If you have multiple credit cards with variable interest rates, you may be interested in consolidating them all into a single card. When you have only one credit card, you will pay the same interest rate for your debt. This can be an ideal situation for individuals who have cards with high annual percentage rates. You will need to review offers from multiple credit card companies to consolidate your debt onto one single card.
Step 1
Find a zero percent balance transfer credit card. A zero percent introductory annual percentage rate card can help you get rid of multiple credit cards. You can find these offers through websites like Credit Card Guide. Apply for one of these credit card offers to move your debt to a low rate.
Step 2
Transfer the balance from your existing credit cards to your new card. The way that a balance transfer credit card works is that the company moves either the entire or a portion of your balance. The balance moves to your new credit card; you will make payments to the one company. Your debt cannot be more than the maximum limit allowed by the company on balance transfers. You will either be given checks by the company to pay off the credit card companies or you will provide them with the account information and it will handle transferring the balance.
Step 3
Leave the other accounts open for the time being. Once the balance has been moved, you have the option to close the other credit card accounts, but you should not close the existing accounts right away. You will want to keep one or two of your older accounts open in order to show an established credit history on your credit report. Closing multiple accounts simultaneously can adversely affect your credit score.
Tips and Warnings
- Call your current credit cards to inquire about balance transfer offers. As an established customer with good credit history with the company, they may be able to offer you a good rate. Keep in mind that the zero percent interest rate is only for a set period of time, typically between six to nine months. Make sure the rate is still low on the card after the introductory period has ended.
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