Outlook Money
A Credit card is generally used to make easy transactions and to manage expenses on credit. Many users also use credit cards to easily fulfill all their daily needs.
Credit card users face a situation where they have to transfer their outstanding balances from one card to another. This type of practice comes under the category of Credit Card Balance Transfer.
This process usually sees the user transferring the outstanding amount from a high-interest rate credit card to a new credit card with a lower interest rate or better repayment terms. By doing this, credit card users can potentially save money on interest payments and also streamline their debt repayment strategy.
Many banks and financial institutions offer balance transfer facilities to their credit card users. Availability and conditions for this may vary in different financial institutions so, one should get information about the special service 'balance transfer' policy of the credit card issuing bank or financial institutions and the charges related to it.
The first step to initiate the transfer is to apply for a new credit card which upon approval can be used for the transfer. By doing this the bank settles the outstanding amount with the previous credit card issuer and then effectively transfer the debt to the new card.
It is important to keep in mind that processing fees or other fees may be imposed by the new credit card provider for the convenience of balance transfer. In such a situation, one should carefully understand these charges so that money can be saved.