Balance Transfer
GeneralGlossary term
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 FeeA 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 DebtMoney 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.
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