What does transfer mean on a credit report?
A balance transfer involves moving debt from one account to a new one with a low or 0% interest rate. Although the principal amount of debt remains the same, you save money in interest payments, which in turn could help you pay off your debt faster while improving your credit history and financial situation.
What are the negatives of a balance transfer?
- You’ll usually pay a balance-transfer fee.
- Your APR could skyrocket after the promo period.
- New purchases often do not enjoy the promo rate.
- You may not be able to transfer all of your debt to one card.
- You need good credit to get a balance-transfer card.
- Timing is important.
- On-time payments are key.
Is a money transfer the same as a cash advance?
A balance transfer involves transferring debt from an existing credit card to a new or another existing credit card to save on interest charges. A cash advance, on the other hand, is when you use your credit card to get cash either through an ATM or by transferring it to your bank account.