Do you wake up in the dead of night drenched in sweat because you’re constantly worrying about those massive Credit Card dues weighing constantly on your mind? Well, what if we tell you there may be a way you can slowly but surely reduce your burden so you can finally get a good night’s sleep without soaking your pillow in bodily fluids?
Yup, that’s right. A Credit Card balance transfer could be exactly what you need to get you out of your rut. In a nutshell, a balance transfer allows you to transfer your outstanding Credit Card dues from your current Credit Card to another Credit Card at a lower rate of interest.
This means you get to pay off your outstanding Credit Card dues on one card by transferring that amount to another Credit Card with a lower interest rate. This makes it cheaper for you to pay back the outstanding amount.
Additional Reading: How To Use Balance Transfer To Cut Down Existing Credit Card Debt
What Are The Benefits Of A Credit Card Balance Transfer?
While a Credit Card balance transfer can be extremely convenient when you’re looking to reduce your debt burden, the main advantage it offers is to help you get out of the vicious cycle of debt that only grows worse over time because of compounding interest rates.
Here are some of the major benefits that a Credit Card balance transfer can give you:
- Save On Interest
By transferring your outstanding balance from your current Credit Card to a Credit Card with a lower rate of interest, you can save on the extra interest that you usually pay on your current Credit Card. This comes as a great boon to anyone looking to quickly reduce their Credit Card debt.
- Convenience
In comparison to other ways of reducing your outstanding Credit Card debt, a balance transfer offers more convenience and is relatively easy to carry out.
- Quick Processing
Since the processing of Credit Card balance transfers usually takes place very quickly, it can help you do away with your outstanding dues in a faster and easier fashion.
- Multiple Transfers
One of the biggest advantages of Credit Card balance transfers is you can transfer outstanding debts from multiple Credit Cards to your new Credit Card, thereby consolidating all your debt under one roof.
- Buffer Period
Banks usually allocate a buffer period to cardholders who have opted for a balance transfer. This buffer period allows them to clear their outstanding dues either at zero interest rates or extremely low and affordable rates of interest.
Additional Reading: Balance Of Transfer On Cards – Make The Most Of It!
Things To Keep In Mind When Opting For A Credit Card Balance Transfer
While opting for a Credit Card balance transfer is certainly a great way to reduce your debt burden, there are a few things you need to keep in mind before following through with it.
- Always keep in mind that banks usually offer balance transfers only if the balance you’re transferring is for a Credit Card that they haven’t issued.
- There are factors that determine the maximum as well as minimum amount of outstanding balance that can be transferred.
- Make sure you check with the bank before opting for a Credit Card balance transfer since interest rates as well as other terms are subject to change every now and then.
Additional Reading: 5 Questions To Ask Before Doing A Balance Transfer On Your Card
Top 6 Balance Transfer Credit Cards In India
Now that you know all about Credit Card balance transfers, it’s time to take your pick among these top balance transfer Credit Cards currently doing the rounds in the Indian market.
- You can transfer the outstanding balance from any Credit Card you hold to an ICICI Credit Card.
- You can make repayments towards the balance transfer in instalment periods that range from 3 months to 6 months.
- You will be charged interest on the amount that you transfer. This interest amount will have to be paid at the time the balance transfer takes place.
- If you clear the entire balance amount and interest, ICICI also gives you the options to foreclose your payments.
- Initiate Credit Card balance transfer via netbanking, SMS or through customer care.
- Repayments towards the balance transfer can be made in instalment periods of 2 months or 6 months
- If the repayment period of 6 months is chosen, then an interest charge of 1.7% per month will be applicable.
- Avail of Credit Card balance transfers for tenures ranging from 3 months to 24 months
- Interest rates charged by the bank depend on the tenure chosen.
- Processing fees may be levied.
- You also have the option to foreclose on your balance transfer payments at no extra cost.
- You can make a minimum Credit Card balance transfer of Rs. 2,500.
- There is no maximum amount you can transfer, provided you don’t exceed 75% of the limit on your Credit Card.
- Depending on the amount you transfer, a processing fee will be charged.
- You can initiate the Credit Card balance transfer via netbanking, SMS or through customer care.
- You can make a minimum Credit Card balance transfer of Rs. 5,000.
- Repayments towards the balance transfer can be made in instalment periods of 3 months or 6 months.
- The tenure of 3 months does not attract any interest charges, but interest will be charged on the 6 month tenure if chosen.
Standard Chartered Bank Credit Card
- You can make a Credit Card balance transfer up to Rs. 5 lakhs to a Standard Chartered Credit Card.
- For the first 6 months you will be charged interest at 0.99% per month.
- Once the 6 months period has lapsed, the interest rate applicable will be in accordance with the Credit Card.
- You can also make a minimum payment of 5% every month of the amount transferred, which can be done by intimating the bank via SMS that you’re opting for a balance transfer.
While the best way to avoid Credit Card debt is to use your Credit Card wisely and keep your spending in check, a Credit Card balance transfer could certainly offer you an affordable escape route should you find yourself completely swamped by outstanding Credit Card dues.