What is a balance transfer?

About balance transfers

A credit card balance transfer is the act of moving an existing debt from one credit card to another credit card. With a balance transfer, the existing balance is transferred to another credit card and then is subjest to the new card’s interest rates and fees.

Balance transfers are often done to save money, as the new credit card may have a lower annual percentage rate (APR) than the old credit card. Occasionally, a credit card will have a promotional balance transfer rate (as low as 0%) that typically last from 6-15 months.

Before transferring a balance, take the time to completely understand the specific balance transfer offer you are interested in. Find out how long the promotional balance transfer rate will last, what the interest rate will increase to after the promotional period, and if there are any one-time balance transfer fees involved.

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 30 days 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 card before applying.