What does it mean to transfer balances?

Answer 1

When you have a credit card and you use it, you have a balance with the bank that issues your credit card. Let's say that bank A just approved you a credit card with a credit limit of 5,000 dollars. As soon as you get it you go to the mall and spend 1000. Now your balance in the credit card is 1000. Let's suppose now that your APR is 15%. This means that besides the 1000 dollars that you owe bank A, you will have to start paying interest on this amount. This is the price that bank A charges you. Let's say now that one month after you got your credit card, bank B sends you a credit card offer by mail; the offer states that you can get a 0% APR for one year on balance trasnsfers. What this means is that bank B is giving you the option of paying off the debt that you have with bank A. If you decide to do so, you will owe money to bank B instead of bank A. What happened is that when you decided to take advantage of the offer from bank B, bank B paid bank A what you owed, so you don't owe bank A a penny. So what's the point of owing A or B? Anyaway you owe the same... Well, the APR is the answer! The difference between bank A and bank B is the APR they charge: while A charges you a 15% APR, B charges you NOTHING for one year! So with A you have to start paying interests right away, while with B you start paying one year later (obviously only on the balance that you have at that moment)

Answer 2

on a credit card you are given checks from the new issuing company and you write a check to the old company. Before you do so read the fine print as this is a cash advance on the new account. Some are just ploys to get you a hit for the cash advance on the new card. If done properly you may reduce your monthly out go and interest rate.

Answer 3

It's the process of removing some money out of one account to another. You're basically moving money around depending on the reason. Sometimes I'll transfer money out of my checking account and put it into my savings account at the bank. I hope that helps.

Answer 4

Basically moving one credit card balance to another... You only want to do this if the interest rate is lower on the other card. Don't forget to read the fine print.

Answer 5

You use one credit card to pay off another which will offer you a lower interest rate and better terms. It can mean you can save a LOT of money on interest payments.

Answer 6

It means to move money from one account to another...."transfer-move"...

Answer 7

Exchange money from one bank account to another