What is a balance transfer?
Balance transfer: A balance transfer moves debt from one or more credit cards to another card, often one with a promotional rate for a limited time.
Many balance transfer cards charge a transfer fee, usually a share of the amount moved. When the promotional period ends, the card's standard APR applies to any remaining balance.
Card issuers decide whether to approve a transfer and how much credit to extend, which may be less than the full balance you want to move.
When you compare offers
Compare the transfer fee, the length of the promotional period and the standard APR with the cost of a debt consolidation loan.
Related guides
- Debt Consolidation Basics
What debt consolidation is, how it generally works, and questions worth asking before you combine multiple balances into one.
- How to Compare Debt Consolidation Loan Offers
How to compare debt consolidation loan offers on APR, origination fees, term length, total cost and prepayment penalties before you consolidate.
This glossary is for general educational purposes and isn't financial, legal or insurance advice. Lendara is not a lender and does not make credit decisions. Lendara is a free online marketplace that connects you with participating lenders and providers, who set their own eligibility rules, rates, fees and terms. Lendara may receive compensation from partners, which may affect which offers appear and their order.