While researching about credit cards you must have come across a term Balance Transfer. All your queries regarding Balance Transfer will be dealt with today in this podcast. First thing first, what is a balance transfer? A balance transfer is leverage that you get with your credit card during those times when you won’t be able to pay your credit card dues on or before the due date. With the balance transfer facility, you can transfer your credit card outstanding amount to another credit card, one that has a longer grace period and has a low-interest rate. 

Moving onto the other question How does it work? 

When you transfer the balance of one credit card to another credit card, the credit card issuer of the second credit card pays the outstanding balance to the first card issuer. This way the outstanding balance of the first credit card becomes the outstanding balance of the second credit card which you will have to pay in the subsequent grace period. There are various credit card issuers that offer this facility on their credit cards some of them are SBI Cards, HDFC Bank, ICICI Bank, and so on. You can read the complete information about Best Balance Transfer Credit Cards in India.

Some of the important things that you need to bear in mind are that using a balance transfer facility does not help you avoid the interest charges, next using this facility attracts a processing fee so you need to be very careful so that you do not incur more expense while saving yourself from the interest charges. If you pay the balance transfer amount on the second card during its interest-free period then you won’t be charged with any interest rate. Still, it all comes down to how responsibly you use a credit card as this is the only key to building a good-standing account.