A lot number of people have been looking for ways to reduce their credit card woes. And, some are even not aware of one of the best options - Balance Transfer. But, before you go all happy about getting to know how your credit card problems can be minimized let us understand what the particular method is all about. Balance transfer, in the simplest terms, means that a person can transfer the amount s\/he owes on one card to another. By doing this the cardholder ends up paying for the first card and owe that amount on the other credit card. One main reason why someone might go in for a balance transfer could be that the other card offers lower interest rates which would mean it would be cheaper to pay it back through the other card, according to a report by Bank Bazaar. Advantages of balance transfer:- 1- It is one of the most important benefits of the balance transfer. The cardholder gets an additional three to four months during which the person can pay the outstanding balance without paying any interest. 2- The interest rate charged by the new bank on the balance transferred would be much lower than the current credit card. 3- For balance transfer, many banks even allow the customer to transfer his\/her outstanding amounts that have been converted to equated monthly instalments (EMI) or even convert the outstanding into low-interest EMI. Important points to watch out for while using credit card balance transfer:- 1- Availing credit card balance transfer reduces your credit limit in the same proportion. For example, if your have a credit card limit of Rs.75,000 and you have transferred a balance of Rs.50,000 then the effective credit limit available to you for all other credit card transactions is just Rs.25,000. 2- The best way to use credit card balance transfer is to pay off all your dues within the free or nominal interest rate period. After this, standard credit card interest rates apply which require higher payments to be made. 3- The lower interest rate for credit card balance is not applicable to new purchases that you make on your credit card. These transactions fall under standard interest rates offered by the credit card issuer. 4- Balance transfer is generally offered to customers who have been a credit card user for one particular company for at least a year. This is to ensure that credit holders do not keep hopping from one credit issuer to another in order to avail lower rates of interest. How to transfer balance from one credit card to another? The most important point that people need to note about credit card balance transfer is that they can transfer only the amount to the new credit card which is within the credit limit. So, if the second credit card limit is Rs 50,000 and the person's pending due from the first card is Rs 75,000, then only Rs 50,000 can be transferred.