A balance transfer moves debt from a high-interest credit card to one with a lower rate, typically offering a 0% introductory APR. During this promotional period, your entire payment goes toward reducing the principal debt instead of interest charges.

Best candidates for balance transfers are those who:

• Have good to excellent credit (typically 690+ score)
• Carry debt that would take several months to pay off
• Currently pay high interest rates on credit card debt
• Can make a plan to pay off the balance during the 0% period

Important considerations before transferring:

• Balance transfer fees typically range from 3% to 5%
• You usually can't transfer between cards from the same issuer
• Credit limits may be lower than your total debt amount
• The 0% APR period is temporary

How to complete a balance transfer:

1. Apply for a card with 0% intro APR on transfers
2. Initiate the transfer through your online account or phone
3. Wait for the transfer to process (up to 2 weeks)
4. Make regular payments during the 0% period

Ideal balance transfer cards offer:

• 0% intro APR period (12-21 months)
• No annual fee
• Low balance transfer fee
• Additional rewards or benefits for long-term value

Consider alternatives if:

• You can pay off the debt within 3 months
• You don't qualify for good 0% APR offers
• The transfer fee exceeds potential interest savings
• A personal loan might offer better terms

Success with a balance transfer requires disciplined spending habits and a solid repayment plan to avoid accumulating new debt while paying off the transferred balance.

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