# Balance Transfer

*Borrowing & Credit — Finicade finance glossary*

A balance transfer moves debt to a card offering a low or 0% promotional rate, usually for 12–21 months, for a fee of 3–5% of the amount.

A balance transfer moves debt from one credit card to another offering a low or 0% promotional rate, typically for 12–21 months, for a fee of 3–5% of the amount. Done properly it's one of the cheapest ways to clear card debt, because every payment attacks principal. Done carelessly it's a trap: the promotional rate ends, any remaining balance reverts to the standard rate, and new purchases on the card may not share the promotion at all.

**Also known as:** balance transfer card, 0% balance transfer

**Related terms:** [Introductory APR](https://finicade.com/glossary/introductory-apr), [Credit Card](https://finicade.com/glossary/credit-card), [Debt Consolidation](https://finicade.com/glossary/debt-consolidation), [APR (Annual Percentage Rate)](https://finicade.com/glossary/apr), [Credit Utilization](https://finicade.com/glossary/credit-utilization)

Source: https://finicade.com/glossary/balance-transfer