Value of Credit Card Balance Transfers Drops at Major Internet Platform

The value of credit card balance transfers facilitated by a leading industry player has dropped as both the credit card and online lending markets face downward pressure.

Balance transfers involve transferring debt, usually credit card debt, to another credit account, often at a personal finance company. In China, these accounts are usually run through online platforms, and unlike in the U.S., they tend to charge higher interest rates than those offered on banks’ credit cards. Xue Hongyan, an internet finance expert at the Suning Institute of Finance, told Caixin that they usually offer interest rates of 30% to 36%.