Definition

Balance transfer

A balance transfer moves an existing debt, most often a credit card balance, to another account, frequently one with a lower introductory interest rate. The aim is to pay less interest while you work the balance down.

Transfers commonly carry a fee, the reduced rate usually lasts a limited period, and the standard rate afterwards may be higher than what you left. It is worth checking the fee, the length of the offer and what happens when it ends.

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