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    Credit Card Balance Transfer

    What are balance transfer cards?

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    Credit Card Balance Transfer

    Before you start thinking of going in for a balance transfer, you need to first know what a credit card balance transfer actually means. To put it in the simplest of terms, balance transfer in credit cards means that you transfer the amount you owe on one card to another card. By doing this you actually end up paying for the first card and owe that amount on the other credit card. One main reason why someone might go in for a balance transfer could be that the other card offers lower interest rates which would mean it would be cheaper to pay it back through the other card.

    Credit cards that offer balance transfer

    There are many banks that offer credit cards that have balance transfer facilities available on them. Some such banks are:

    • ICICI Bank

      The balance transfer facility provided by ICICI Bank allows the balance of any credit card to be transferred to their cards. The repayments for such transfers can be done in either 3 or 6 months’ worth of instalments. There is an interest charged on the amount that is transferred and is payable along with the amount transferred. The bank also offers the option to foreclose the payments provided all the balance amount and interest is paid up.

    • State Bank of India

      The facility for balance transfers of credit cards offered by SBI again follows the same general principle and can be initiated by either logging into the credit card account or sending the bank a specific SMS or even just calling up their customer care facilities. The repayment periods can be 2 months or 6 months however, an interest of 1.7% per month is charged only if the tenure is 6 months.

    • HSBC

      The facility offered by HSBC for balance transfers can be taken for tenures that range from 3 months, all the way up to 24 months. The interest rates are also charged as per the tenure and a processing fee may also be applicable. Just like SBI the balance transfer facility can be utilised by either calling the bank, sending them an SMS or even by simply sending them an SMS. HSBC does offer the facility to foreclose on the balance transfer, for which no extra fee may be charged.

    • Kotak Mahindra Bank

      Even Kotak Mahindra bank offers balance transfer facilities. They will allow a minimum of Rs. 2,500 to be transferred. There is no limit on the maximum amount as long as the amount being transferred is not more than 75% of your credit cards limit. There is a processing fee that will be charged for the options, and it is based on the amount that is being transferred. The application process, once again, can be initiated through calls, SMS or the online portal maintained by the bank.

    • Axis Bank

      Axis Bank too offers this facility and with them, the minimum amount that can be transferred is Rs. 5,000. The tenures available are 3 months and 6 months, with the shorter of the two not attracting any interest while the latter, 6 months, will have an interest charged on the transfer.

    • Standard Chartered Bank

      The facility provided by Standard Chartered Bank allows customers to transfer balances of up to Rs. 5 lakhs to their SC credit cards. The interest rate charged for the first 6 months is about 0.99% a month, after which the interest rates associated with the card will be charged. Customers can also make a payment of a minimum of 5% of the transferred amount each month and the facility can be availed by sending the bank an SMS indicating you wish to avail a balance transfer.

    Comparison of credit card balance transfer offered by top Indian banks

    Here is a table that depicts and compares the credit card balance transfer features offered the topmost credit card issuers in India.

    Credit Card Issuer Processing Fee Rate of Interest per month Applicable Lower Interest Rate Period
    Axis Bank 1% of transfer amount or Rs.199, whichever is higher 0% 3 months
    State Bank of India 2% of transfer amount or Rs. 199 whichever is higher if the period is 60 days and zero if the period is 6 months 0%-1.7% 60 Days-6 Months
    Standard Chartered Bank NA 0.99% 6 Months
    Punjab National Bank Rs.172 or more depending upon the transfer amount 0.99% 6 Months
    Kotak Mahindra Bank Rs. 349 per Rs. 10000 0% NA
    HSBC (Convert due payment to EMI) 1% (minimum Rs. 149) 0.99% for tenures between 3-12 months 1.25% for tenures 18 months and 24 months 3,6,9,12 months

    How to transfer balance from one credit card to another?

    Credit card balance transfer is the best option to pay off huge and pending credit card bills. However, transfer of credit card balance makes sense only when the bank that you are transferring your balance to offers rates that are more lucrative than the original credit card on which you have pending dues.

    The most important point to note about credit card balance transfer is that you can transfer only that amount to your new credit card which is within its credit limit. So, if your second credit card has a limit of Rs.50,000 and your pending dues from previous credit card are Rs.75,000, then only Rs.50,000 can be transferred to the new credit card under the balance transfer scheme.

    There are forms which various banks furnish to facilitate application of credit card balance transfer facility. The following information needs to be furnished while applying for credit card balance transfer.

