What is a balance transfer and/or balance transfer rate?

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

Occasionally, credit cards have promotional balance transfer rates that typically last from 3-12 months. A "balance transfer rate" is the rate (APR) that is attached to balances transferred to that card from another card. This "balance transfer rate" may differ from the rate (APR) that is attached to new purchases made with the card.

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.

What is a balance transfer fee?

A fee charged by a credit card company to transfer a balance from another account to that particular credit card. It is generally 1% to 5% of the transferred balance (sometimes up to a certain dollar value). For example, a balance transfer fee could be 3% of the transferred balance up to a maximum of $50. Not all credit cards charge this fee.

Most Recent Credit Card Articles:

- 2008-06-27 How to Do Away with Credit Card Debts without a Balance Transfer Card
Nearly all US credit card holders have a credit card debt. And sometimes this debt becomes a bad headache for credit consumers. All those interest rates, fees, due dates make it really difficult to pay off your outstanding balance in full. Getting a balance transfer card with favorable terms and 0% ...

- 2008-06-03 Busting Your Credit Card Ghosts from the Past
A financially stable, two-parent family can afford raising children. But what if you are a single mother with low income? You can still make it through. But if being a stay-at-home mother is your full-time job? At least for some period, during the first year, when your baby needs you around 24/7? ...

- 2008-04-22 How Much Will a Debt Warrior Cost You?
In one of my previous articles titled Transforming Extra Calories into Extra Money on Your Credit Card I apparently paid no due attention to a traditional and perhaps the most effective method of clearing your credit card debt – using a balance transfer credit card. Customers who manage their cred...

- 2008-04-04 Transforming Extra Calories into Extra Money on Your Credit Card
Spring is associated not just with nature blossom and love. Spring is the time for spring cleaning and getting yourself ready for the summer. Some people clean, wash, and dry their places and rush to the gyms to lose a couple of pounds they have gained during the winter. But have you thought about a...

- 2008-02-26 Business – Together, Debts – Apart
Say you have a small business. You do everything right, your business prospers. But you are not the only owner. You share the business with a partner. And it's common practice for business owners to have business credit cards. With such plastics you can control all company's expenses and get busines...

- 2008-02-12 The Dangers of Becoming a Balance Transfer Addict
You can find numerous articles and tips on how to eliminate your credit card debt in the Net. About 90% of those guidelines imply using balance transfer. And this really seems to be the best decision for people carrying considerable credit card balances. What can be easier? You just get a balance tr...

- 2008-01-22 Digging Out of Credit Card Debt
There’s no need to tell about numerous advantages of using credit cards. They have already become an essential part of our everyday life. Owing a plastic is ten million times more convenient than carrying much cash. But, there is always a fly in the ointment. And credit card debt is definitely a f...

- 2008-01-11 The Balance Transfer Opportunities
January, time to return to my real life after the winter holidays, go on working and make one more attempt to follow my New year resolution. This year I plan to start jogging, eat more healthy food and reduce my monthly expenses. Even if I forget about my resolution (as I usually do) I will need to...

- 2007-12-26 Getting Over Christmas Debt Hangover
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- 2007-10-08 Before You Apply for A Bank Loan
... and before you apply for the dreaded payday loans with the 300% interest rate, have you considered borrowing from "people" instead? Maybe you don't know anyone who can lend you money- or you're too embarassed to ask someone you know for help- but there is a community of people who lend money t...