Our Products
Loans
Cards
Insurance
Investment
Stock Market
Electronics Mall
CIBIL Score
Knowledge Centre
Calculators
Our Services
My Account
Do not call
En
Read more about the process and benefits of credit card balance transfers to manage high-interest debts at lower rates.
A credit card balance transfer is a refinancing facility offered by many banks and financial institutions to help you consolidate debt. A balance transfer can also help you plan and manage your finances better. Keep reading to know more about credit card balance transfers and how they can help you.
When you opt for a credit card balance transfer to another credit card, your outstanding dues are transferred to your new credit card account. This way, you can have all your credit card balances on one account for better tracking and management.
Additionally, credit card issuers usually offer lower promotional interest rates and better terms like extended repayment tenor. Choosing the best credit cards for balance transfers with good credit can be a prudent financial decision, allowing you to pay down principal debt faster.
Most leading credit card issuers offer credit card balance transfer facilities. Here is a non-exhaustive list of some credit card balance transfer offers to help you make an informed decision:
SBI Card allows you to seamlessly transfer your credit card balances from other bank’s credit cards to your SBI Card account. By doing so, you can consolidate outstanding dues and enjoy lowered interest rates.
SBI Card also lets you choose a plan that works best for you–0% interest for 60 days or 1.7% per month for 180 days. You can initiate a credit card balance transfer by sending an SMS or calling SBI Card’s customer care number.
The bank offers an interest-free period of 90 days on credit card balance transfers. In case you complete your balance transfer repayment within these 90 days, no interest will be charged on fresh purchases.
Here are some key benefits of using transfer credit card balance to new card:
Moving debt to low Annual Percentage Rate (APR) balance transfer credit cards can significantly reduce costs, ensuring that a larger portion of your payment goes toward lowering the actual outstanding debt.
Managing one due date instead of multiple varying deadlines reduces the risk of missed payments and simplifies your monthly budget.
With lower interest rates, your repayment cycle shortens, helping you become debt-free much faster.
If you carry balances on multiple cards, consolidating them onto a single card simplifies your financial management. This reduces the complexity of tracking various interest rates and multiple due dates.
Weighing the advantages and drawbacks of credit card balance transfer helps you decide if it aligns with your debt repayment goals:
| Pros | Cons |
|---|---|
Saves money by moving debt to low or 0% interest cards |
Typically involves a processing fee of 1%–3% |
Simplifies repayment by consolidating multiple balances |
May lead to overspending on the new available limit |
Can improve credit scores through consistent, on-time payments |
High credit score requirements may limit eligibility |
Offers a short-term interest-free period for financial relief |
Missing payments can cancel promotional interest rates |
Now that you know the basics of what are balance transfers on credit cards, here is a look at the common charges to avoid hidden expenses:
Balance Transfer Fee: Most issuers charge an upfront fee for the service, typically ranging from 1% to 3% of or on the transferred amount. This should be factored into your total savings calculation to judge the efficiency of a balance transfer process.
Annual Fees: Depending on the card variant, an annual fee may apply. While some of the best credit cards for balance transfers waive this for the first year, it is a recurring cost to consider.
Late Payment Penalties: Timely payments are critical. Missing a deadline can trigger late fees and may prematurely terminate your promotional 0% or low-interest period.
Post-Promotional Interest: Once the introductory window expires, the balance will attract the standard interest rate of the credit card. It is advisable to clear the transferred amount before this period ends.
The table below shows the interest rates and processing fees for leading issuers for some of the best credit cards for balance transfers:
| Lender | Interest Rate on Balance Transfer | Processing/Transfer Fees |
|---|---|---|
SBI Card |
0% for 60 days or 20.4% p.a. for 180 days |
2% or ₹199 (0% plan); Nil (180-day plan) |
HDFC Bank |
Shared at the time of application |
1% of balance transfer amount (Minimum ₹250) |
Axis Bank |
Starts from 12% p.a. |
1.5% of balance transfer amount (Minimum ₹250) |
ICICI Bank |
Shared at the time of application |
Shared at the time of application |
Kotak Bank |
0% interest option available |
₹349 per ₹10,000 of balance transfer amount |
RBL Bank |
Starts from 11.73% p.a. |
2.99% (Minimum ₹750) or ₹499, depending on plan |
To apply for a credit card balance transfer, you can simply initiate a transfer via net banking, SMS, or by calling customer care. If you are applying for a new card specifically for this purpose, you must meet the lenders’ eligibility criteria and provide proof of identity, address, and income.
There are a few different ways to transfer your credit card balance from one credit card account to another. Here are a few of these methods and how to transfer credit card balance:
Login to your credit card issuer’s net banking website and go on the ‘Credit Cards’ section. If you are eligible for a credit card balance transfer, you can place a request for the same on the website itself.
Go on your credit card issuer’s mobile application and login to your account. Navigate to the ‘Credit Cards’ section and see if you are eligible for a credit card balance transfer. If you are eligible, then enter all the required information and get started with the credit card balance transfer.
