Balance Transfer

A balance transfer is the process of moving the outstanding balance from one credit card to another, typically to take advantage of a lower interest rate, special promotional offers, or consolidate debt.

Credit card companies often offer balance transfer promotions to attract new customers. These promotions may include a 0% introductory interest rate for a certain period, which can save you money on interest charges if you have a high-interest credit card balance.

However, it’s important to compare the terms and conditions of different balance transfer offers, including any balance transfer fees, the duration of the promotional period, and the interest rate that will apply after the promotional period ends.

Also, avoid closing the old card unless you’re certain you won’t need it.

• Related Terms: Credit Card, Interest Rate, Debt, APR, Balance Transfer Fee