Credit Term
BT
Balance Transfer
Moving what you owe on one credit card to another card or plan that charges a much lower — sometimes 0% — promotional interest rate for a set period, so more of each payment clears the actual debt.
A balance transfer shifts an existing card balance onto a facility with a low promotional rate, typically lasting 6 to 36 months. During that window, little or no interest is charged, so paying the same amount each month clears the principal far faster than leaving it on a high-interest card. Some transfers carry a small one-off fee, so the saving needs to outweigh it.
The strategy only works if you have a plan: aim to clear the balance before the promotional rate ends, because the rate usually jumps afterwards, and avoid running the old card back up. A balance transfer is a tool to escape expensive card interest, not a way to borrow more. Compare the promo length, the fee, and the rate after the promotion before choosing one.
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This definition is drafted against primary sources (Bank Negara Malaysia, AKPK and the relevant Acts) and is pending editorial fact-check. If you find an error, tell us and we will correct it with a dated note.