Curious about balance transfers? People with credit cards may receive ads or offers suggesting they transfer their current balance to a different card provider.
This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.
Read this article to learn what a balance transfer is, how it may work, and potential ways to use it wisely.
A credit card balance transfer generally occurs when a person moves their outstanding balance from one credit card to another. It may also be possible to move balances from several credit cards onto one single card.
Understanding the terms and conditions of any new credit card is crucial before proceeding with a balance transfer.
People may transfer credit card balances for various reasons. Common benefits include:
There are possible risks and disadvantages associated with balance transfers, such as:
The steps to undertake a credit card balance transfer can differ by card provider. Here’s what the process may look like:
Here are some potential missteps to be aware of:
Consider the following factors in advance of completing a balance transfer:
Check out these balance transfer tips before getting started:
Smart spending — and only spending within one’s means — may potentially help people meet repayment deadlines and pay off full balances to avoid excessive interest.
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