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How to make credit card balance transfer?


Date: 21 Feb 2016    Group: Finance and Investments    Category: Banking   

What is balance transfer credit card? Is it different from normal credit card? Can we transfer the debt that is taken using a high interest credit card to a low interest credit card? If it is possible, how can we transfer debt from one card to the other?
Experts: do assist.


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Author: Kailash Kumar    22 Feb 2016      Member Level: Platinum     Points : 3  (Rs 3)    Voting Score: 0

Paying credit card by using another credit card is a danger symptom. The balance transfer credit cards are meant for such transactions. In general the monthly interest @ 1.5 % to 3% is charged by the credit card companies which means 18% to 36% per annum as against what we get from banks on our fixed or term deposits which is around 8%. The credit card companies lure the customer to transfer their outstanding balance to their balance transfer card at lower rate of interest. However one should take into account the processing charge etc. also in case levied by the companies.

Author: Mahesh    22 Feb 2016      Member Level: Gold     Points : 3  (Rs 3)    Voting Score: 0

Paying across different credit or debit card is called balance transfer. You have to make the credit transferable to another card for this to work. This is usually done by those who want to get rid of bigger debt. So they use another credit card and pay for the debt of existing. And for the current card they pay using snowball method. So eventually it works out if the card to card payment fee is low. Otherwise it ends up with lot of more money to be payable on second card. Each person uses this method for different reason. Some use for debt and some use for proper managing of cash flow.




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