Balance Transfer
DEFINITION
A balance transfer happens when debt from one credit card is moved to another card, usually to take advantage of a lower interest rate.
ELI5
It is like moving your credit card debt to a cheaper place. You switch the amount you owe to another card so you may pay less interest.
Other related terms
Backtesting
Learn more
Hybrid Funds
Learn more
Lifestyle Inflation
Learn more
Second-timer applicant
Learn more
