A balance transfer occurs when you apply for a new credit card to take on the balance of the debt on an existing credit card and subsequently can close that existing credit card.
For example, if you have a credit card with Bank A that has a $1,000 limit and $400 debt owing, you can apply for a balance transfer credit card with Bank B and have the debt transferred.
Why is this beneficial? Beyond Bank offers 0% on balance transfers for 12 months. This means if you transfer a debt from another financial institution to us, you won’t pay any interest on that debt for 12 months, which can really help to reduce the amount of debt that you owe.