One of the ways to settle a huge outstanding on your credit card is to opt for a balance transfer. It is a recommended option as it not only lowers your EMI but saves you from paying the additional rate on the card, as well. But, before getting started keep these important pointers in mind -
In order to be eligible for a credit card balance transfer you must have a good or an excellent credit. Where, recency and frequency of payments is take into consideration. And especially the recent missed dues can negatively affect your chances of being approved for a transfer. Even for a 0% introductory rate or approval for enough credit to have your balance transferred.
Additionally, most credit card balance transfers charge a fee and may even levy an annual fee on the credit card. Such costs and the time taken to clear off the outstanding dues on your credit card payment may negate any interest savings you may be eligible for with the balance transfer.
Most importantly as you are required to settle the outstanding within the promotional period of balance transfer offers failing which can lead to higher costs. Majorly due to higher post-promotional interest rates on the card.
As a cautionary measure, refrain from making any purchase on your credit card once the balance transfer process has been completed. The practice saves you from having the overall balance increased on your credit card and thereby from additional dues.
