What is a balance transfer?

A balance transfer is a process of moving an existing credit card balance from one credit card to another. It is usually done to take advantage of lower interest rates or promotional offers provided by the new credit card company. By transferring the balance, the borrower can pay off their debt at a lower interest rate and potentially save money on interest charges. Balance transfers are typically offered with a low or 0% introductory interest rate for a certain period of time, often between 6 and 18 months. After the introductory period, the interest rate may increase, so it is important for borrowers to pay off the transferred balance before the promotional period ends.