Balance Transfer From Credit Cards

About Credit Card Balance Transfer

Are you looking for ways to save on credit card usage? Why not opt for a credit card balance transfer facility! The credit card balance transfer facility allows you to transfer your existing credit card balance to another credit card (usually a new one) and pay off your dues at lower interest rates. Thus, you will be able to reduce financial strain and use the saved-up money in other areas required. Read the following section to know the benefits of balance transfer from credit card.

Credit Cards that Offer Balance Transfer Facility

Key Benefits of Balance Transfer from Credit Card

Some of the key benefits of credit card balance transfer are listed below:

• It is easy to apply for a balance transfer on a credit card and the processing time is quick.

• You can save on compounding interest charges that get accumulated on your outstanding credit card bill.

• The lower interest rate helps to reduce the EMI amount thus enabling you to repay timely and improve your credit score.

• You can transfer outstanding balances from one or more cards through credit card balance transfer.

• In most cases, a grace period is offered to clear bills at a nominal or 0% interest rate, which allows you to save more.

How to Apply for Credit Card Balance Transfer

Try any of the methods mentioned below to apply for a credit card to credit card transfer:

1. Submit a request on the official website of a bank or financial institution.

2. Visit the nearest bank branch and request a credit card balance transfer.

3. Call on the credit card customer care number and request the executive to guide you on the credit card balance transfer process from one bank account to another.

You can avail the NEFT facility for online money transfers against a credit card. For this, you will have to provide the details of the credit card-issuing bank, the recipient bank, and other details such as the name of the bank, the cardholder’s name, and the credit card number of the other bank against which the transfer will be done.

Alternatively, you can transfer credit card balance to bank account using a Demand Draft which must be issued under the name of the bank.

How Does Credit Card Balance Transfer Work

If the interest charges on your existing credit card have compounded to a point that you are finding it difficult to repay, you may opt for a credit card balance transfer. When you do so, a special credit card balance transfer loan with a fixed and economical interest rate is issued against your card.

This loan money is then transferred from the new credit card to the bank account of the existing card and the dues are cleared in full. You can then pay back the borrowed amount in easy instalments. As a result, your penalty charges are obliterated and instead of paying up in one go, you can make low-cost payments every month.

Who Can Apply for a Credit Card Balance Transfer?

If you are a cardholder who has a significant amount of outstanding debt at a high-interest rate, it is usually suitable for you to apply for a credit card balance transfer. However, it must be noted that you must be able to pay off the amount due within a few months.

Who Can Apply for Credit Card Outstanding Balance Transfer

The bank approves the request of a credit card balance transfer facility based on its internal policies. While the selection is at the discretion of the bank, there are some things you can do to improve your chances of getting approved for credit card to credit card transfer. These include having a good track record when it comes to monthly credit card spending, the pattern of transactions, as well as repayment history.

To increase your eligibility for credit card balance transfer, follow the ways mentioned below:

• Make sure you have a decent credit score

• Avoid late payments and defaulting on loans

• Maintain a healthy relationship with your bank

If you get approval from the bank the credit card amount transfer benefits can be realised quickly.

How Do I Transfer My Credit Card Balance To Another Card

A credit card money transfer can be done quickly in the following manner:

• Check the outstanding due, interest rate, and penalty charges you are paying on a credit card.

• Search for a new credit card that is offering you funds at a lower rate of interest.

• Check if the credit limit on the new card is enough to clear the outstanding debt on your current card.

• Consider all balance transfer fees and calculate the final cost you are likely to incur.

• Submit your credit card application and request the bank to transfer the balance and pay off your debt.

If approved, your credit card dues will be cleared.

Credit Card Balance from One Card to Another Bank’s Credit Card

You should consider transferring your existing bank’s credit card balance to another bank’s credit card in case you are getting low-interest balance transfer credit card options for the same. The option is highly recommended in the scenario where you have accumulated considerable credit card debt with your existing bank and are unable to manage the funds to make full repayment on time. However, if you find a bank that is offering a credit card balance transfer facility at a low-interest rate, you should consider shifting to that new lender to lessen the burden of your credit card debt.

Fees & Charges on Balance Transfer from Credit Card

A credit card to credit card balance transfer attracts certain fees and charges. Some of these credit card balance transfer charges are listed below:

• Processing Fee: To transfer the outstanding credit card amount to a new account, you will most likely have to pay a nominal processing fee ranging between 1% and 3%.

• Interest Rate: Some banks levy 0% interest charges for the initial period. Past this grace period, standard interest charges are applied that vary from bank to bank.

Impact of Missing Credit Card Payments

A missed credit card payment can, unfortunately, come with heavy penalties. The impact of missing credit card payments depends on how late that payment is and the terms of your credit card. You can mainly incur damage to your credit score which is very hard to rebuild once it is affected. You can easily fall into a vicious cycle of debt that can make life miserable. In such a situation, a credit card balance transfer can be the way out for you to ease the debt and make payments over a period of time.