Balance Transfer

Business, Legal & Accounting Glossary

Definition: Balance Transfer

Balance Transfer

Quick Summary of Balance Transfer

A transfer of debt from one credit card to another. The most common reason this is done is to reduce the interest rate being paid.

Full Definition of Balance Transfer

The credit card market-place is highly competitive. You may well find cards in the market that offer rates that are significantly lower than your existing credit card. Indeed, there are several credit cards available that promote interest-free periods as introductory offers.

Therefore, if you have an outstanding balance on your existing credit card on which you are paying interest, you may find it worthwhile to compare the costs of your current card with those available in the market. If you find a card that makes your debt less expensive to service you may take out the new credit card and arrange for the outstanding balance on your old card to be transferred to it.

Remember, as a rule of thumb, credit cards are an expensive way to borrow. Anything you can do to make your borrowings cheaper puts more of your money back in your pocket.

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Balance Transfer. Payroll & Accounting Heaven Ltd.
August 08, 2022
Chicago Manual of Style (CMS):
Balance Transfer. Payroll & Accounting Heaven Ltd. (accessed: August 08, 2022).
American Psychological Association (APA):
Balance Transfer. Retrieved August 08, 2022
, from website:

Definition Sources

Definitions for Balance Transfer are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.