Transferring credit card balance

If you have more than one credit card, you can transfer the balance amount outstanding on one credit card to another credit card. You may be required to exercise this option when you are faced with a financial emergency and are unable to pay up your credit card bill.

The facility of transferring credit card balance allows the cardholder to transfer the balance amount from one card to another card. This facility can be used to transfer the balance amount to a card which has a lower or zero interest rate as compared to the card for which the balance is outstanding. If the outstanding amount is substantial, it makes sense to go for such a transfer to save on interest cost. However, one needs to keep in mind that the minimum amount on the first card needs to be paid before transferring the balance amount to another card. Also, the credit limit of the second card should be sufficient enough to accommodate the balance amount to be transferred from the first card.

This transfer facility not only allows the cardholder to transfer amount outstanding on a credit card, but it also provides the facility to transfer other loans such as car loan, home appliances loan, furniture and fixture loan, etc. However, it is pertinent to note that you may be required to pay transfer fee at a certain percentage of the total amount of transfer. Such transfer fee may be up to 3% of the total amount. Also, the bank may specify the minimum transfer amount acceptable and the maximum transfer amount permissible, which is usually 60-75% of the card limit.