What is a Balance Transfer Credit Card?

Are you not coping up with your credit card debts? Being in debt or having pending credit card dues can be gruesome. The constant phone calls and reminders from Bank officials can put you in mental stress.

In this case, you might consider transferring your balance using a Balance Transfer credit card. This can be an efficient solution to your credit card problems.

What does Balance Transfer mean?

Balance transfer basically means to shift your account debt from a financial institution charging a higher APR (Annual Percentage Rate) to another with a considerably lower APR. For example, you have an amount outstanding of Rs. 5000 on your credit card and the due date has already passed. The amount of interest that you’re currently paying is Rs. 200, which is pretty high. In order to make things easier, you can transfer your pending due from your original account to a new one with a low and economical APR of Rs. 100. This will help you pay back with ease and make your life hassle-free. When you look for a balance transfer credit card, you should shortlist the cards that come with a very low-interest rate along with a zero per cent interest period.

When to Apply for a Balance Transfer Credit Card?

A balance transfer is the most appropriate plan of action in case you’re dwelling in Credit Card Debt. A balance transfer basically means changing your credit card account from a high APR institution to a lower APR one just so that you can repay the outstanding amount with much ease. If you’re suffering from a constantly exceeding credit card debt, then applying for a balance transfer is the rightmost thing you can do.

How to Transfer your Balance using a Balance Transfer Credit Card?

Here is a step by step guide how you can transfer your balance-

• Make a note of all your outstanding dues, interest rates and total fine that needs to be paid
• Choose the appropriate credit card
• Compare the Credit Limit of the new card to the previous one and check whether it will solve the purpose
• Check the balance transfer fees
• Apply for the credit card
• Request for a balance transfer to the respective bank and all the outstanding dues

Note- When you transfer your balance from an account to another, a certain processing fee is meant to be paid. This fee depends on the bank you are applying for.

Documents Required to Apply for a Balance Transfer Credit Card

Following are the documents you’ll need-

• Identity proof- PAN Card, Aadhar card, driving license
• Address proof- PAN card, Aadhar card
• Income Proof- Form 16, ITR proof
• Two passport-sized photographs
• Credit card photocopies
• Credit Card Bill statements

Best Balance Transfer Credit Card to Apply 2024

Before applying for a balance transfer credit card, checking the best options is always important.

Following are some of the banks that allow you to transfer your balance-

Conclusion

A balance transfer can save you from the increasing credit card debt. The credit card must be chosen wisely considering your current credit card’s rate of interest along with the transfer fee and charges. You should apply for a balance transfer only if the difference is substantial and changing your bank is worth the transfer fee you’ll be paying.