What does Balance transfer mean?
Balance transfers usually occur when a customer decides to move the outstanding balance of one or more of his or her credit cards to another credit card account. The procedure is usually done in order to find a credit card issuer with lower interest rates. It is basically a transfer of debt from one credit card to another.
Some issuers actually offer introductory annual percentage rates to new customers who have transferred their balance from a different company. These APRs are way lower than the standard rates thus making it an appealing offer. However, in order for the balance transfer to be completed, the customer is required to pay a nominal fee.