What Is Balance Transfer Credit Card Mean
The new card issuer or issuer of the card the balance is being transferred to supplies the cardholder with checks.
What is balance transfer credit card mean. This can be a good way to keep track of your balance and payments with everything in one place. The balance of your old card is paid off by your new card effectively swapping who you have to repay. Balance transfer a balance transfer occurs when the outstanding balance of one credit card or several credit cards is moved to another credit card account.
A balance transfer is when you pay off the balances on existing credit cards or loans by transferring them to another credit card account. A balance transfer lets you transfer the balance from one credit card or store card where you may be paying interest to another credit card. You ll still have to repay the debt but a balance transfer could help you combine multiple payments onto one card.
A balance transfer is a process that lets you move debt on a credit card or from a loan to a different credit card. The new bank card issuer makes this arrangement attractive to consumers by offering incentives. This is often done by consumers looking for a lower interest rate.
Credit card balance transfers are typically used by consumers who want to save money by moving high interest credit card debt to another credit card with a lower interest rate. A balance transfer apr is the interest rate you ll pay on balances you transfer to a credit card. This process is encouraged by most credit card issuers as a means to attract customers.
If you have debt on a credit card at a typical interest rate of 18 it could quickly become difficult to keep up the payments. If you have a high balance on a store credit card with a 21 percent apr you may be able to transfer that debt to a credit card with a lower rate during the introductory period saving money on interest and possibly helping pay debt faster. A credit card balance transfer is the transfer of the outstanding debt the balance in a credit card account to an account held at another credit card company.
Many credit card issuers offer introductory balance transfer aprs that are lower than the standard rates. Some credit card issuers offer special promotional interest rates on balance transfer to entice new customers. The cardholder then makes the check out to the card.