Balance transfer
Moving debt from one credit card to another, usually to get a low or 0% promotional APR for a set number of months.
A balance transfer can save interest and help you pay debt faster. Most cards charge a transfer fee, often 3% to 5% of the amount moved. The promo rate ends on a set date, and then the regular APR applies to what is left.
It works best with a plan to pay the full balance before the promo ends, and no new spending on the card.
Example
Moving $4,000 with a 3% fee adds $4,000 × 3% = $120, for $4,120 total. To clear it during a 15-month 0% period, pay $4,120 ÷ 15 = about $275 a month.