What is a balance transfer?

It is as a credit card repays debts on other credit or store cards, so you now owe it the money instead, hopefully at a special low interest rate.
Balance Transfer Process
Example of a Balance Transfer

* Old cards: American Express Platinum Moneyback $ 3,000 at 20.49% and Commonwealth Bank Platinum $ 2,500 at 20.49%.
* New Map: HSBC credit card 0% p. a. On balance transfers for six months a year with 16.99% interest rate.
* The process: They apply to the ANZ card and in the application, you ask them to bring balance to American Express ($ 3,000) and Commonwealth Bank card ($ 2,500). (You can also transfer a single card, if you only have one.)
* Results: The American Express Bank and Commonwealth cards are now out, the guilt was transferred to these cards, the ANZ card set to zero. You now owe $ 5,500, but have not, interest is paid on it for six months, which means you are now 0% interest on this debt burden.

Tip It is best to transfer your balance within a few months after the opening of the new card account, otherwise they would have the opportunity to run. It is important that you not to be confused with the cutting of interest rates pay less each month, as intended by the minimum repayments.