Balance Transfer In Credit Cards For Better Repayment Rates

Credit cards have become an accepted method of payment for a very long time, and almost every part of the world now have access to credit cards. There’s a major downside of using credit cards, you don’t really track the monthly expenditure and can fall in debt, especially if the interest rate on your credit card is significantly higher. However, transferring balance between a high interest credit card and a low interest credit card could be the money-saving way of lowering the debt, however there are certain methods of doing so. A simple balance transfer of credit cards won’t simply help.

  • Transferring and Repaying are Different:


Using a low interest credit card to pay off the debts on a high interest credit card will certainly save some money, but in the end it’s not interest free at all. Most credit cards incur a variety of interest range for different type of transactions, and the credit card holder needs to assess the payments before making such a transfer. In most cases, the saved money amount might be a little different.

  • Simplifying Repayment:

Balance transfer on credit cards could actually make the management of your finance a lot easier. If you happen to make a lot of transaction on multiple credit cards and then tend to forget about the amount, interest rates and repayment dates, you should move all the balance to one single card with lowest interest rate – so that you only have to repay the debt on a single card, and the interest rate is comparatively lower as well.

  • Repayment for other purchases:

Balance transfer on credit cards could be used for repaying installments for property purchase, bank loans etc. Using a no-interest or low interest card for this purpose will sum up in lesser repayment debt, and managing one single card would make life easier.

  • However, look out for fees:


Balance transferring between credit cards aren’t really free. Some banks incur crazy high transfer rate and some incur low. The current trend is implicating a specific amount, say 3% of the transferred amount. If you are to transfer $5000 from one card to another, there would be a transfer charge of $150.

  • The rates change:

Apparently, the transfer rate percentage doesn’t always remain the same. It might increase to a greater amount if lagged for 6 or more months, and sum up to an even bigger amount. Most people try to escape from higher interest rates but lagging repayment on transfer cards would be a bad decision


As it appears, the matter of transferring between credit cards isn’t all that simple. If very large amount of monetary transaction is involved, you might want to ask your financial counselor.

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