Pros and Cons of Credit Card Balance Transfer


Credit card balance transfer is a facility by which credit card users can transfer the pending dues in one card to another that offers lower interest rates. The facility often comes as a blessing to cardholders troubled by hefty pending dues as they can pay for their primary card and transfer balance to the next.

Many banks in India offer balance transfer feature for credit card holders. Some of the top banks that provide the facility include ICICI Bank, State Bank of India, HSBC and Axis Bank

Advantages of Credit card balance transfer

. Convenience of not paying additional interest on pending bill

. Offers a smooth way to save users from credit card debt

. Option to pay off pending amount from multiple credit cards


. The usage of the feature may result in credit limit reduction

. Frequent usage of the feature may be frowned upon by banks

. Fresh purchases on new card do not come under the low interest offer

The Balance Transfer feature and EMI on credit card are different. Users cannot avail the feature on credit cards of the same company.

The pending amount can be transferred only to a credit card of another company.

The feature, in short, is a strategy used by banks to woo potential customers into using their credit cards.


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