What is a balance transfer?

A balance transfer is a method of transferring a balance from one credit card to another. This process is commonly used when someone has a large credit card balance and would like to move it to a card that has a lower interest rate. Balance transfers can offer a great way to save on interest and pay down a balance more quickly. In Illinois, the law states that credit card companies are not allowed to charge an individual more than the amount that was originally owed when a balance is transferred. This means that the company cannot add any additional fees to the balance that is being transferred. There is also a limit on how much of your balance can be transferred. Generally, you can only transfer up to 50% of the total amount of your balance. Before you decide to transfer a balance from your card to another, there are some important factors to consider. Some credit card companies charge a fee for balance transfers, so make sure you understand what the fees are before you complete the transfer. Additionally, there may be a limit to how long the transfer will be valid, so read the fine print on your agreement carefully. Ultimately, balance transfers can be a great way to save on interest and pay down a large credit card balance.

Related FAQs

What are the late payment fees for credit cards?
What is a credit card processor?
Can a creditor charge a late fee for a credit card payment?
What are the side effects of using a credit card?
How do I calculate my credit card APR?
What is a grace period for credit card payments?
How do I dispute unauthorized charges on my credit card?
Is there a limit on the amount of fees a credit card company can charge?
What is the difference between a regular credit card and a rewards credit card?
What is Credit Card Act of 2009?

What is a balance transfer?

Related FAQs

Related Blog Posts