Credit card balance transfer facility helps cardholders to save on interest payments and manage their dues favourably. The tool is often used by people with multiple credit cards.
Credit card balance transfer allows a person to shift their outstanding balances from one credit card to another with a lower interest rate. This facility is often used by those with multiple credit cards. The facility helps cardholders to save on interest payments and manage their dues according to their best interests. If a person is unable to clear the total credit card bill amount within the due date, they can use the balance transfer tool from another credit card. An individual may be able to avail this facility only if they hold at least two credit cards and their card issuer offers the service.
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How to check if your lender offers credit card balance transfer
You can check if the facility is available by visiting either the card issuer’s website or by calling their customer care service. You must have all the required documents, including your amount of debt and account information, ready to ensure that you are providing your card issuer with the correct information.
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How to do credit card balance transfer?
Step 1: Visit the card issuer’s website or nearest branch.
Step 2: Evaluate which balance you need to transfer. People typically transfer dues from a high interest credit card to a lower interest one.
Step 3: Check the balance transfer fee that will be applied by the lender, the duration of the promotional period, and the standard interest rate that will be charged after the promotional period comes to an end. You also need to check for any hidden charges that could be levied on the credit card balance transfer.
Step 4: Make a note of the credit limit on your card before you initiate a transfer. The balance transfer cannot exceed the credit line available to a customer, and balance-transfer fee counts toward the limit.
Step 5: Pay the fee and complete all the required formalities to initiate the request.
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Things to keep in mind before a credit card balance transfer
You need to evaluate all the conditions offered by the card issuer before opting for a credit card transfer, including your ability to repay your dues. While credit card balance transfer is a good way to manage debt, it needs to be kept in mind that the option needs to be taken in conjunction with a solid debt repayment plan.
Merely opting for a credit card balance transfer isn’t enough. You should chart out a detailed financial plan to take care of your expenses and ensure you do not fall into a debt cycle.
