What is the process of moving an outstanding balance from one credit card to another called?

A balance transfer is the process of moving an outstanding debt from one credit card or lender to another. Cardholders often use this feature to seek a lower interest rate or consolidate payments.

A balance-transfer offer may provide a temporary promotional rate, but it commonly includes a transfer fee and an expiration date. After the promotional period, the remaining balance can accrue interest at the agreement’s regular rate. New purchases may follow different interest rules from the transferred amount.

A balance transfer does not erase debt or increase the borrower’s income. The old account may remain open unless the customer closes it, and the new card’s credit limit determines how much can be moved. Terms vary substantially by issuer and credit profile.