What Is a Balance Transfer?

The balance transfer is a transaction that commonly takes place in the financial world. With many different types of accounts, you could potentially utilize a balance transfer at some point. Here are the basics of the balance transfer and how it works.

Credit Cards

One of the most common types of balance transfers available is with credit cards. This is when you open a new credit card and transfer your existing balance from an old credit card. This can be done by contacting your new credit card company and asking them to transfer the balance for you. This is usually done to avoid it high interest charges on an old card.

Checking and Savings

Balance transfers can also be utilized with checking and savings accounts. If you want to move money from one checking account to the other, you will usually be able to do so with a balance transfer. Many times, you can get on your online banking account and transfer the money yourself. You can even transfer money from a checking account to a savings account in many cases.

Trading Accounts

You can also transfer balances between trading accounts in some cases. If you open another trading account, you can simply move the money that is left in your existing account to the new account.

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