What is a balance transfer?


Quick Answer

A balance transfer is when a consumer transfers a balance from one credit card to another credit card, according to Discover. Balance transfers usually come with a fee, which is either a flat rate or a percentage of the transfer amount.

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What is a balance transfer?
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Full Answer

One reason for a balance transfer is if a person has a large balance on a high-interest credit card, then he gets approved for a card with a lower interest rate. By transferring the balance from the card with the higher interest rate, the customer can save money, according to Credit Karma. Some credit card applications have a field to enter balance transfer information to allow the immediate transfer after approval.

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