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Eliminate Credit Card Debt with a Balance Transfer Credit Card: A Complete Guide

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May 9, 2023


What’s Inside

Are you drowning in debt and unable to pay it off? Credit card debt can take a while to repay, with the soaring interest rates. A standard credit card will not offer extra support due to compounding interests. This is where a balance transfer credit card will save your day.

These cards let you transfer credit card balance to bank account, which has a lower rate of interest. As a result, it improves your financial condition.

Let’s explore what is a balance transfer credit card.

How Does A Balance Transfer Credit Card Work?

Suppose you haven't paid your credit card bills on time and now face serious debt. Along with the high-interest rates, clearing this debt can be challenging. So, transferring the balance from your credit card to another credit card account will be the perfect solution.

A balance transfer credit card will help you make the transfer smoothly. The primary advantage of these types of credit cards is their low-interest rates. This way, you can clear the debts conveniently without worrying about accumulating interest.

After card approval, you can also talk to the card provider about the facilities you'll receive.

Further, it might take a few weeks to almost a month to transfer your funds from your regular credit card to the balance transfer card. Ensure you continue paying the associated bills until the transfer process is over.

Reduced Financial Pressure

The best balance transfer credit cards will enable you to stabilise your financial condition quickly. Their interest rates might be as low as 1.8%, which will be immensely helpful in paying off debts initially.

Moreover, these cards may have a 0% interest rate facility for a limited period.

All these features automatically reduce your financial burden. It can even improve your damaged credit score while you plan your debt payments systematically.

As you pay off your dues through the new credit card account, your credit history will enhance with time.

How to Apply for a Balance Transfer Card?

Many credit card providers offer a hassle-free process of balance transfer credit card application. So, visit the provider's official website, understand the credit card details, and check the eligibility criteria.

If you fulfil the requirements, carefully go through these details -

  • Balance transfer limit
  • Required annual income
  • Interest rates and special rewards
  • Fund transfer mode - NEFT, net banking or demand draft
  • Application process
  • Identify proof documents

In addition, check out the paperwork required for the balance transfer process. Most of these providers offer a completely digital and paperless process to make it highly convenient.

The Bottom Line

Remember to transfer credit card balance to bank account if you feel you can pay the outstanding amount within a few months. On the contrary, if the payment will take longer, like 2 years, opt for a personal loan. Go ahead with the process after considering all scenarios.

While credit card balance transfer can be complicated and not always the best option, Fi Money offers a better solution. Get the 5% Card, co-branded with Federal Bank, for accelerated rewards up to 5x and features like customised reminders, spend insights, and low forex fees. Plus, enjoy exclusive vouchers worth ₹5,000 as a welcome offer!

Frequently Asked Questions

1. What Is A Balance Transfer Credit Card, And How Does It Work?

A balance transfer credit card helps you pay outstanding credit card dues by shifting them to another account.

2. What Are the Benefits Of Using A Balance Transfer Credit Card To Pay Off My Debt?

These credit cards provide low-interest rates and payment flexibility to make debt payments convenient. They offer comprehensive support during the process.

3. How Do Balance Transfer Credit Cards Differ From Regular Credit Cards, And What Features Should I Look For In One?

Balance transfer cards usually have low-interest rates and less paperwork during application. On the other hand, standard credit cards have high-interest rates and may have complicated paperwork.

While searching for the balance transfer card, check the transfer limit and interest rates.

4. What Types of Debt Can I Transfer To A Balance Transfer Credit Card, And Are There Any Restrictions?

These cards can enable you to pay off credit card debt, student loan debt, home loan debt, auto loan debt and even medical bills.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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