What is a balance transfer credit card?

Balance transfer cards typically have low interest rates and allow you to pay off high-interest debt without sacrificing your finances later. The rewards seeker. While some balance transfer credit cards do offer rewards, you can generally find more lucrative programs attached to traditional or premium rewards credit cards. The luxury traveler.

How do I request a balance transfer?

The exact process for requesting balance transfers varies by issuer, but generally follows this format: Many balance transfer cards offer 0% APR offers but select cards offer additional benefits like 0% APR on new purchases or the capability to earn cash back on purchases. Generally, balance transfer cards will require good credits.

Does a balance transfer increase credit utilization?

Completing a balance transfer also means you may increase your overall available credit when you take out a new card, which could lower your credit utilization ratio. It’s recommended that you keep your credit utilization below 30%, so adding a new card can help maintain a positive ratio.