Overspending or emergency financial situations can lead to credit card holders accumulating significant debt. In such cases, paying the total bill at the end of the month can become troublesome. While paying the minimum due will lower ones credit score, not paying at all can lead to high finance charges and late payment fees.
It is under such circumstances that customers can opt for features like balance transfer, though only exclusive few financial institutions and NBFCs offer this special feature.
Balance transfer credit cards are financial products which enable a customer to transfer their outstanding balance from one financial institution to another. Generally done to repay outstanding debts over a more convenient tenor and with lower interest, any individual can simply choose to transfer their credit card accounts simply to avail better features. Usually, balance transfer includes a processing fee, though apart from that, other expenses typically include a very low or even zero rate of interest levied on the outstanding debt.
Bajaj Finserv Credit Card and its likes are the few credit cards on offer by NBFCs in India which allow balance transfer options. It is vital for interested customers to know the basic features and benefits offered by these credit cards before they opt to transfer their accounts.
Along with balance transfer itself, make sure the product you opt for also has the following features –
- EMI conversion: Credit cards often offer extravagant features like options to clear the cost of a high-value purchase going over Rs. 3,000 with slow EMIs over the months. This allows customers to spend on necessities even if they are costly while the repayment does not affect them as a huge financial burden.
- Personal loan options: Bajaj Finserv Credit Card and its likes even offer the option to withdraw amounts up to the available credit limit as a personal loan. This is especially helpful in case an individual has to avail credit for emergency personal expenses.
Typically, NBFCs offer 90 days’ time limit to fulfil the loan with zero interest and via 3 EMIs.
- Cash withdrawal via ATMs: Of the numerous reasons individuals are smarter with a credit card in their pocket, a vital one offered is that of cash withdrawal from ATMs. This ensures customers can have access to easy cash; additionally, financial institutions also do not charge any interest on the money repaid within the first 50 days.
- Partnered stores and brands: Financial institutions and NBFCs offering credit cards have tie-ups with different lifestyle stores and brands. Consequently, credit card holders can shop from these stores and avail exclusive discounts and offers.
- Rewards and related benefits: Credit cards provide reward points which can be redeemed for gift vouchers, cashbacks, discounts, etc. It is important that customers learn how to redeem credit card reward points to avail discounts of future expenditures.
Some credit cards also provide the feature of converting reward points into cash. In such cases, cardholders can avail discounts on their monthly statement.
- Secure transactions: From personal details to passwords and CVV, credit cards have numerous security barriers to prevent malpractice and misuse even if displaced. Some credit card companies provide features like in-hand security and fraud liability cover with their balance transfer credit card.
Along with the above basic features offered by credit cards with options to transfer balance, customers are especially assured of convenience in application procedure.
Products like the Bajaj Finserv RBL Bank SuperCard have minimal document requirements, making the application process more convenient for their applicants.
With numerous NBFCs offering credit cards for balance transfer, it is vital that customers check all details pertaining to interest rates and procedural fees before applying for one.
The overall expenses including debt payment must effectively be less than their earlier account. Further, the new payment method should be strictly maintained as per schedule to avoid any future hassles.