Does transferring debt to from one credit card to another really help?


There are several features about credit cards we all may not be aware about. For example, did you know that if have some balance on your credit card, you can transfer it to another credit card? You can even transfer debt from one credit card to another. Here is what you need to know about this feature.

The benefits

  • If you transfer your balance from one credit card to another which has lower interest rates to pay, it will surely benefit you.
  • If the credit card you are using does not meet your needs or is providing faulty service, you can transfer the balance to a new card.
  • The transfer will benefit you only if the new card offers you better services and a lower interest rate requirement than the existing card.

Interest rate for balance transfer

You have to entirely understand the system of interest rates for transferring your balance to a new credit card. Most of the banks offer you a low interest rate for balance transfer to a new credit card. There are few banks that do not charge any interest rate. However, these facilities are applicable for the first few months only. After a certain period of three to five months, the new credit card will charge you the same interest rate as the previous credit card.   

Credit limit

When you transfer balance from one credit card to another, the credit limit of the new card goes down by the same amount of the money transferred. You must always remember this fact and transfer accordingly. You have to ensure that the transferred amount remains less than 80% of the new credit card’s credit limit.

Using the card wisely

Once you transfer the balance from one credit card to another, you get a three to four month period of using the new credit card with low or zero interest rate. You must use this period wisely as you should not go overboard with purchasing. Be wise and use the credit card for purchasing only costly but important things.

The penalty interest rates never change so you will have to pay the same penalty charges if you delay the outstanding payments. Use the facilities wisely to get maximum benefit.



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