If you use credit card and are facing difficulty paying your higher-interest debt on time, a balance transfer credit card can help you manage your debt smartly. A balance transfer card not only offers you an effective way to repay outstanding dues at a lower interest rate or through an easy EMI. If this sounds satisfactory to you and you want to know more, stay with us.
In the following article, we will discuss what a balance transfer card is and how it works. Also, we will discuss some of the best balance transfer cards and how you can use them smartly to manage your debt.
What is a Balance Transfer Card?
A balance transfer credit card allows users to move their existing debt from one card to another credit card that offers several benefits, like: –
- Offer you a lower Interest rate.
- Offer low interest at a limited tenure.
- Provide you with EMI-based repayment plans.
- Offer lower processing charges.
The balance transfer idea works very simply, but in an effective way. You just need to switch your high-interest debt to a more affordable repayment option. So that you can clear your dues faster and easily to save money.
Best Balance Transfer Credit Card In India
Below, we have listed some of the best credit cards that allow users to transfer balances and clear their debt easily. Have a look at it.
- SBI Credit Card
Allow users to balance transfer at a low interest rate. Apart from this, SBI provides a high approval rate and tenure options up to 24 months.
- HDFC Bank Credit Card
HDFC Bank credit card allows users to transfer balance for short-term and long-term repayment with a competitive interest rate.
- Axis Bank Credit Card
One of the best credit cards for balance transfer online instantly for eligible customers. Moreover, offers attractive EMI plans to users from 3 to 24 months.
- Kotak Mahindra Bank Credit Card
Kotak Mahindra Bank credit cards come with a low processing fee and offer quick balance transfer for amounts starting from 2500 INR.
- PNB Credit Card
Comes with one of the most affordable interest rates on balance transfer EMI plans. If you are looking for a budget-friendly repayment card, this could be an ideal choice for you.
These are some of the best balance transfer credit card that comes with a lower interest rate and with a high approval rate.
What are the key Benefits of a Balance Transfer Card?
A balance transfer credit card offers you several benefits that help you to repay your debt and save a certain amount of money.
- It offers you a lower repayment burden.
- Fast and quick approval and digital process.
- EMI-based planning helps to discipline your financial planning.
- It prevents the accumulation of late fees or penalty interest.
- Offer a chance to improve your credit score by repaying on time.
These are some of the key benefits of a balance transfer credit card.
Things to Consider Before Applying for a Balance Transfer Card
There are some things that you need to consider before applying for a balance transfer credit card. Points are listed below. Have a look at it.
- Check the interest rate and promotional period.
- Carefully check the processing fee and balance transfer charges.
- Check the maximum transfer limit.
- Check tenure flexibility.
- Check the fresh purchases during the balance transfer tenure.
These are some of the points that one should consider before applying for any balance transfer card. These simple checkpoints will help you grab the best deal.
Final Thoughts
A balance transfer credit card helps users to pay their debt easily using EMI options and save a handsome amount. However, before transferring, you need to obtain approval from the bank. Also, if one uses a balance transfer card wisely, it helps to take control of one’s finances by lowering the interest rate and managing debt smartly.
Therefore, it is important to choose a card that aligns with your interests, like one that offers quick approval with a lower transfer rate. Moreover, before stepping ahead with any random credit card, always check its interest rates, balance transfer, and tenure. These simple but effective habits can help you grab the best deal and save a certain amount.
FAQ’s
Q – How to avoid balance transfer fees?
Ans – One can avoid balance transfer fees by choosing a credit card that offers a 0 balance transfer fee with no processing fee.
Q – Best balance transfer credit card in India
Ans – One of the best balance transfer credit cards in India is the HDFC credit card. HDFC allows users to shift outstanding balance with flexible tenures (9 to 48 months).
Q – What is the maximum fee for a balance transfer?
Ans – The Maximum fee for a balance transfer varies by the bank. However, several credit cards charge 1% to 3% of the transferred amount, with a minimum fixed charge of 199 to 500.
Hi, my name is Sachin. I am currently studying Economics in college and have a strong interest in personal finance topics like credit cards and loans. Along with my studies, I work as a content writer, where I create educational and easy-to-understand content to help readers better understand financial topics and make informed choices.
