Factors to keep in mind when opting for balance transfer

1)  Cardholder's should know that only 75% to 80% of the balance on an existing card is the maximum amount that is allowed to be transferred.

2)  Remember that, on availing the balance transfer facility, the credit limit of the existing card also gets reduced.

3)  For every balance transfer transaction, a processing fee of around 2 percent is charged on the amount being transferred.

4)  Since the entire process takes about 7 to 10 days, customers should make sure that no payment is missed on the old card during this period. Any default during this time will have an adverse effect on their credit score.

5)  To enjoy the maximum benefit of balance transfer facility, customers should pay off all dues within the promotional interest rate period.

6)  Credit card issuers prefer to provide balance transfer facility to those cardholders who have been associated with a single credit card company for at least one year.

7)  Purchases made on the new card will not be covered under the lower or zero interest rates, which is applicable on the balance transfer amount.

Some Credit Cards offering balance transfer facility

• All credit cards offered by State Bank of India provide the facility of balance transfer at lower interest rates. Some examples include the Spice Jet SBI Card, SBI Gold and More card and SBI Platinum card.
• HSBC Bank also provides this feature on all its credit cards and charges just 1.25% to 1.65% interest on the transferred balance.
• The Kotak Mahindra Aqua Gold Card and Axis Bank Platinum Advantage Credit Card extend this facility at 0% rate of interest.
• Other balance transfer credit cards are Standard Chartered Breeze Banking Card and Citibank Silver Credit Card.