In the most basic terms, a balance transfer is a way of moving a debt from one credit card to another credit card. Transferring a balance is often done to save money, as the new credit card may have a lower interest rate (APR) than the old credit card.

Occasionally, credit cards have promotional balance transfer rates that can last from 3-15 months. For example, a credit card may offer a 0% APR on all balance transfers for the first six months of cardmembership. Promotional rates do end, though, so be sure to completely understand a specific balance transfer offer before applying.

It is important to find out how long the balance transfer rate will last and if there are any one-time balance transfer fees involved. Example: A credit card may offer a 0% promotional APR on balance transfers but may also charge a one-time balance transfer fee of 3% of the amount transferred.

It is also important to check whether or not a balance must be transferred within a specified amount of time in order to receive the promotional rate. Example: A balance must be transferred within the first three months of cardmembership to obtain the rate mentioned in the specific offer.

Every credit card is a bit different and promotional offers often change, so be sure to thoroughly look over the terms and conditions for each specific credit card before applying online.

· Compare balance transfer credit cards now and apply online if you find a credit card that fits your specific needs.

Posted in Credit Cards, Personal Finance

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This entry was posted on Wednesday, February 21st, 2007 at 10:36 am and is filed under Credit Cards, Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.