    • Credit Limit
    • Expiry date of the credit card
    • Outstanding credit amount
    • Credit card number

    Most banks require a few documents to be furnished in order to accept your request for credit card balance transfer.

    • Credit card photocopies
    • Last 3-6 credit card bill statements
    • Address proof

    The most rewarding feature of credit card balance transfer is that the entire pending amount gets paid in the form of a demand draft that is issued by the new credit card company towards your old credit card. This saves you the burden of additional interest payment on the credit card pending bill. The interest now that you will pay will be decided by your new credit card. Generally, the interest charged to avail credit card balance transfer facility is less than what is charged by banks on credit card pending bills. However, this lowered rate of interest is only applicable for a specific period of time after which standard interest rates apply. Thus, it is crucial to pay off your credit to the new credit card issuer within the stipulated time in order to avoid hefty interest rates.

    Important points to watch out for while using credit card balance transfer

    No matter how convenient and lucrative credit card balance transfer sounds it is always a good practice to know all important aspects of it before availing the same. Listed below are some points that significantly affect your decision of availing credit card balance transfer to pay off your existing credit card debt.

    • Availing credit card balance transfer reduces your credit limit in the same proportion. For example, if your have a credit card limit of Rs.75,000 and you have transferred a balance of Rs.50,000 then the effective credit limit available to you for all other credit card transactions is just Rs.25,000.
    • The best way to use credit card balance transfer is to pay off all your dues within the free or nominal interest rate period. After this, standard credit card interest rates apply which require higher payments to be made.
    • The lower interest rate for credit card balance is not applicable to new purchases that you make on your credit card. These transactions fall under standard interest rates offered by the credit card issuer.
    • Balance transfer is generally offered to customers who have been a credit card user for one particular company for at least a year. This is to ensure that credit holders do not keep hopping from one credit issuer to another in order to avail lower rates of interest.
    • While you still may have credit left after transfer of previous credit card balance, it is always a good strategy to refrain from using your credit card until all balance transfer payments are paid and all subsequent charges are cleared.

    Key benefits of Credit Card Balance Transfer

    Credit card balance transfer is a very popular and convenient feature of credit cards. This options helps cardholders get out of circular debt cycles that keep growing worse due to compounding rates of interest. Let us look at some of the most striking benefits of credit card balance transfer.

    • Helps you save on the extra interest amount that you end up paying as a result of accumulated and pending credit card bill
    • Convenient way to get rid of accumulated credit card debt as compared to other means of paying back credit
    • Quick processing for balance transfer makes it easy for customers to avail and get rid of their pending dues
    • Debts from one or more cards can be transferred when making use of credit card balance transfer feature
    • A buffer time is allocated to cardholders to pay off their outstanding amount. This period has zero rate of interest or a very nominal rate of interest

    When you do go in for a balance transfer, you will need to keep a few things in mind. The first being that some banks will offer this facility only if the balance being transferred is for a credit card not issued by them. Most banks don’t pose any restrictions on the type of card for which balance transfers are being availed. There may also be conditions that govern the minimum and maximum amounts that can be transferred. All conditions and rates mentioned here are decided by the banks and could change at any time so it would be best to confirm the same with the bank before actually applying for balance transfer.

    FAQs on Credit Card Balance Transfer

    1. How will I know if I should go for credit card balance transfer facility?

      If you have an existing credit card with balance being charged a high rate of interest then it is advisable to go for credit card balance transfer to save up on interest payment.

    2. How much amount can I transfer to the new credit card?

      You can only transfer an amount equal to the credit limit of the new credit card. For example, if the outstanding credit card balance on your existing credit card is Rs.75,000 and your new credit card has a credit limit of Rs.50,000 then only Rs.50,000 can be used for transferring balance. Rest needs to be paid by the you out of your own pocket.

    3. Is balance transfer helpful?

      How profitable is balance transfer for you depends upon the interest that you are currently paying on our existing credit card versus the rate of interest plus charges being charged by the new credit card. If the difference is substantial then you will surely save some extra money that you might be paying as interest amount.

    4. Does credit card balance transfer take a long time to process?

      No. Credit card balance transfer is a quick and almost hassle-free process. The time taken usually is a few days and varies from bank to bank.

