When Should You Consider Transferring Credit Card Balances?

Of course, an online credit card provides you with the freedom to spend without stressing about arranging cash instantly. It also lets a user shop now and pays later and also have emerged as a great tool to work as a backup for urgent financial needs.

The money spent on a credit card can be split into EMIs and paid effortlessly over months and never feel the burden. However, situations may arise that may not allow you to repay the outstanding balance due to financial issues or other obligations.

However, you just can’t leave your credit card outstanding unattended and affect the CIBIL Score. Transferring your credit card balance could help you and is nothing but transferring the owed amount from one account to another one.

If you don’t have much idea about when and how to transfer your credit card balance, let’s help you gather more information on it right away!

Should you Transfer Credit Card Balance Transfer?

Credit card balance transfer is apt for such customers who carry a higher debt on their credit cards and are in no position to repay immediately. In such condition, the best thing would be to pay the minimum balance due and transfer remaining money to another one offering a lower interest rate. In other words, it would be easier for the borrowers to pay it through the other card.

If you have multiple online credit cards, transferring the outstanding to one card could help you effectively manage the debt. Hence, transfer of the fund from one card to another may help you save the extra amount that you have paid if used the original card to make payments.

How about Doing it Often?

When you opt-in for utilization of the facility of credit card balance transfer, the credit consumption of the card may increase. Hence, having higher credit utilization may impact your Credit score negatively. Some companies may let you do in once a year, or some may allow twice a year. Some companies also offer reward points on availing the facility, and hence it is vital to assess the benefits before making a move.

What Things to Keep in Mind while Availing the Credit Card Balance Transfer?

Here are some things that you need to keep in mind while transferring your credit card balance to another card.

Credit card balance transfer is not free – Before doing the credit card balance transfer, you need to make sure to look at the charges levied on the usage of the facility. Thus, it would be prudent to be aware of all charges first before making a move!

Also, if you are looking to avail a balance transfer with EMI facility, you should always make sure to confirm the interest in all such EMI facilities.  

Some financial institutions also do not allow the credit card balance transfer facility unless you have reached a particular amount. In such a case, it becomes quite natural for a borrower to confirm the amount that needs to be reached while switching the outstanding figure to another card.

Another thing that you need to be sure about is reading the fine prints or going through the terms and conditions of the banks. Why? It may differ from banks to banks and know-how of the terms and conditions inside out before making the move is a must!

The Bottom Line

Now that you are aware of the basics of the credit card balance transfer, it would be good to assess your condition and needs before going for such a move! Happy online credit card management!