A Credit Card makes life easy with funds available at your fingertips, you tend to spend without one because you will have to make the payments later. But nothing comes for free, and your Credit Card Bill will be presented to you at the end of the 30-day cycle. A further 15-day grace period is given for the payment of the bill if there is a budgetary constraint, it is mandatory to pay 5% of the total, and the balance is carried forward to the next cycle. The deferred payment costs 36% per annum, which is the interest to be paid on the total bill until the pending amount is cleared.

What are the Options Available to Avoid the Excessive Interest?

• An easy getaway is to start using an alternate card. However, the choice may not be the best, as the debts increase again.
• Application loans are readily available to pay back the bill keep in mind that the interest rate for an App loan is on the higher end, and with a tenure restriction, the monthly EMI is steep.
• Applying for a Balance Transfer of your Credit Card dues to a Personal Loan is the answer, as the interest rate on a Personal Loan is reasonable, and the loan can be paid back in suitable instalments.

What is the Right Time to Apply for Transferring Your Credit Card Dues to a Personal Loan?

Extensive Usage: Suppose you have used your Credit Card extensively and need the amount available for repayment. In that case, you can consider postponing the payment over one cycle with the condition that you don’t use your card till the payment is done and will have the funds available to clear the bill. If in doubt, do not wait to Apply for a Balance Transfer.

Limited is Exhausted: Further usage is not advisable if you have used the credit up to 80% of the designated card limit. Also, the interest applied to the unpaid credit is added to the pending dues, increasing the debt further. Rather than wait for the dues to build up, consolidate your debt by applying to transfer your credit card dues to a personal loan.

Budgetary Constraints: If your budget is constrained due to an emergency, take care of your credit outstanding by Applying for a Balance Transfer to a Personal Loan. When you do not have the resources to manage your finances, debts can get out of hand. Take timely action so that your CIBIL Score does not get downgraded.

What are the Eligibility Criteria for Transferring Your Credit Card Dues to a Personal Loan?

Bank Policy: Prominent Banks that offer to convert your credit card dues to a Personal Loan via a Balance Transfer include HDFC Bank, Kotak Bank, AXIS Bank, and AXIS Finance. While each Bank has its eligibility criteria, the applicant must meet the basic norms and criteria required, such as:

• Regular monthly salary transfer,
• Employment in a company included in the bank’s approved company category list,
• A CIBIL Score of above 720 points.

Status of the Credit Card or Cards: For the dues of a credit card to be eligible for a Balance transfer, the following criteria need to be fulfilled:

• There should be no negative remark on the credit card statement for the last three months, such as an Overlimit fee or late payment charges.
• The minimum amount due, 5% of the total bill, must be paid month-on-month.
• The total outstanding amount of credit cards must not exceed four times the monthly salary.

Financial Eligibility: The applicant’s income must sufficiently pay for the extra EMI after the monthly expenditures.

• The total outstanding other credit, including all the personal loans, mortgages and existing credit card balances, is considered.
• To increase financial eligibility, the applicant can Apply for a Balance Transfer, existing personal loans, and a credit card.
• An applicant can check the applicable EMI with our EMI Calculator to work out a comfortable EMI before Applying for a Balance Transfer.

How does a Credit Card Balance Transfer to a Personal Loan Work?

• Excess bill of a Credit Card payment stressing you out? Apply for the Balance Transfer of your Credit Card dues well in time before the due date.
• To apply, submit the requisite documents and the last three statements from the Credit Card for Balance Transfer.
• The application is processed according to the regular norms for a personal loan application, which include the CIBIL check and verification.
• The Bank’s underwriter will check all the inputs and the customer’s financial eligibility to pay a suitable EMI after the Balance transfer.
• If the request is approved, the customer agrees with the loan’s details, terms, and conditions.
• A pay order is made for the outstanding Credit Card dues and handed to the customer.
• The customer deposits the pay order against the Credit Card account and repays the Personal Loan via an EMI over a suitable tenure.

What are the Advantages of a Credit Card Balance Transfer to a Personal Loan?

The payment of your Credit Card dues via a Personal Loan Balance Transfer is a win-win situation outlined below are the primary benefits:

• Interest Rate: The Personal Loan Interest Rate is most reasonable compared to the charges for Credit Card Dues, which are 36% per annum, compared to the Personal Loan Interest Rate, which ranges from 10.75% to 16% per annum.
• Financial Relief: By transferring your Credit Card Dues, you no longer have to worry about the inflated charges for your delayed payments. You can repay the amount with convenient EMI, which gives immense financial ease.
• CIBIL Score: With delayed Credit Card payments, your CIBIL Score can take a hit. Don’t wait for your score to be affected. Apply for a Balance Transfer, make timely payments, and revamp your score.

An excessive debt situation can ruin your peace of mind, so avoid getting into a stressful situation. There is help at hand an external Bank is ready to take over the Credit Card Debt.

The Balance Transfer of Credit Card dues helps you better manage your finances and enables your Credit Card to be used for further use. You can start using your Credit Card again, but most importantly, do remember to use your Credit Card mindfully and spend what you can repay on the date your payment is due to enjoy the many benefits.

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