How Much Would I Save if I Cut My Credit Card Interest to Low APR for a Year?

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If you’re like many Americans, you probably have some credit card debt. You may even be lugging around a significant amount of debt, watching helplessly as each new monthly statement rolls in. The crushing interest accruals make it feel impossible to get caught up.

Carrying high-interest debt is a surefire way to get yourself financially stuck, potentially for the long term. If you want to achieve your big life and money goals, you need to dig yourself out of debt. 

A balance-transfer credit card could be the answer. The Navy Federal Credit Union Platinum Card, for instance, offers a 0% introductory APR² for 12 months from account opening, offering you a powerful tool to pay off your debt faster as you work toward saving more and budgeting wisely. After that, a variable APR between 10.99% and 18% applies.

When you move your balance to a credit card with a 0% introductory APR², like the Platinum Card, you can focus on reducing your principal balance. This can help you pay off your debt faster and could save you money. How much exactly? You might be pleasantly surprised.

Cut Out the Interest 

Let’s say you’re starting out with $5,000 in credit card debt at 27.70% APR. It’s important to understand that credit card interest isn’t calculated as simple interest — interest is compounded monthly, meaning every month, the amount you owe grows based on the previous month’s balance. This causes the amount you owe to grow faster than simple interest would. 

For example, at 27.70% APR, your $5,000 balance could grow to $6,575 in one year if you pay only the minimum amount due. That means you’d pay $1,575 in interest.

If you switch to a balance-transfer credit card like the Navy Federal Credit Union Platinum Card, you can get a 0% introductory APR² for 12 months. After that, a variable APR between 10.99% and 18% applies.That’s a whole year without interest payments interrupting your financial goals — potentially saving you thousands when you take those savings and apply them directly to your balance. Watch as your debt goes down and the light at the end of your debt tunnel grows brighter.

Make Large Purchases Easier 

Sometimes, high-interest credit card debt is unavoidable, such as when a major appliance breaks down at the most inconvenient time. Rather than get stuck paying a high APR, you could transfer your balance to a Navy Federal Credit Union Platinum card and take advantage of the 0% introductory APR². After the introductory period, a variable APR between 10.99% and 18% applies.

For instance, if you need to make repairs to your car for $2,798 and put it on a credit card with a 27.70% APR, your interest begins to add up fast, costing you around $776 in interest over the course of a year, if you only make minimum payments. 

By transferring your balance to the Navy Federal Credit Union Platinum Card, you won’t have to worry about the cost of repairs accruing interest for 12 months, sparing yourself nearly $800 in interest charges.

Pay Down Multiple Cards 

If you’re someone with an average or good credit score who happens to be juggling multiple credit card balances, you know how overwhelming it can feel to keep up with managing due dates. One of the perks of a balance-transfer card is that you can consolidate your debt into one easy-to-remember payment. 

Even if your repayment period extends beyond the 12-month 0% introductory APR² offer, the Navy Federal Credit Union Platinum Card’s ongoing variable APR ranges from 10.99% to 18.00%, far lower than other issuers’ rates. This can result in significant savings over time, making your debt repayment goals that much more achievable. 

Save Money With Card Perks 

In addition to saving hundreds — or even thousands — of dollars in interest, the Navy Federal Credit Union Platinum Card can also save you money in other ways. 

The Platinum Card has no annual, balance transfer, cash advance or foreign transaction fees². This means there are no added fees to the balance you transferred. After the 0% introductory APR² period, a variable APR between 10.99% and 18% applies.

Your Platinum Card can also provide savings while you travel, thanks to perks like a rental car collision-damage waiver and roadside assistance¹. Its fraud notification³ features can alert you to suspicious activity, helping to safeguard you from potential theft.

Interested in a balance-transfer card? It’s easy to get started here. You could save money on interest with a Navy Federal Credit Union Platinum Card. 

Bottom Line

A balance-transfer credit card can be a game-changer for tackling credit card debt and saving big on interest. By cutting out interest for 12 months, you can make significant progress toward your financial goals, whether you’re paying off a large balance, managing multiple cards, or dealing with an unexpected expense. 

Balance transfers aren’t for everyone. It’s crucial to evaluate your specific financial situation and ensure this strategy aligns with your needs. With smart planning and timely payments, a balance-transfer card can help you take control of your debt and start building the financial future you envision.

¹ Certain terms, conditions, and exclusions apply. Please refer to the Visa® or Mastercard® Benefits Site or Guide for more information:

Visa® Benefits Site. Visa® Guide. Mastercard® Benefits Site. Mastercard® Guide.

² As of 02/03/2025, rates range from 10.99% APR to 18.00% APR, are based on creditworthiness, and will vary with the market based on the US Prime Rate. ATM cash advance fees: None if performed at a Navy Federal branch or ATM. Otherwise, $0.50 per domestic

transaction or $1.00 per foreign transaction. Balance transfer offer: Application must be submitted by 3/31/2025. Offer valid for balances transferred from non-Navy Federal credit cards within 60 days of account opening. Maximum total transfer amount is limited to your available credit line. Balance transfers using convenience checks are excluded from this offer. If you transfer a balance with this offer, interest will be charged on purchases made with your credit card unless your purchases have a 0% APR or you pay the entire balance, including any transferred balances made under this offer, in full each month by the payment due date. Offer excludes Navy Federal Home Equity Line Platinum credit cards. Limit of one promotional offer at account opening. Navy Federal reserves the right to change or end this offer at any time.

³ Message and data rates may apply. Visit navyfederal.org for more information.

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