Transfer balance is the act of transferring one credit card balance to a different credit card. This is like shuffling around money that doesn’t really exist.
When you owe, lets say, $450 to credit card A at 24.99% interest then you could transfer your balance to credit card B with 19.99% interest, thus saving some interest on your credit card.
These are especially popular when some credit card companies (such as the Discover It® card) sometimes offer an introductory 0% APR on all balance transfers for 18 months.
Having an 18-month break from worrying about accumulating interest can be great. However, be responsible. Make sure to actually put money towards your owed amount. Otherwise you could end up in the hole.
Our favorite for balance transfers: Discover It® card
The Discover It® offers many new tools such as a card-freezing ability, a new way of earning bonus cash-back, and offers an easy-to-use mobile app.
You can earn 5% cash back on everyday purchases each quarter like grocery stores, restaurants, gas stations, and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases — automatically.
Next in line is the: BankAmericard®
The BankAmericard® credit card is wonderful for credit transfer balances. When you have a card that allows for a significant transfer amount, BankAmericard takes the prize. Lower interest rates are great.