1. News to use: Here’s how to avoid paying interest on credit card dues

News to use: Here’s how to avoid paying interest on credit card dues

One can avoid paying the interest by using the balance transfer facility of another credit card.

By: | Published: September 7, 2016 6:01 AM

If you do not pay the full credit card dues, the bank will charge interest at a rate of 2-3% a month on the unpaid amount. However, one can avoid paying the interest by using the balance transfer facility of another credit card. Here’s what you should keep in mind:

  • If one is unable to pay off the whole amount by the next bill’s due date, the interest would keep mounting on the outstanding amount.
  • By transferring the balance to another credit card, one gets a three-month interest-free period to pay off the amount.
  • Balance transfer is a good option in cases where one is unable to pay back the full amount due on your primary credit card.
  • It can help one save a lot of interest cost if one can complete the transfer ahead of the bill due date.
  • The credit card that you are planning to transfer balance must have higher credit limit.
  • The card user must have a good credit history to avail this facility.
  • The balance transfer will offer an additional two-three months during which one can pay the outstanding balance without any interest.
  • The bank will process the balance transfer by either issuing a demand draft or bank transfer for an amount equal to the balance being transferred.
  • The interest charged by the new bank on the balance transferred could be much lower than that charged on the earlier credit card.
  • Balance transfer allows the customer to transfer even those outstanding amounts that have been converted to EMI or convert a lump sum outstanding into EMI.
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