Manage debt – Opt for credit card balance transfer!

By Nirjharini | April 23, 2014
Credit card management

Credit Card Options

Subhash has been working in the IT industry for some time and has managed to earn well in the first few years. So, he decided to buy 2-3 credit cards at once. He knew credit card balance transfer was a great option that he could choose if he ran out of limit in any one of his cards. The idea of balance transfer on credit cards not only helped him in shopping relentlessly, but also helped in debt control. Credit card debts get accumulated in no time and the high interest rate does the damage as far as the savings of the card holder are concerned. Even though the option of balance transfer doesn’t really offer a long term solution to the problem, it usually helps in avoiding any kind of emergency situation that might arise in the future.

Reputed institutions like Corporation Bank and SBI have also stated that the method of balance transfer is convenient and offers a lot of protection in terms of debt control. Balance transfer is all about transferring the outstanding balance from a particular credit card to a different one which offers superior terms and a lower rate of interest. A nominal amount of processing fee is charged by the banks when they transfer your balance to some other bank’s credit card. You can even transfer your card’s balance to a card offered by the similar bank. Having at least 2 or 3 credit cards is a fundamental requirement for availing this service. It is important for you to go through the interest rate and processing fee being charged by the new bank before you choose a balance transfer alternative.

Special features offered by the top 5 banks in India offering credit card balance transfer facility are discussed below.

Bank Special Features
HSBC Convenient loan tenure of 6, 12, 18 and 24 months and low rate of interest
Standard Chartered Transfer limit up to Rs 5,00,000 and no documentation required
Citibank Low interest rates and no paperwork required
Kotak Mahindra No interest charged on fresh purchases and low processing fee
Punjab National Bank Low processing fee and lucrative interest rates

As on 9th April, 2014

Reducing the Burden

The burden of managing several cards at a time can be extremely painful. There are some people who don’t even remember how much balance they have left in their respective credit cards. These things can sometimes lead to certain embarrassing situations. Moreover, the interest rates charged by different banks vary and you end up paying a lot of additional money annually. With credit card balance transfer option, you’re able to keep your card usage to a single credit card and thereby you can save a lot on the interest being charged by various banks.

Special Introductory Offers

Special introductory offers and promotional discounts can be easily availed by choosing the option of balance transfer. Due to the increase competition in the credit card industry, most banks are coming up with different schemes to allure customers. Some of the institutions even offer special offers to customers who transfer their balance to one of their credit cards.  You could get a chance to shop in an interest free period if your bank permits.

Improved Credit Score

There is hardly anything which is as important as your credit history and score. People do everything to improve their credit score but what they don’t know is that by managing debt in a suitable way, credit score can be easily increased. It is important to utilise the credit limit being offered to you in a suitable way so that you are left with more accessible credit at the end of the month. Credit card balance transfer allows you to stay within the credit limit and therefore your credit score goes up significantly.

Balance Clearance

The process of balance clearance is to be initiated by the card holder himself. He needs to clear the outstanding debt by offering a demand draft in the name of the bank. The whole procedure consumes about 7 to 10 days and once you’ve paid the processing fee, your balance will be transferred in a few days. However, you should remember that there is a limit to the amount of money which you can transfer. Every bank has set a different limit and you must contact your bank for more information on the transfer limit.

Making Money through Balance Transfer

Most people get shocked when they are told that they can make money through the option of balance transfer. Yes, it’s true! A lot of banks offer special bonuses to customers who are willing to transfer their balance to some other credit card. So, the next time you plan to transfer your card’s balance, don’t forget to ask your bank regarding the rewards they could offer you.

Not everyone is a credit expert, but with a consistent research anyone can make the right decision regarding credit card balance transfer. Know about the best card transfer deals at https://www.bankbazaar.com/credit-card.html.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

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