Balance transfer is a facility offered by the credit card providers wherein a credit card holder can transfer a part of or total outstanding dues on one credit card to another. The credit card provider to whom you are transferring your balance will pay your outstanding amount to the first credit card provider and take the credit on itself. For example, you have a credit card A on which you have to pay, say, $5,000. Now, you transfer a balance of $2,000 to credit card B. Company B will pay $2,000 to company A. Thereafter, you will have to pay $3,000 to company A and $2,000 to company B.

There can be different purposes for transferring your credit balance:

1. Preventing you credit from exceeding the credit limit
2. Distributing you credit among multiple credit cards
3. Saving interest fee on credit by doing interest free balance transfers

Here are the steps you need to follow for credit card balance transfer:

1. File an application with the credit card provider to whom you want to transfer the balance
2. Fill out the balance transfer form providing details of the credit card from which you want the balance to be transferred
3. You application will be processed in few days. The turn around time varies with each credit card provider
4. You will receive a payment to be made to the first credit card and according that amount will included as credit in your second credit card

Points to be noted while doing credit card balance transfer:

1. If you are looking for an interest free balance transfer, confirm the interest free period. Credit card providers offer interest free period varying from 3 to 12 months or cheaper interest rates to attract customers. Thereafter, you are charged the normal interest rate
2. Take care of the credit limit of the credit card
3. Take note of the processing time required in balance transfer as the payment due date of the first credit card may fall within that period.

By taking care of these simple fundamentals, you can use the facility of balance credit card balance transfer for your convenience and saving some dollars.