Glossary
Balance transfer
A balance transfer moves debt from one credit card to another, usually to take advantage of a temporary low or 0% introductory interest rate on the new card.
Balance transfers exist to give you breathing room: instead of paying 30%+ APR on an existing balance, you move it to a card offering, say, 0% for the first 6–12 months, and use that window to pay down the principal without new interest accruing.
Two costs to check before transferring: a one-time balance transfer fee (commonly 1–5% of the amount moved, charged upfront), and what the APR reverts to once the introductory period ends. A transfer only makes sense if the fee plus any remaining balance at the end of the promo period still beats what you would have paid staying put.
A balance transfer does not reduce what you owe — it only changes who you owe it to and at what rate. Missing a payment during the promo period can void the introductory rate entirely on some cards, so treat the payment schedule as fixed, not flexible.