Balance Transfer

A financial transaction in which an individual moves their outstanding credit card balance to a new card.

More Details

A balance transfer is the process of moving the balance on one credit card to another credit card. This is typically done to take advantage of a lower interest rate or other promotional offer on the new card.

Example

If you wanted to move a balance from an old credit card with an interest rate of 18% to a new credit card that offers a 0% interest rate on balance transfers for the first 12 months, you would open the new credit card account and request a balance transfer. The new credit card issuer would then pay off the balance on your old card and transfer it to the new card. You would then be responsible for making payments on the transferred balance to the new credit card issuer.

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