    5. How many times can I transfer my credit card balance?

      It isn’t a good idea to keep transferring your credit card balance. And banks too do not entertain constant balance transfers. As such the number of times you can transfer your balance is a subjective thing which is purely at the discretion of the bank you have in mind.

    News About Credit Card Balance Transfer

    • Balance Transfers of Credit Card Debt to Personal Loan is Now an Easy Process

      Earlier personal loans used to be solicited by consumers for instances like wedding, education etc. But nowadays, more and more people are applying for personal loans to clear credit card debts. Consolidating all credit card debt into a single personal loan allows users to pay off the dues at a lower rate of interest and get a longer tenure to payoff the debts in.

      The process of getting personal loan for clearing credit card debt has become much easier now with banks offering balance transfer option. For a consumer unable to repay the monthly payment due on the card, balance transfer to a personal loan is the best available good option.

      However, just balance transfer is not enough to become debt-free. The consumer must be disciplined in their future expenditures to ensure they don’t end up accumulating more debt, while they pay of the existing debt in 12 to 18 months.

      Also, interest rates on credit cards are somewhere between 24% to 48% p.a., whereas a personal loan can be availed at 18% to 24%, depending on the credit score of the borrower. So, getting a balance transfer loan at 24% for a credit card debt calculated at the rate of 48%, can directly save on interests payments of up to 24%.

      Further, balance transfer also helps the borrower to improve their credit score, as they are shifting to a cheaper loan from an expensive one.

