Credit cards help us to make urgent payments and meet daily expenses. We can use a credit card for multiple reasons throughout the billing cycle. At the end of the billing cycle, we repay the credit card bill amount to avoid interest charges. Since you don’t have to repay the credit card issuer immediately, it offers flexibility. Also, there is no compulsion that a user can use only one credit card. You can use multiple credit cards for your financial needs in India. People that use multiple credit cards often go for the balance transfer option. Balance transfer makes credit card bill payment easier for people using multiple cards. Read on to know more about balance transfer on EMI for credit cards in India.
Understanding balance transfer on EMI
If you are using multiple credit cards, you have to pay multiple bills in a month. You have to return the credit used from each credit card to the respective issuer. For each credit card, you may have a different interest rate and billing structure. You can also use multiple credit cards from the same issuer in India. Users with multiple credit cards often find it hard to pay the bills timely. They might miss one or two credit card bills in the month. As a result, their credit score will take a hit due to non-payment of credit card bills.
The balance transfer system allows users credit card users to transfer all the outstanding bills on credit cards to some other issuer. For example, consider you have outstanding credit card payments from three issuers. You choose a fourth credit card issuer and transfer all your outstanding balance to the new issuer. The best part about balance transfer is you have to pay the outstanding bills in small EMIs. By doing so, you can complete the pending payments without hampering your credit score. Many banks in India offer balance transfers on EMI to credit card users. It is better to accumulate your credit card bills in one place. A balance transfer lets you accumulate all your outstanding payments in one place for easy repayment.
Why one should go for a balance transfer on EMI?
For balance transfer on EMI, banks offer a low-interest fee to help credit cards users. There is no point in paying more interest rates when you discover a bank that offers credit at a lower interest rate. It is better to choose a credit card EMI structure with a lower interest rate. Users with multiple credit cards have to pay interest charges to multiple issuers. With a balance transfer, you will have to pay interest charges to only one issuer.
You may have to meet several financial obligations, but multiple credit card bills may stop you. It is better to convert your outstanding credit card payments to a reliable issuer. By doing so, you only have to pay a small amount of money every billing cycle. You can meet the urgent financial obligations first by opting for a balance transfer on EMI. Not to forget, you don’t have to go through multiple bill payments in the same billing cycle. Balance transfer on EMI simplifies the payment process as you have to pay once every installment.
Things to know before opting for a balance transfer on EMI
Some things one should know before opting for a balance transfer on EMI in India are as follows:
• Impact on credit score
There are instances where a balance transfer may hurt your credit score temporarily. It is because the credit score also depends on the credit card’s longevity. However, it is not a fact that your credit score will come down after a balance transfer. Even if your credit score comes down after balance transfer, you can regain it by making EMI payments timely. If you don’t opt for a balance transfer and your outstanding balance keeps on increasing, your credit score will eventually go down. It is better to choose a balance transfer on EMI for clearing your outstanding balance and regain your credit score.
• Consider the balance transfer fee and interest charges
Most banks charge a balance transfer fee from credit card users. One can compare the balance transfer fee of different issuers and choose accordingly. You also need to compare the interest charges before opting for a balance transfer on EMI. Choose a reliable credit card issuer that offers a balance transfer facility at a lower interest rate.
• Consider the introductory rate
Many banks offer a balance transfer facility at a lower interest rate for a few months only. After the grace period, the interest charges go up for the user. Make sure you consider the introductory rate while opting for a balance transfer.
Even if you succeed in transferring your outstanding balance to one place, don’t stop making payments. Timely payments always lead to better credit scores. Choose balance transfer on EMI now!