Money in bank in 24 hours

Apply now

What is a balance transfer credit card and how credit card balance transfer works?

  • Highlights

  • Balance transfers help repay outstanding debt easily

  • Carry out a transfer with a balance transfer credit card

  • Weigh the costs of the balance transfer before switching

  • Utilise the SuperCard’s Transfer N Pay facility to do so

When you have pending credit card dues coupled with compounding interest rates, you may want to carry out a balance transfer to ease the situation. It allows you to reduce financial stress and strengthen your money management abilities. But what is a balance transfer credit card? Read on to find out.

What is a balance transfer?

Assume that you have a significant amount of outstanding dues on your credit card and have to pay a high interest rate too. In such a scenario, a balance transfer involves transferring the pending dues to another financial institution that offers you an economical rate of interest. The key benefit is that you will be able to clear your outstanding dues in one go, reduce your expenditure towards penalty charges and have just one, low-cost payment to make each month.

What is a balance transfer credit card?

As the name suggests, a balance transfer credit card is one that allows you to carry out a balance transfer. Not all cards allow this in equal measure, so be sure to pick one smartly if this is your goal. You can transfer your outstanding balance to this new card and clear the amount more conveniently, at a lower cost. Therefore balance transfers not only ease stress, but actually help you a significant sum.

Experience the benefits of 4 cards in 1 with your pre-approved SuperCard - Apply Now

 

How a credit card balance transfer works

Apart from a low interest rate, certain balance transfer credit cards offer you other benefits too. For example, some come with a pre-determined 0% interest period, while others offer you nominal interest rates for a specified duration. Here it is important to note that when carrying out a balance transfer, you typically have to pay a processing fee. Therefore before you carry out a balance transfer, calculate how much you will save on the whole. To be effective, your savings should be more than the processing fees and additional costs that may be involved in the balance transfer process. It’s best to do a cost-benefit analysis beforehand to have absolute clarity.

How you can tackle multiple debts

You can carry out a credit card transfer to get rid of debts piled up on multiple cards, not just one. So, assuming that you secure a credit limit of Rs.2 lakh, you will be able to utilise it to tackle outstanding balances of Rs.75,000 and Rs.60,000 on separate cards, through one credit card. With one, and not multiple, due dates to keep track of, you can repay your dues more easily.

How to do a credit card balance transfer: a step-by-step guide

The process is as straightforward as it seems. Take a look at how to go about transferring your balance to another issuer.

  • Check your current outstanding dues, interest rates and penalty charges.
  • Find a credit card that offers you a lower rate of interest.
  • Check that the credit limit is sufficient given your outstanding debt.
  • Assess the balance transfer fees and decide whether the swap is worth it.
  • Make a credit card application with your new issuer.
  • Request a balance transfer and clear your debt.
 

Additional Read: How to Check Credit Card Balance

One of the best balance transfer credit cards is the Bajaj Finserv RBL Bank SuperCard. Its Transfer N Pay facility lets you utilise up to 80% of your credit limit for balance transfer purposes. To qualify for this programme all you need to do is stay clear of any pending outstanding payments for more than 30 days. Then, simply send an SMS to 5607011 with the following details to start the process: < BTY >< Last 4 digits of other the bank’s card number >

Apart from being one of the top balance transfer credit cards, The SuperCard also offers you other beneficial features like the ability to make 50-day, interest-free cash withdrawals at ATMs and avail a 90-day, interest-free loan by converting your credit limit. Further, it helps you shop economically through credit card deals and discounts, and allows you to convert spends of over Rs.3,000 into EMIs.

Now that you know how a credit card balance transfers works, waste no more time in applying for the right card to avail this facility. To apply for a SuperCard as quickly as possible, be sure to check your pre-approved offer first. By entering your name and contact number you can get instant approval through a customised deal.

Additional Read: Student Credit Card

Pre-Approved Offer

Please enter your first name
Please enter your last name
Please enter 10 digit mobile number

I authorize Bajaj Finserv representative to call /SMS towards this application and other products/services. This consent overrides my registration for DNC/NDNC. T&C

How would you rate this article

 Please let us know why?

What did you dislike?

What did you dislike?

What did you like?

What did you like?

What did you like?