Loans & Credit

What Is a Balance Transfer?

A balance transfer moves debt from one credit card or loan to a different credit card, often one offering a low or 0% introductory rate for a limited time. The new card usually charges a balance transfer fee, commonly a percentage of the amount moved, and the promotional rate ends after a set period.

Costs to Consider

Total cost = transfer fee + interest after the promotional period ends. Whether a transfer reduces cost depends on how much of the balance is repaid before the promotional rate expires.

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🔗 Related Terms

APR (Annual Percentage Rate) Revolving Credit Debt Consolidation Credit Utilization Ratio

More Loans & Credit Terms

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Last updated: September 27, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.