Balance Transfer

A balance transfer is transferring a balance from one credit card or loan to another. You may reduce the interest you pay by moving balances with higher annual percentage rates (APRs) to cards with lower APRs. By transferring many accounts to one card and making a single payment, balance transfers can also make paying bills simpler.

Transferring a balance is moving debt from one credit card to another with a lower interest rate. When used carefully, a balance transfer can aid in debt management. These credit cards frequently offer 0% interest for a set period.

In this manner, you may conserve cash and use it to settle the debt more quickly. Remember that these discounted interest rates are only available for a short period before returning to their normal levels. You’ll frequently be charged a fee on the transfer amount, which will be applied to the balance.