New Delhi: Paying credit card bills on or before the due date is one of the basic things which can help in improving the credit score and creditworthiness. In some instances, a person may not be able to pay the entire credit card bill in one time. Following which, the credit card bill should be either converted into equated monthly instalments (EMIs) or the unpaid balance amount will attract interest rate.
According to the prescribed guidelines, banks and the dedicated credit card issuing institutions are allowed to charge interest from 20 to 44 per cent on the credit card bill amount taken forward to next month. Similarly, banks also levy fee for converting the balance amount into EMIs and the user is also required to pay interest on the EMIs for designated months.
Credit card balance transfer is one such feature that allows a user to transfer the credit card balance from one credit card to another credit card.
Several banks offer the facility of credit card balance transfer at zero per cent transfer fees, however, the bank may charge a balance transfer APR. Balance transfer APR is the interest levied on balance transfers. Some banks offer competitively low APRs which can help an individual to pay off the debt easily.
A person can avail a credit card balance transfer facility by requesting the bank through the online or offline medium. The scheduled commercial banks have different balance transfer limits and tenures in which the individual is mandated to repay the complete bill which was transferred.
You should have a good credit score and healthy credit card bill payment history to avail credit card balance transfer facility. A person can successfully transfer the balance following the approval from the bank.