Credit Card Balance Transfer: Comparison of Credit Card Balance Transfer by Top Banks

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Balance Transfer Credit Cards

What Is Credit Card Balance Transfer?

Balance transfer is a facility provided by many banks that allows you to transfer your outstanding balance on a credit card to a different credit card. Banks charge hefty interest rates on your outstanding credit card balance. To avoid paying large interest amounts, people can transfer their outstanding balance to a low interest card.


Comparison Of Balance Transfer Offered By Indian Banks

Name Of Bank Processing Fee Rate Of Interest Per Month Low Interest Period
SBI 

(View All SBI Credit Card Offers)

2% Of Transfer Amount Or Rs.199, Whichever Is Higher If Period Is 60 Days.

0 If Period Is Six Months

0-1.7% 60 Days – 6 Months
Axis

(View All Axis Bank Credit Offers)

1% Of Transfer Amount Or Rs.199, Whichever Is Higher 0% 3 Months
Standard Chartered

(View All Standard Chartered Credit Card Offers)

Na 0.99% 6 Months
Kotak Mahindra Rs.349 Per Rs.10,000 0% Na
HSBC (Convert Due Payment To EMI)

(View All HSBC Credit Card Offers)

1% Or Rs.149, Whichever Is Higher 0.99% For 3-12 Months

1.25% For 18-24 Months

 

3,6,9 &12 Months
Punjab National Bank Rs.172 Or More Depending On Transfer Amount 0.99% 6 Months

How Does Credit Card Balance Transfer Work?

When you initiate a balance transfer the following steps are initiated.

  • You Apply For A Balance Transfer
  • New Bank Issues A Demand Draft To Old Bank
  • Old Bank Receives Payment And Balance Is Paid
  • Now You Owe The Transferred Amount To The New Bank

Important Things To Know When Transferring Balance

  • It only makes sense to initiate balance transfer if the new bank/card has a lower interest than your old bank/card
  • Balance transfer cards have a lower fee only for a limited time, post which standard interest rates apply
  • You cannot transfer more than your credit limit. So, if your credit limit is Rs.50,000 and your outstanding balance is Rs.75,000, then you can only transfer Rs.50,000
  • Balance transfer reduces your credit limit in the same proportion. So, If your credit limit is Rs.75,000 and you transfer Rs.50,000, then you have only Rs.25,000 credit available to you
  • Low interest rate on your balance transfer card is not applicable on new purchases
  • Do not transfer balance frequently. It affects your credit score negatively

Benefits Of Credit Card Balance Transfer

  • You can avoid paying higher interest rate on your outstanding balance
  • It is a convenient way to get rid of your debt
  • It is a quick way to pay off your due credit
  • You get a buffer time to pay your outstanding balance at low or nil interest
  • It consolidates all your outstanding payment. So, you can worry about paying off just one credit card bill instead of keeping track of several cards

Top Credit Cards information:


Other Credit Card Offers:

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