Credit cards can be a lifesaver when used correctly, providing savings and numerous perks. One useful feature offered by some credit cards is balance transfer. This allows you to pay off your dues on another credit card without facing hefty penalties or high-interest rates. Let’s explore the top 4 credit cards that provide the best balance transfer options with minimal charges.
What is a Balance Transfer?
A balance transfer lets you shift your outstanding balance from one credit card to another. This can save you from high-interest charges, which typically range from 36% to 48% annually if you miss payments. While balance transfer helps lower your financial burden, there are some fees involved, such as processing fees, which vary by card.
Best Credit Cards for Balance Transfer
SBI Credit Card
SBI offers two balance transfer schemes. The first scheme charges a 2% flat processing fee and allows you to repay within 60 days without interest. The second scheme offers a 6-month repayment period with a monthly interest rate of 1.7%. You can easily apply for this through their online portal or by contacting customer care. Cards like SBI Elite, SBI Octane, and SBI Club Vistara offer this feature.
RBL Bank Credit Card
RBL Bank provides an attractive balance transfer option with a processing fee of 2.99%, offering a 3-month repayment period. This facility is available across all their credit cards, making it a flexible option for cardholders looking for short-term relief from high-interest rates.
Kotak Mahindra Credit Card
Kotak Mahindra offers balance transfer with no interest charges. The only cost you incur is a processing fee, making it a cost-effective choice. You can transfer up to 75% of your credit limit, and the processing fee is Rs. 349 on the transferred amount, which is significantly lower compared to other banks.
ICICI Bank Credit Card
ICICI Bank allows balance transfers with a minimum transfer limit of Rs. 15,000 and a maximum of Rs. 3 lakh. This facility provides significant flexibility for those with high outstanding balances. However, you need to have an ICICI credit card to avail of this option.
Final Note:
While balance transfers are a smart way to avoid high interest, make sure to account for the processing fees and transfer conditions to maximize savings.
