What is a Balance Transfer Credit Card?
Back in the day, I had accumulated a good chunk of dues on my credit card and the interest charges were going to be insanely high. I had to look for ways to deal with it and thats when I learned about balance transfer. Understanding what is a balance transfer credit card is easy. It is a credit card that allows you to move your outstanding debt from one or more credit cards onto a new card. I did this because I was getting an offer of zero-interest as an introductory rate for a limited period.
So this is how it goes down:
- You apply for a balance transfer credit card
- The issuer pays off your existing credit card debt and puts the amount as new balance on your balance transfer credit card.
- You get an introductory offer of lower or 0% interest rate to pay off your principal amount.
You can end up saving on interest by opting for a balance transfer credit card and end up making a faster debt repayment. That’s all balance transfer credit card is about.