Balance Transfer
Financial term in the General category
Definition
Moving debt from one credit card to another, typically to take advantage of a lower interest rate. Often includes a balance transfer fee of 3-5% of the transferred amount.
Related Terms
Balance Transfer Fee
A fee charged for transferring debt from one credit card to another, typically 3-5% of the transferred amount. A $5,000 transfer with a 3% fee costs $150.
Credit Card Debt
Money owed on credit cards that carries over from month to month, accruing interest. The average American household carries over $6,000 in credit card debt at 20%+ APR.
Frequently Asked Questions
What is Balance Transfer?
Moving debt from one credit card to another, typically to take advantage of a lower interest rate. Often includes a balance transfer fee of 3-5% of the transferred amount.
Why is Balance Transfer important in personal finance?
Balance Transfer is an important general concept that helps individuals make better financial decisions. Understanding Balance Transfer can improve your financial planning and help you achieve your money goals.
How does Balance Transfer relate to Balance Transfer Fee?
Balance Transfer and Balance Transfer Fee are related financial concepts. A fee charged for transferring debt from one credit card to another, typically 3-5% of the transferred amount. A $5,000 transfer with a 3% fee costs $150.
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