credit cards

What is a balance transfer?


What is a balance transfer?

The financial term of the day is: "Balance Transfer."

When you move debt from one credit card to another, that's called a balance transfer. Card issuers see unpaid debt as a potential moneymaker, because it can generate interest and fees, so cards may offer low, introductory rates to encourage balance transfers coming in and may slap customers with balance transfer fees to keep debt from going out. 

In a balance transfer, a credit card holder shuffles debt among the plastic. The card companies may have incentives for doing this -- or disincentives.

To find a credit card that has what you're looking for, visit the credit cards section at


Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 15.86% --0.00 15.86%
Cash Back Cards 16.37% --0.00 16.37%
Low Interest Cards 11.10% --0.00 11.10%
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.


Credit Card Blog

Jeanine Skowronski

CFPB unveils payday loan plan

The oft-maligned payday lending industry may be about to get a makeover.  ... Read more

Partner Center

Connect with us