Credit Card Apply: With the help of credit card, people get a lot of benefits many times. Cashback, reward points, discounts, etc. are available on payment through credit card. However, along with these facilities, many times people also have to face problems with it. Let’s know about it…
Credit Card Update: Credit cards are very useful for people, but it has been seen many times that by taking credit cards, people get into the habit of spending extravagantly even when they do not have money. Initially people convince themselves that it is a small amount and we can get it back soon,
slowly things go out of hand and at the end of the month when the bill comes people realize the reality . In such a situation, it also happens many times that people are not able to repay the entire amount in one go, due to which people remain trapped in the vicious cycle of debt.
Credit card transfer
Due to high credit card bills, the CIBIL score also decreases. While people choose various options to clear their dues. One thing that can be considered is to transfer the remaining amount. It also reduces financial stress and strengthens the money management skills of the cardholder. In such a situation, let us know what is credit card balance transfer and how it helps in debt?
What is Credit Card Balance Transfer?
In case where one has quite a lot of outstanding debt on one’s credit card with high interest rate, balance transfer is something that can be beneficial. Cardholders can transfer their pending dues to any other financial institution at a lower rate of interest. While not all banks allow balance transfers, there are some that do and hence the need to choose wisely while choosing a credit card.
How can balance transfer option help with credit card debt?
Transferring the dues to another issuer can bring down the interest rates, this will definitely help the credit card holders to clear their dues and in many cases the due dates will also be taken care of. If the APR on the existing credit card is high, transferring the balance to a card with a lower or zero APR can help save on interest payments. The amount of interest that cardholders will have to pay further will be decided by their new credit card issuer.
How to transfer credit card balance?
- Find and apply for a new credit card from a bank that comes with balance transfer facility.
- After this inform the bank to start the balance transfer facility.
- Provide your existing card details and also indicate the amount to be transferred.
- Once the balance transfer is complete, start paying your dues within the stipulated time.
