What is a balance transfer credit card?
A balance transfer moves credit card debt from one card to another with the goal of saving money on a lower interest rate. Balance transfers can be an effective way of paying down debt, as the lower interest rate allows you to put more of your money toward the principal.
What is a balance transfer credit card?
Balance transfer credit cards are a special type of card that offers you a low introductory interest rate (occasionally as low as 0%) for a limited time, usually six months to a year. If you have mounds of debt on high-interest cards, you can transfer the balance to these lower interest cards. The idea is that you can pay off your debt faster and owe less overall, since you’ll incur less interest with your lower rate.