Outlook Money
Managing multiple credit cards can become overwhelming as outstanding dues grow and interest keeps building. A balance transfer can help manage repayments better.
Balance transfer is a facility offered by banks and financial institutions that allows users to shift outstanding credit card dues to another card.
Users apply for a new credit card. Once approved, the old card dues are transferred and paid off by the new card issuer.
Transferring balances to another credit card with lower interest rates can help reduce interest costs on outstanding dues over time.
Credit card issuers may charge balance transfer fees ranging from 1–3 per cent of the transferred amount, depending on the provider.
Users must compare interest savings with processing fees and other charges before deciding whether a balance transfer is financially beneficial.
Balance transfer helps consolidate multiple credit card dues into a single card, making repayment easier and improving tracking of outstanding balances.
Users should carefully review terms and conditions and assess repayment ability before opting for a balance transfer facility.