What are balance transfer credit cards and how do they work?

What are balance transfer credit cards and how do they work?

Balance transfer credit cards allow you to move debt from one card to another, often with lower interest rates.

What are the benefits of using a balance transfer credit card?

The main benefits include lower interest rates, potential savings on interest payments, and a way to consolidate debt.

Are there any fees associated with balance transfers?

Yes, many cards charge a balance transfer fee, typically around 3-5% of the amount transferred.

How long do the promotional rates last?

Promotional rates usually last between 6 to 18 months, depending on the card issuer.

What happens after the promotional period ends?

After the promotional period, any remaining balance will be subject to the standard interest rate of the card.