You can get started with your credit card balance transfer by calling your credit card issuer’s customer service team. They will inform you if you are eligible for the transfer and in case you are, they will guide you through the process.
Many credit card companies allow you to initiate a credit card balance transfer by sending an SMS or giving a missed call on a specified number.
Eligibility for credit card balance transfers are determined based on a number of factors like the bank’s internal policies, your relationship with the bank, etc. Therefore, the eligibility criteria for balance transfers can vary from one credit card provider to another. Here are a few things that can enhance your chances of being eligible for a credit card balance transfer:
Make sure you have good credit history and score
Avoid defaulting on loans and/or make late payments
Maintain a cordial relationship with your credit card issuer
Having a good credit profile and history will make a good candidate for credit card balance transfers. This will also help you access better terms like lowered interest rates, processing fees, and quicker processing timelines.
When opting for a balance transfer, it is crucial that you understand your repayment liabilities. This will help ensure that you’re not caught off guard by repayments. Take account of your finances and understand how much you can afford to set aside for repayments.
In this context, it is advisable to complete the repayment within the promotional period. Otherwise, a higher interest rate may apply to the remaining balance.
There are a number of different credit card balance transfer offers provided by credit card issuers. Though these offers are quite similar, it is important that you compare across and get in touch with multiple credit card companies before settling on a provider.
This will help you understand existing rates as well as compare and contrast to make an informed decision.
Before transferring your outstanding credit card balance, make sure you read the terms and conditions thoroughly. Understand the interest rates involved, processing fees, repayment timeline, etc.
The information provided by BFDL herein above is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be a source of advice or recommending any financial advice or endorsement of any sort. The information including interest rates or fees and charges with regard to any credit card, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.
No, it is unlikely that a credit card balance transfer will affect your credit score negatively. In fact, a balance transfer can potentially improve your credit score, while also reducing your repayment burden. But, remember that constantly opening a new credit card account can cause your credit score to fall.
Credit card balance transfers typically take between 5 days and 7 days. However, in some cases, it can take up to 21 days. It’s best that you get in touch with your credit card provider to understand the exact timeline of a credit card balance transfer process.
Yes, it is possible to convert your outstanding credit card balance into EMIs. However, it is unlikely that you will be able to transfer your credit card debt to another card from the same issuer.
In most cases, you will only be able to make a balance transfer to the tune of your new credit limit.
A balance transfer is a preferable option if you have a good amount of revolving credit card debt and the rate of interest is quite high. The high interest rate can drive up your repayment liability by quite a bit and make it difficult for you to repay your debt. In such cases, it’s best to switch to a credit card provider that offers lowered promotional interest rates.
While there is no limit on the number of times you can transfer your credit card debt, it is best to avoid multiple balance transfers. This is because getting new credit cards within a short span of time can hurt your credit score quite a bit.
When making a credit card balance transfer, make sure to:
Do a cost-benefit analysis between the existing and the new repayment plan.
Understand the new interest rate and processing fees.
Make the repayment within the promotional interest period.
A credit card balance transfer facility is a refinancing option that can significantly reduce your repayment burden. However, it should be used carefully and only if you are confident about making timely repayments.
Yes, a credit card balance transfer can be quite beneficial in helping you reduce interest accrual on credit card debt. This, of course, can drive down your total credit card debt by a significant amount.
Generally, personal loans come at a higher rate of interest than credit card balance transfers. Therefore, generally, it's an optimal choice to opt for a credit card balance transfer instead of a personal loan.
The fees and charges associated with balance transfers vary from one credit card issuer to another. Processing fees and refinancing fees are some of the most common types of fees levied on credit card balance transfers.
You can use a number of online and offline payment methods to make your credit card balance transfer due repayments. This can include Unified Payments Interface (UPI), National Electronic Funds Transfer (NEFT), Real Time Gross Settlement (RTGS), Automated Clearing House (ACH), etc.
You can check the status of your credit card balance transfer application by logging in to your credit card issuer’s app or website. Alternatively, you can also call their customer service team to understand your application status.
To avoid the balance transfer fees, select cards with no-fee promotions or negotiate with your issuer. Alternatively, choose cards where interest savings significantly outweigh the upfront cost.
Alternative to credit card balance transfer includes securing a low-interest personal loan, converting your current outstanding dues into affordable monthly EMIs, or negotiating a structured repayment plan directly with your bank.
A balance transfer can be a better option than continuing to repay high-interest credit card dues, as it allows you to move outstanding balances to a card with a lower APR, reducing overall interest costs. But it should be opted for only if you are confident of making timely repayments within the promotional period, as delays can lead to higher charges later.
If you have not received an update after successfully applying for a balance transfer, immediately contact the customer care department of the bank where you have applied to verify your application status and ensure that there are no technical delays.
Academy 
