A balance transfer allows a person to transfer a balance from one credit card to another credit card. There are many reasons why a person would want to do this. First, a person might wish to transfer a balance from one card to another if the new card is running a special with a 0 balance transfers option. This would mean that for the balance that the person transfers in, there would not be any interest rate. Normally this 0% interest rate is just a promotional term and will end after the specified period of time, but that time of 0% interest could allow a person to pay down a good portion, if not all of their credit card debt balance. If a person is struggling to pay down their balance and they wish to find a way to get ahead on their debt payments, this could be an excellent option to pay down more debt than the person normally would be able to.

Another reason that a person would want to transfer their balances from one credit card to another is if the current credit card company has changed their fee structure. Many credit card companies change their fee structure every year and the change in fee structure might take a low fee card and change it into a not so low fee card. This change could cost a person a lot of extra money in fees and penalties, which might motivate that person to transfer their balance to another card.

When a person makes the decision to transfer their balance to a new card they will need to pay close attention to the fee that is associated with a balance transfer. Many credit cards will offer 0 balance transfers but many other credit cards will only offer up to a 20.0% percent balance transfer to bring in a balance from another card. Many credit card companies will even charge a fee for the person to transfer their entire balance out of their credit card company and to another company. These fees are legal and can negate the benefit of a 0% promotional period with the new credit card balance transfer. Transferring credit card balances can be a very wise financial move, as long as the terms are correct and the person does not lose money during the transfer. Having a low fee credit card will help a person pay off their debt as quickly as possible.

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