Wondering how to pay off your credit bill? Worry no more!
An effective way of handling credit card debt is to transfer balances from high-interest cards to low-interest cards. This helps you pay off excess balance quickly, thus avoiding additional accumulating interest rates.
Credit Card Balance Transfer is a method of paying off your debt by simply transferring the balance amount to your credit card through a second credit card. IN simple terms, you transfer the amount you owe to one card from the second card and in this way, you are only liable to pay the interest applicable on the second credit card.
Reasons to opt for Credit Card Balance Transfer:
- Lower interest rates
- Paid in the form of demand draft by the second credit card
- 0% APR or a very nominal rate of interest
- Interest charged is lesser than the interest charged on pending credit bills
- Adequate time is given to avoid high-interest rates
If your intention is to be debt free, you may follow the given guidelines to assist you in making your transfer balance efficiently.
- Check your credit score- This determines the loans you may qualify for and the interest rates you will pay. Many balance transfer deals are available to those only with good credit score. However, if you have a sub-par credit score, you may consider opting for low ongoing APR.
- Do your research- Compare balance transfer offers and choose what fits your financial ability and requirement.
- A fee of 3% comes along with the transferring of balance, keep this in mind while deciding with offer is best for you.
- Look for a low balance transfer fee and the longest 0% APR offer.
- The interest-free period will last for between 6 to 15 months, after which you will be liable to pay a certain amount of interest on the remaining balance amount.
- Be diligent in paying your interest amount, failure in doing so can lead to cancellation of the deal. Thus, you will have to start paying interest immediately. Read the terms and conditions carefully.
- Contact the company you wish to avail this facility from- Once you have decided which offer is suitable for you, you may apply online on the company website or place a call to the card’s customer service center. Information required by the card company to carry further your transfer request will include:
- Outstanding credit amount
- Credit card number
- Credit card expiration date
- Credit limit
- Address proof
- Exact transfer amount
- Apply for a card especially for balance transfer and transfer your balance- Choose a card with the longest 0% APR offer and low transfer fee rates. Once your application is approved, provide them with the information you gathered, and your work is almost done here. The company will then get in touch with your old credit card providers and transfer the balance amount specified.
- Make your debt repayment plan- Pay your balance quickly to avoid high-interest rates and future debts. The best way is to create a budget and manage your expenses accordingly. Devise a plan to wave off most of the principle amount during the 0% debt period. Hence, cut unnecessary expenses to free up extra money. Once your debts are transferred to your new credit card you must follow your debt repayment plan to avoid any huge debts in the future.
Remember, a balance transfer can make debts easier, but you must do the work.
Below is a list of few banks that offer balance transfer facility:
- ICICI Bank
- State Bank of India
- Kotak Mahindra
- Axis Bank
- Standard Chartered Bank
Key points card balance to remember when opting for Credit transfer:
The best way to use credit card balance transfer is to finish off your dues with 0% interest rate period. In this way, you have made proper use of this facility to your benefit.
Balance transfers are issued to customers who have been a credit card holder of a company for at least a year.
Fee is charged as a certain percentage on the overall transfer amount.
A good credit score is elementary in getting a balance transfer approved. If you have a bad credit score, then you may be denied the facility.
Typically, you can’t make balance transfers between cards issued by the same bank or card issue.
To conclude, Credit card balance transfers are a great way to clear off debts with minimal interest rates. With the suitable offers and right choices, you can be worry-free and waive off your debt easily.