Balance transfer: Difference between revisions
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{{Short description|Banking term for moving an amount of money from one account into another}} |
{{Short description|Banking term for moving an amount of money from one account into another}} |
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{{Use mdy dates|date=February 2024}} |
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{{More citations needed|date=February 2024}} |
{{More citations needed|date=February 2024}} |
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'''Balance transfer''' is the transfer of the [[balance (accounting)|balance]] in an [[Account (accountancy)|account]] to another account. Frequently balance transfers are for accounts that are run by different financial services institutions. Balance transfer is most commonly used, when describing a [[credit card balance transfer]]. However, a balance transfer is most often undertaken for [[cash]] that has previously been paid into an account. |
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== How it works == |
== How it works == |
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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 |
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=29 September 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 |publisher=fortune.com }}</ref> |
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The overall amount and the types of balances that can be transferred depends on the [[credit card]] as well as [[credit score]]. Moreover, balance transfer should be done as per the timings allocated by the credit card company. |
The overall amount and the types of balances that can be transferred depends on the [[credit card]] as well as [[credit score]]. Moreover, balance transfer should be done as per the timings allocated by the credit card company. |
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While many credit card issuers offer 0 |
While many credit card issuers offer 0 percent interest balance transfers, some issuers also charge a transfer fee, which could range from 0-5 percent. 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. |
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==Types== |
== Types == |
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There can be transfers between two similar types of accounts or different ones. These include: |
There can be transfers between two similar types of accounts or different ones. These include: |
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*[[Credit card balance transfer|Credit card]] accounts |
* [[Credit card balance transfer|Credit card]] accounts |
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*Bank [[savings accounts]] |
* Bank [[savings accounts]] |
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*Bank [[checking accounts]] |
* Bank [[checking accounts]] |
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*Trading accounts at [[financial institution]]s |
* Trading accounts at [[financial institution]]s |
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Transfers are sometimes facilitated by companies trying to recruit new [[consumer]]s. Sometimes transfers are accompanied by [[transaction cost]]s paid by the consumer. |
Transfers are sometimes facilitated by companies trying to recruit new [[consumer]]s. Sometimes transfers are accompanied by [[transaction cost]]s paid by the consumer. |
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==See also== |
== See also == |
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*[[Credit card balance transfer]] |
*[[Credit card balance transfer]] |
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==References== |
== References == |
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{{Reflist}} |
{{Reflist}} |
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Revision as of 18:03, 9 May 2024
 | This article needs additional citations for verification. (February 2024) |
Balance transfer is the transfer of the balance in an account to another account. Frequently balance transfers are for accounts that are run by different financial services institutions. Balance transfer is most commonly used, when describing a credit card balance transfer. However, a balance transfer is most often undertaken for cash that has previously been paid into an account.
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.[1]
The overall amount and the types of balances that can be transferred depends on the credit card as well as 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 percent interest balance transfers, some issuers also charge a transfer fee, which could range from 0-5 percent. 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 accounts
- Bank savings accounts
- Bank checking accounts
- Trading accounts at financial institutions
Transfers are sometimes facilitated by companies trying to recruit new consumers. Sometimes transfers are accompanied by transaction costs paid by the consumer.
See also
References
- ^ Loudenback, Tanza (29 September 2022). "A balance transfer can help you gain control of your debt, but it's not for everyone. Here's how it works". fortune.com. Retrieved 2024-02-17.