A credit card is one of the best products offered by the banking and finance sector. The instant availability of money offered alongside the freedom of usage and ‘use now and pay later’ advantage makes it one of the best tools for daily life transactions. However, misusing it or not managing it properly can cause many problems - damaging your CIBIL score is one of them. Thus, it is wise to pay the outstanding balance before the due date or opt for balance transfer. YES! Balance transfer. Not many know about it but credit cards come with balance transfer facility which can be used whenever the user is not in a position to pay the outstanding balance at once.
If you lack the knowledge about when and how to use the balance transfer facility, keep reading the article.
Should you consider credit card balance transfer
Whether or not to use the facility depends on the situation. The real question is, is it required and is it fruitful? The fact is, even if you opt for a balance transfer, you’ll have to pay the outstanding balance. Thus, whenever you feel stuck on the horns of a dilemma - whether to opt for credit card balance transfer, ask yourself a question - is it helping you in any way?
Credit card balance transfer is apt for such customers who carry a higher debt on their credit cards and are in no position to repay it immediately. The can pay the minimum due amount and transfer the rest into another card offering a lower interest rate. This will save you a lot of money and protect your CIBIL score from being affected.
On a concluding note, avoid overusing this facility to avoid the consequences.
Read More :- When Should You Consider Transferring Credit Card Balances?
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.