      1st June 2017

    Credit Card Reviews

    • RBL Bank Credit Card
      "Happy with the services"
      0.5 5.0/5 "Blown Away!"
      RBL is pretty good in the overall experience. I bank with them for a credit card and there are no issues while using it. They have always sent me clear statements and I do not have to recheck the same. The credit limit is pretty decent and I am happy to use the card.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 18, 2017
    • Bank Bazaar Credit Card
      "Its Good"
      0.5 5.0/5 "Blown Away!"
      When I got good credit card service from Bank Bazaar, they helped and guided through out the process. I am satisfied with them, the website is easy to navigate for comparing the financial offers, which is available in the market its very good.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 18, 2017
    • HDFC Bank Credit Card
      "Easy to hold"
      0.5 5.0/5 "Blown Away!"
      I am holding a credit card with HDFC. They provide reward points for every purchase. satisfied with the service. The customer service and response with the bank is comfortable. I am totally happy with the credit card with HDFC. I can recommend the card.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 18, 2017
    • HSBC Bank Credit Card
      "Easy to hold"
      0.5 5.0/5 "Blown Away!"
      I am holding a credit card with HSBC. They provide reward points for every purchase. satisfied with the service. The customer service and response with the bank is comfortable. I am totally happy with the credit card with HSBC. I can recommend the card.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 18, 2017
    • HDFC Bank Credit Card
      "Nice experience"
      0.5 5.0/5 "Blown Away!"
      HDFC bank is excellent in the offers on the credit card. The customer services are professional, and they communicate on time and inform me the details of the offers I am eligible for. There are no charges related to the card and my transactions are always clear.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 18, 2017
    • HSBC Bank Credit Card
      "Its Good"
      0.5 5.0/5 "Blown Away!"
      I thought to go with HSBC because my friend is holding the same credit card. Hence I am impressed with that card, they gave me satisfactory credit limit. Their service is goo they dispatched my credit card without any hassles. I am fine with the notification.
      Was this review helpful? 0
      , mumbai
      Reviewed on Nov 18, 2017
    • SBI Cards Credit Card
      "Very good services & response"
      0.5 5.0/5 "Blown Away!"
      State Bank of India is good on the credit card offers. The credit limit is to my satisfaction and the transactions are smooth and there is no decline in the transactions. The benefits are good and the rewards are also useful. The charges are also normal.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 18, 2017
    • Bank Bazaar Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      The customer service and response was excellent with Bank Bazaar. I am using this website for more than one year. It is easy to check my credit score without any hassle. The online website was customer friendly and easy to navigate. Overall it was excellent.
      Was this review helpful? 0
      , jaipur
      Reviewed on Nov 18, 2017
    • ICICI Bank Credit Card
      "Best card to use"
      0.5 5.0/5 "Blown Away!"
      I am using ICICI platinum credit card from last 8 years, they did not charge any annual fee at the time of getting this credit card. ICICI bank provides good services on credit card when compared to all other credit cards. I feel the credit limit of Rs 60000 is less in this credit card. I get offers like cash back and reward points. I use this credit card for my personal use.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 18, 2017
    • Kotak Credit Card
      "Excellent"
      0.5 5.0/5 "Blown Away!"
      My credit card was taken with Kotak. The customer service and response was very good. The charges are normal. The credit limit was low, It would be great if they increase my credit limit. They charge annual fee but it will be waived off, If I transact more.
      Was this review helpful? 0
      , jaipur
      Reviewed on Nov 18, 2017
    • Bank Bazaar Credit Card
      "Excellent"
      0.5 4.5/5 "Excellent!"
      The services at Bankbazaar is overall good and they have done a good job. It was a quick process for me and they contacted me on time and gave me the necessary details. The portal was easy to navigate through and the comparison options are supportive as well.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 18, 2017
    • Citibank Credit Card
      "Overall good"
      0.5 4.0/5 "Great!"
      Everything was fine with Citibank and the services are okay too. I was contacted on time and I was offered the credit card. The credit limit is not up to mark. I suggest that the bank should have checked the transactions of the other bank cards I hold and provide a better limit.
      Was this review helpful? 0
      , pune
      Reviewed on Nov 18, 2017
    • Bank Bazaar Credit Card
      "Good Banking Website"
      0.5 5.0/5 "Blown Away!"
      I used to get sms from Bank Bazaar for the financial products then I downloaded their mobile app. I started using it, then I applied for the credit card, I got good response from your end. The way of approach and queries handling is good with them, hence again I applied for personal loan through them.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 18, 2017
    • HDFC Bank Credit Card
      "Satisfied with the services"
      0.5 5.0/5 "Blown Away!"
      HDFC Bank has offered me a decent credit limit on the credit card and when ever I use the card there is no hassles. I get intimated about my transactions and everything is clear online. There are no charges related to the card and in all I am glad with the offers too.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 18, 2017
    • HSBC Bank Credit Card
      "Good card to hold"
      0.5 4.0/5 "Great!"
      HSBC credit card is good for normal transactions, its gives best reward point and other offers based on my transaction. Credit limit is also good they gave me Rs. 60,000 as a limit. Bill got generated recently with the out standing of Rs.5300, I made the complete payment.
      Was this review helpful? 0
      , bangalore
      Reviewed on Nov 18, 2017
    • Axis Bank Credit Card
      "MY zone with AXIS"
      0.5 4.0/5 "Great!"
      I hold a my zone credit card with AXIS bank. For every 100 rupees i am spending they will give 1 point. The customer service and the application with the bank is friendly. I am holding this account for more than 1 year. Easy EMI options were we can convert the amount to installments.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Nov 18, 2017
    • ICICI Bank Credit Card
      "Good card"
      0.5 5.0/5 "Blown Away!"
      I hold a coral credit card with ICICI bank. I get 100 rupees discount with book my show app. I am using this card for more than one and half years. I get reward points with this card. Easy EMI option available. The application of this bank is very good.
      Was this review helpful? 0
      , coimbatore
      Reviewed on Nov 18, 2017
    • Bank Bazaar Credit Card
      "Overall good"
      0.5 5.0/5 "Blown Away!"
      I am pretty happy with the services and response of Bankbazaar. They are very fast in the whole process. The process is a bit lengthy when it comes to registration step, and there is a option where I am asked for the Aadhar number and though it is correct and linked everywhere, like to the bank or to the mobile. At times the number does not get accepted and I need to re-do the whole process again so if this part is taken care off then the whole process would be hassle free.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 18, 2017
    • Citibank Credit Card
      "Excellent process and services"
      0.5 5.0/5 "Blown Away!"
      I never had any problem to get the cashback credit card of Citibank. I am using the card and there are no issues. The transactions are smooth. The statements are sent to me on time and the billing cycle in good and the credit limit is to my satisfaction. It is a life time free card.
      Was this review helpful? 0
      , hyderabad
      Reviewed on Nov 18, 2017
    • Bank Bazaar Credit Card
      "Good very and very fast"
      0.5 5.0/5 "Blown Away!"
      Bank Bazar is doing best services to the public who can sit in one place and get their bank needs especially from banking. Earlier we need to run Piller to the post to get the work done even now. But, Now a days Bank Bazaar will come forward to fulfill the needs of the customer by sitting in one point. I really appreciate bankbazaar team and its efforts.
      Was this review helpful? 0
      , chennai
      Reviewed on Nov 18, 2017
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