The use of a credit card is similar to wielding a two-edged sword. While a credit card offers many advantages, such as ease, quick access to credit, reward points, and incentives, inappropriate usage of a credit card can put you in serious financial difficulty. The debt that has the highest interest rate—30–40% annually—is credit card debt.
How does a credit card transfer benefit you?
Simply because you have the option to move your credit card debt to a new card does not free you of the need to pay off the balance. Although there are many advantages to your credit, you should fulfill your existing debt.
Savings on Interest Paid: Normally, when you transfer a credit card debt, you do it to a card that has a cheaper interest rate than your current card. Saving on interest payments is therefore a big benefit for anyone who is unable to pay off their credit card debt.
Ease of use: Making individual payments and keeping track of each one when you have several credit card bills may be laborious and time-consuming. When you transfer a credit card balance, you just have to make future payments to one card.
A credit card to which you transfer your outstanding allows you a short buffer period during which no interest is charged. This gives you a breather and allows you to make arrangements for your future payments.
1. IRCTC SBI Platinum Car
- Allows two options for Balance Transfer
Option1: Balance Transfer for 60 days at 0% Interest with a small processing fee of 2% or Rs 199 (whichever is higher)
Option 2: Balance Transfer for 180 days at 1.7% interest rate p.m with zero processing fee
- Minimum transfer amount of Rs 5000/- and maximum transfer amount of 75% of the credit limit
- The outstanding on your other bank’s Visa Credit Card could be transferred to your SBI Card within 3 working days.
- If your existing card is other than Visa, you will receive a cheque for the balance transfer within 5 working days
2. Axis Bank Insta Easy Credit Card
- The balance transfer plan is offered for 3 months at 0% interest; afterward, 2.95% each month in interest is charged. A processing fee of 2%, or Rs 199, applies (whichever is higher)
- There is also another balance transfer option that charges 0.75% interest for the first six months before increasing to 2.95% each month. This has a processing fee of 1% or Rs. 100. (whichever is higher).
3. SBI Card Elite
- You can transfer high interest-paying credit card balances to SBI Elite Credit Card
- For a period of 60 days, the transfer can be done at 0% interest and a processing fee of 2% or Rs 199, whichever is higher, is charged
- The balance can also be transferred for a longer term of 6 months at an interest of 1.7% p.m with zero processing fees.
- The minimum transfer amount applicable is Rs 5000/- and the maximum is 75% of your credit limit
4. Axis Bank Signature/Wealth Credit Car
You can choose from two alternative balance transfer options offered by this card at your discretion.
- For three months, a short-term balance transfer plan is provided at 0% interest; after that, 2.95% per month in interest is applied. The processing cost for this balance transfer is 2% of Rs 199. (whichever is higher)
- Additionally, a balance transfer with 0.75% interest is offered for 6 months before incurring 2.95% p.m. in interest. This option’s processing is identical to that of the previous option.
5. SBI Signature Card/ SBI SpiceJet Card/Yatra SBI Card
- This card offers 0% interest on the transfer of credit card balances till 60 days, post which an interest of 1.7% p.m is charged.
- The minimum transferable amount is Rs 5000/- and the maximum amount is limited to 75% of the credit limit.
Credit Card balance transfer is an option available, ideally, when you have run out of options to set your debt in place. It is not good to make balance transferring a habit. It is always good to use your credit card judiciously in the first place so that you do not run into situations like these. Remember that with the rollover of your credit card debt, your credit score goes lower.