Differences Between Money Transfers and Balance Transfers
Money transfers and balance transfers might sound similar, but are in fact very different, and have a unique blend of benefits associated with them. If you’re curious about the processes involved in Money transfers and balance transfers and which one might be most suitable for your needs, keep reading this guide and discover what makes each type of transfer unique.
Balance Transfers
A balance transfer is the process of moving debt from one credit card to another. Typically, a balance transfer would see you move debt to a credit card with a lower interest rate, so you could save money on monthly repayments, and not have to worry about accumulating excess debt through high interest rates.
When you make a balance transfer, a fee will typically be applied, with this usually being a percentage of the amount transferred. While this can seem off-putting at first, fees are often offset by the money saved in repayments, so don’t let this put you off completing a balance transfer.
Money Transfers
A money transfer is the process of moving money from your credit card directly into your bank account. This is done for a variety of reasons, from clearing an overdraft to funding a new business venture. When you transfer money from a credit card to your bank account there will usually be a fee attached. This will most likely be a percentage of the amount transferred.
When completing your money transfer it is good to let your credit card company know the amount you will be transferring and try to only transfer exactly what you need. When contacting your credit card provider, make sure to ask about the fee you will be charged and the interest rate on top, this will ensure that you are not bound to any hefty and unwanted repayments.
Money transfer vs balance transfer
Now you know the difference between a money transfer and a balance transfer you can work out which one suits you more. Looking to clear an overdraft or fund a new project? Make a money transfer and give your bank account the boost it needs. Looking to save money on monthly interest repayments? Make a balance transfer and see the benefits a lower interest rate has on your debt repayments.
As money transfers and balance transfers only work on your accounts, we know they might not be useful for every situation. If you need to financially assist a loved one, then Western Union is here to help. Log in or register for free today to get started making international money transfers to the ones you love. Whether it’s a birthday surprise or help with bills, Western Union is committed to helping your money get to where it needs to be.
