What are balance transfer credit cards?
If you carry a high balance on your current credit card, you may benefit financially by transferring the balance to another credit card that offers more favorable repayment terms. You can then pay off the debt according to the terms of your new credit card agreement.FactsA balance transfer credit card is any credit card that will pay off your balance with your current credit card company and transfer your debt to a new card.BenefitsIf you are working toward paying off your debts, transferring your current debt to a balance transfer credit card will allow you to pay off the debt more quickly if your new credit card offers a low introductory rate.ConsiderationsBefore your current credit card balance can be transferred to a new card, the credit card company offering the balance transfer will review your credit report and score to ensure that you qualify.MisconceptionsA common misconception is that balance transfer credit cards are always a better option, but this may not be the case.
A balance transfer is when you transfer your previous balance from your previous card to your new card.If you have a credit debt from another card that comes with high APR, then balance transfer credit cards would be best to consolidate your debt.You can move your high rate balance from your card to a better one.
