# Balance transfer

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> Markdown URL: https://mediated.wiki/source/Balance_transfer.md
> Source: https://en.wikipedia.org/wiki/Balance_transfer
> Source revision: 1277028331
> License: Creative Commons Attribution-ShareAlike 4.0 International (https://creativecommons.org/licenses/by-sa/4.0/)

{{Short description|Banking term for moving an amount of money from one account into another}}
{{Use mdy dates|date=February 2024}}

A '''balance transfer''' is the transfer of (part of) the [balance](/source/balance_(accounting)) (either of money or credit) in an [account](/source/Account_(accountancy)) to another account, often held at another [institution](/source/institution).  It is most commonly used when describing a [credit card balance transfer](/source/credit_card_balance_transfer).

== How it works ==

Balance transfers allow people to move their balances from one credit card to another offering a lower interest rate for a set period of time.<ref>{{Cite news |last=Loudenback |first=Tanza |date=September 29, 2022 |title=A balance transfer can help you gain control of your debt, but it's not for everyone. Here's how it works |url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=159425732&lang=en-gb&site=eds-live&scope=site |access-date=2024-02-17 |work=Fortune.com |via=[EBSCOHost](/source/EBSCOHost)}}</ref>

The overall amount and the types of balances that can be transferred depends on the [credit card](/source/credit_card) as well as [credit score](/source/credit_score). Moreover, balance transfer should be done as per the timings allocated by the credit card company.

While many credit card issuers offer 0% interest balance transfers, some issuers also charge a transfer fee, which could range from 0–5%. As a result, consumers should evaluate the balance transfer interest rate during the promotional period, the length of the promotional period, and the balance transfer fee when deciding on which balance transfer promotion is best.

==Types==
There can be transfers between two similar types of accounts or different ones. These include:
*[Credit card](/source/Credit_card_balance_transfer) accounts
*Bank [savings accounts](/source/savings_accounts)
*Bank [checking accounts](/source/checking_accounts)
*Trading accounts at [financial institution](/source/financial_institution)s

Transfers are sometimes facilitated by companies trying to recruit new [consumer](/source/consumer)s. Sometimes transfers are accompanied by [transaction cost](/source/transaction_cost)s paid by the consumer.

==See also==

*[Credit card balance transfer](/source/Credit_card_balance_transfer)

==References==
{{Reflist}}

Category:Accounting terminology

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Adapted from the Wikipedia article [Balance transfer](https://en.wikipedia.org/wiki/Balance_transfer) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Balance_transfer?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.