What is a balance transfer credit card?

If you pay interest on your credit card and can't afford to clear the balance in full, then a balance transfer credit card is your secret weapon. It's a special type of interest-free credit card that lets you move your existing card debts to it, so you can clear your debts faster. This short guide explains how it works and what to watch out for.

How much does a balance transfer credit card cost?

The goal of a balance transfer is saving money, so you want to choose a card that helps you minimize your costs. The ideal balance transfer credit card comes with three big zeroes: A 0% introductory APR offer for balance transfers. A $0 annual fee. A $0 balance transfer fee (or a way to avoid paying such a fee).

Are credit cards good for balance transfers?

Some cards are good for balance transfers but others are not. A balance transfer is a type of credit card transaction in which debt is moved from one account to another. For those paying down high-interest debt, such a move can save serious money on interest charges if done strategically.

How do balance transfers work?

Balance transfers work by applying for a new card with a low introductory APR, initiating a balance transfer and paying down the balance. Some cards are good for balance transfers but others are not. A balance transfer is a type of credit card transaction in which debt is moved from one account to another.