Comparing Watermelons to Watermelons


If you were offered two special offers to balance transfer your higher rate credit cards and loans with other lenders to one credit card for 18 months, would you take it?  If so, which would you choose?

  •  0% Annual Percentage Rate (APR) with a 4% Balance Transfer Fee OR 
  • 4.49% APR with a $0 Balance Transfer Fee

Before you make a quick decision for the best choice, let’s really discern your offers.

Lender Debt Balance Balance Transfer Fee Total Balance to Transfer to Lender Annual Percentage Rate (APR) Months at the Special Rate Minimum Payment to Pay Off Debt During Special Offer Finance Charge Total Payment
Lender #1 $5,000  4% of balance (addtl. $200 of $5,000) $5,200 0% 18 months $288.89 $0 $5,200.00
Entrust FCU $5,000 $0 $5,000 4.49% 18 months $287.76 $179.61 $5179.61

Essentially you have two options for paying off this $5,000 debt in 18 months. Based on our calculations above,

  • Your monthly minimum payment is less by a little over $1 with Lender #2. Nothing to write home about, but still it’s a $1 and every one of them count!
  • At the conclusion of 18 months, you will save $20.39 in the total payment with Lender #2. This $20 could be the seed money to start an emergency savings account or tackling the next debt to be paid off. So who do you prefer to work with? Lender #1 or Lender #2?

Learn more about our balance transfer offer here, which includes a loan calculator to recreate your own scenario!


Author: Greta Kidd, Vice President or Marketing and Outreach at Entrust Financial Credit Union
About Greta: Greta is an advocate for helping individuals fulfill their life’s calling, especially when debt may get in the way. She is a certified Crown Financial Ministries Budget Coach and attends presentations about stewardship and money management consistently. Greta believes we need to be intentional about creating time and space in our very busy lives to study scripture. This is an opportunity to learn how to become better stewards from the best teacher of all, God, with our time, talent and money.