The 5 Best Balance Transfer Credit Cards You Must Know About

 The 5 Best Balance Transfer Credit Cards You Must Know About

credit card balance

A balance transfer credit card is generally used to make savings on the interest charged against a loan. Borrowers transfer the liabilities to a credit card that charges a lower rate of interest in a process known as balance transfer. The money thus saved can then be invested back to repay the debt further, so that the balance statement can be closed earlier. 

Many people like to apply for 0 APR cards so that they do not have to pay any interest. However, you need to be wary of the fine print in the terms and conditions that often make subtle hints on how long the 0% interest period will last. 

Keep in mind that you will only be able to use 70-80% of your credit card balance (credit limit) towards balance transfer. You must be careful during the repayment period, and underutilize the rest of the credit amount so that your credit score remains steady.

Best 5 Balance Transfer Credit Cards in 2021

Let us now take a look at the best credit cards that are popular in 2021.

·     Bajaj Finserv RBL Bank Balance Transfer: The eligibility statement for this card reads that you can apply for this card only if you are an existing customer with the bank. Your outstanding balance must be at least Rs. 5000 and at least 2 months should be left until balance statement closure for your application to be considered. You can use a maximum of 80% of the credit limit issued to you. You can opt for the Bajaj Finserv RBL Bank SuperCard to avail of amazing discounts on shopping if you are looking for more than one card.

·         SBI Card Balance Transfer: This balance transfer credit card is popular among cardholders because it does not charge any interest in the first two months following the balance transfer. After this period, a nominal interest of 1.7% per month is imposed. The bank does not charge any processing fee for up to 6 months. For a 2-month repayment, Rs. 199 is charged as a processing fee. If you are a Visa cardholder (SBI), the outstanding balance will be transferred to your SBI Card Balance Transfer within 3 working days. For other cards, a cheque was issued earlier. However, following safety norms during the pandemic, NEFT is used nowadays. The ease of application is impressive; you can apply for the card via net banking, mobile banking, or even SMS!

·         HSBC Bank Balance Transfer: With the HSBC Bank Balance Transfer, you can make repayments when a minimum period of three months is left until balance closing. You can spread out the payment to up to 24 months. If the repayment period is up to 12 months, the bank charges a flat interest rate of 1.08% per month. Post this period, a flat rate of 1.25% per month is charged. The processing fee is 1%, with the minimum amount fixed at Rs. 149.

·         ICICI Bank Balance Transfer: You can transfer your outstanding balance to this balance transfer credit card if the amount is not less than Rs. 15,000. The maximum liability value that you can transfer to this card is Rs. 3 lakh. The bank also requires you to have a good history regarding loan repayment. Therefore, a good credit score definitely helps you to secure this credit card. The interest rate on the outstanding amount is not fixed, and it largely depends on the customer’s profile.

·         HDFC Bank Balance Transfer on EMI: The greatest advantage of owning this credit card is that it requires no paperwork. The repayment period should be at least 9 months, and the interest per month is 1.10%. The EMI amount can be as low as Rs. 27, so there are probably no regulations on the minimum loan amount.

These are the top 5 balance transfer credit cards as of 2021. The best way to wade your way through your shortlist is to stay informed. You need to do your own research and find the credit card that best caters to your requirements.

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