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.

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Product Rate Change Last week
Balance Transfer Cards 16.12%  0.05 16.07%
Cash Back Cards 16.45%  0.01 16.44%
Low Interest Cards 11.23%  0.02 11.21%
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