Credit card balance transfer – settle unpaid  credit  bills at 0% interest

A credit card is, of course, an effective financial tool to handle your emergency needs when you lack funds. Aimed the effects of COVID-19, the world has digitalized 80% of transactions, and credit cards have gained higher prominence than ever. Having more than one credit card is common in one’s portfolio as it helps to manage finances effectively. People who fail to master managing multiple credit cards end up accumulating substantial unpaid bills, which eventually drags them into more interest payments. Credit card balance transfer would be your financial saviour at this juncture, and here is how it helps you to get out of debt.

Credit card balance transfer 

When you have substantial outstanding debts on credit card payments and are unable to afford repayment with your current income, a credit card amount transfer could be the right choice. Many top balance transfer cards help you transfer your outstanding balance to the new card. The new lender will take the responsibility of repaying the whole debt to the old bank on your behalf. The balance transfer gives you the needed financial breathing space, allowing you to comfortably repay the debt to the new lender over the given interest-free period or slashed interest rates. 

Transferring the outstanding credit card balance to another card to settle it at ease is called credit card balance transfer. One using the option to settle the unpaid credit card bills can take advantage of a 0% interest rate or lower interest, which in turn saves interest on outstanding credit card bills. 

Process of Credit Card Balance Transfer 

Eligibility:

You will be eligible for a move credit card balance option when you have a good credit score. The new lender may also peek into your current credit card spending habits to decide your eligibility. The approval for credit card balance transfer stands at the absolute discretion of the new lender. 

Transferring of funds 

After your application for balance transfer is approved, the funds are transferred to your old bank credit card through NEFT or demand draft. For this, your new bank may ask for the details regarding your name as per bank records and your credit card details to close the transaction with the bank.

Features of credit card balance transfer 

Combat financial strain :

Financial strain can be quite stressful in life. When you have unmanageable outstanding balances on your credit cards, top balance transfer cards could be a significant option. There is intense competition among the credit card providers in the market, and they are offering balance transfer services at low charges. And some even go to the extent of providing 0% interest charges to capture significant market share. Lower interest rates on the credit card mean lower financial burden. 

Improve credit score 

When you have credit cards bills with lower interest rates, it will be easy for you to make repayments on time. Timely repayments will improve your credit score and stabilize it over time. learn to use credit card wisely to improve credit score

0% interest period balance transfer

When you choose credit card amount transfer to settle outstanding bills on the existing credit cards, you can take advantage of a 0% interest-free period on new purchases post-balance transfer. Any new purchase made with the credit card will not have any interest charged on it. 

More introductory benefits 

Banks offer many other introductory benefits to the customer, helping you to settle outstanding bills with ease. A few introductory benefits offered by the banks include interest-free periods, low-interest rates, and more. 

Points to consider while choosing balance transfer credit cards 

Use the balance transfer  to settle only the outstanding balance 

Check if the credit card you are using for balance transfer offers 0% APR on the due amount for the specific period; these cards are not going to provide any interest-free period for the new purchases made on the card. If your preference is to enjoy 0% APR on the balance transfer card, use the card strictly to repay the outstanding balance.

Pick the introductory offers wisely

If you are given the option to enjoy low APR on credit card balance transfer as the introductory offer, make sure you check the APR of the card after the offer period before picking one.

Check for processing fees before choosing a card

Another type of balance transfer credit card you come across is an interest-free credit card for a few months. If you are picking such cards, you should be watchful about the high processing fee on the loan.

Know about minimum/ maximum balance transfer amount 

Apart from that, the banks have a restriction on the minimum and maximum amount to move credit card balance. Before you take a final call on the card you pick to lower your credit card debt, check for a cap on the minimum and maximum amount that can be transferred through the card.

Compare multiple balance credit cards to pick the best offer 

Take advantage of the comparison sites that bring the features of multiple credit cards in a single window and make it easy to compare and pick the right one.

 Top balance transfer cards

Bank
Interest RateProcessing FeesDurationApply
HDFC


 
Shared at the time of application1% of BT amount/Min. Rs. 250 9 to 48 monthsHDFC
ICICI Bank
Shared at the time of applicationShared at the time of application3 & 6 month installments
 
ICICI
Axis


 
3 months is interest free and 6 months has interest charges1.5% of BT amount/Min. Rs. 250 3 to 6 monthsAxis
Kotak Bank


0% interest option available
Rest shared at the time of application
Rs. 349 per Rs. 10,000 BT amount3 to 6 monthsKotak Bank
SBI

0% interest option available for first 60 days
Starts from 9% p.a.
Nil processing for certain plans
Rest shared at application time
3 to 6 monthsSBI

Should I choose a balance transfer credit card?

You can apply for a credit card balance transfer at your preferred bank when you have an unmanaged outstanding credit card balance. The balance transfer credit card may help you settle the debt without any hefty interest charges. While choosing a credit card amount transfer to pay the debt, make sure you settle in a few months to enjoy a free period.

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