during or new purchases during this time, typically around 12 months. This interest-free period can be a significant help if you’re trying to pay down your debt or finance a significant expense like a vacation.
Choose the Right Credit Card
When choosing a balance transfer credit card, look for one with a long introductory period of 0% interest. For example, at Benchmark Federal Credit Union, our Visa balance transfer credit card offers 0% APR* interest for the first 12 months, giving you plenty of time to pay off your balance interest-free.
In addition to the introductory period, consider other factors like the balance transfer fee, annual fees, and rewards program. At Benchmark Federal Credit Union, our Visa balance transfer credit card has no balance transfer fee or annual fee. That’s an important bonus to select balance transfer cards. Tap to compare the benefits of the different Benchmark FCU VISA credit cards. Select your card based on the perks that are most important to you, from low rates to cash back, rewards, or travel protection. Benchmark FCU has the right card for your individual needs.
Set a Budget for Your Vacation
Setting a budget is essential Before using a balance transfer credit card to fund your next vacation. First, determine how much you want to spend on flights, accommodations, food, and activities. Stick to your budget while planning and traveling. One of the many benefits of using a balance transfer credit card is that you can spread out your payments over the introductory period without paying interest. However, it’s crucial to avoid overspending or to use the credit card for non-essential purchases in order to pay off the balance quickly.
Create a Repayment Plan
When using a balance transfer credit card to fund your next vacation, it’s essential to have a repayment plan in place. Ensure you know the monthly amount it would take to pay off your balance before the introductory period ends. At Benchmark Federal Credit Union, we offer a variety of online tools to help you manage your credit card payments and stay on top of your balance. You can set up automatic payments, view your account activity, and make payments online or through our mobile app.
Using a balance transfer credit card to fund your next vacation can be a smart financial move if you have a strategic plan in place. By choosing the right credit card, setting a budget, and creating a repayment plan, you can save money on interest and enjoy a stress-free vacation.
Read more credit card tips like this in our blog: “7 Credit Card Mistakes to Avoid.”
Learn more by reading “3 Borrowing Options Better than a High-Rate Credit Card.”
*APR = Annual Percentage Rate. Rate subject to change & based on an individual’s credit history. 0% Intro Rate is valid for purchases & balance transfer from other institutions for 365 days from card opening. The 0% rate will be in effect for up to 12 months from card opening & after 12 months the rate on all unpaid balances will convert to the rate member qualified for at card opening. 0% APR promotional rate is only valid on new VISA® Platinum Cards & subject to expire without prior notice.