What Is A Balance Transfer Credit Card

by Violet WillettMarch 6, 2024
What Is A Balance Transfer Credit Card

A balance transfer credit card is an account that allows you to move debts from one place to another. Most times, these cards offer consumers introductory 0% APR (or zero interest) on their purchases for a limited time- usually between 12 and 20 months.

Using a balance transfer credit card can help people who are seeking to get out of debt. The savings on interest begins as soon as you start transferring your balances, and every penny that goes towards repayment will go straight toward reducing what’s owed!

How Do Balance Transfers Credit Cards Work?

When applying for a balance transfer credit card, you’ll be able to indicate which balances are currently on other accounts and want to be transferred over. Once approved by the lender, enter in your new account information as well as how much money from each previous creditor would like moved towards this one so they can take care of those debts too!

You should also be aware that you might end up paying a balance transfer fee of 3 percent to 5%. This can vary depending on the card, but it will likely come with at least $5 as a minimum requirement for any transfers.

Remember that your balance transfer card account can take up to one month to reflect the new information. Make sure you continue making payments on all of your existing credit cards until this process has been completed and any final interest charges have been paid off completely!

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