What does transfer balance mean

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Trending Decoding your tax bracket Beyond salary: Benefits may matter more than you think 6 steps for first-time tax filers. Personal Banking. What is a balance transfer and how does it work? Share Close share. Save Close save Added to My Priorities. Balance transfers can be a helpful credit card tool for paying down higher interest debt.

Savings on credit card interest. Total you pay. Sources: CreditCards. When does the promotional rate end? Promotional or introductory new card rates often end 9—21 months after they start.

To maximize your savings , determine how long the low rate lasts and how much you can pay off before it ends. What are the up-front fees? However, the long-term savings from the lower promotional rate can often outweigh the cost of this fee. What happens when the promotional rate expires? Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page.

However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money. A balance transfer can be a good idea to save money on interest charges. Balance transfers work by applying for a new card with a low introductory APR, initiating a balance transfer and paying down the balance. Some cards are good for balance transfers but others are not. A balance transfer is a type of credit card transaction in which debt is moved from one account to another.

For those paying down high-interest debt, such a move can save serious money on interest charges if done strategically. Balance transfers come with certain costs and limitations, though.

And if your balance transfer card's limit is low, you might not be able to transfer your full balance. While the exact process for balance transfers can vary widely, here are the steps you generally have to take when working with major issuers:. To qualify for the best offers, you generally have to have good or excellent credit typically, FICO scores of at least Initiate the balance transfer.

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Calculator Redundancy pay calculator. Home Everyday money Types of credit. Everyday money Types of credit. Should you transfer your credit card balance? What is a money transfer? How to transfer a balance. What is a balance transfer? Transferring your balance means moving all or part of a debt from one credit card to another. Is your household income getting squeezed? Check you are receiving all the benefits or grants you might be entitled to.

Back to top. Want to feel more in control of your finances? You might be able to do this online. How much it costs. Things to watch out for. Top tip. When that period ends, the interest rate will go up. Check how well the final rate compares with other cards, and see if you can get a better deal elsewhere. Check transfer limits — check with your credit provider what limits might exist. Find recommended balance transfer cards on the MoneySavingExpert website.

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