Q: What is a balance transfer?
A: A balance transfer is a term used to describe the action of transferring an outstanding balance from one credit card to another. For example if you have 2 credit cards, each with a $1,000 balance, and you decide to combine these balances onto a single card one card would now have a $0 balance while the other card would have a $2,000 balance.
People often do balance transfers to take advantage of low APR rates and save money. By transferring your balance from a high-APR card to a low (or 0%) APR card you can save a considerable amount on monthly interest fees. If you decide to transfer balances, make sure to check if there is a balance transfer fee. Balance transfer fees are usually a flat rate or a percentage of the amount you’re transferring. In some cases, the fee you’ll pay to transfer the balance is greater than what you’ll be saving in low interest rates, so always do the math.
If you’re in the market for a great balance transfer card with no balance transfer fee take a look at the Chase SlateSM – No Balance Transfer Fee card. Not only does it offer a 15-month, 0% introductory APR on purchases and balance transfers, but if you transfer your balances to this card in the first 30 days you won’t have to pay any balance transfer fees. Or consider the Discover® More – Limited Time No Balance Transfer Fee card, which also features no balance transfer fees along with a 12-month, 0% APR on purchases and balance transfers. In addition, Discover More users can earn up to 5% cash back on their purchase.