What is a balance transfer credit card?
A Balance Transfer credit card allows you to transfer your outstanding credit card debt balance of one bank to another bank’s credit card, banks promote these feature to attract new customers by offering 0% Intrest rates for shorter terms like 3 to 6 months or reduced interest rates with easy instalment plans till 36 months to clear off your debt.
Best Balance transfers credit cards are helpful when you want to transfer all your credit card balances and consolidate them into one credit card. This makes it easy for you to manage them without a hassle and saves you big in interest payments.
Here is the list of best balance transfer credit cards in UAE that you can hold.
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- Annual Fee: 1st year Annual Fee Waiver; AED 750 for the following years.
- Minimum Income Required: 15,000 AED
2. Commercial Bank of Dubai World MasterCard:
This CBD Credit Card promises to award a world of experiences and amazing opportunities for its customers. It offers various benefits such as airport lounge access, Chip & Pin protection, CBD rewards, balance transfer, and many more. The balance transfer facility on this credit card is available in two options- revolving and regular balance transfer.
- Annual Fee: 750 AED
- Minimum Income Required: 40,000 AED
3. Emirates NBD MasterCard Titanium Credit Card:
With the Emirates NBD Credit Card, you can take advantage of a host of benefits and features. These include airport lounge access, golf privileges, reward points, various discounts, and much more. It can be classified amongst the best balance transfer credit cards in the entire United Arab Emirates. There is a cancellation fee of three percent of the outstanding principal or 250 AED charged on balance transfers.
- Annual Fee: 400 AED
- Minimum Income Required: 5,000 AED
4. HSBC Advance Credit Card:
This HSBC Credit Card offers Air Mile Rewards, free HSBC Entertainer App, a huge range of lifestyle and travel benefits, which include airport lounge access, hotel discounts and more. You can avail the facility of balance transfer on this card at a rate of interest as low as zero percent.
- Annual Fee: Zero
- Minimum Income Required: 15,000 AED
5. Mashreq Platinum Elite Credit Card:
- The Mashreq Credit Card helps you in enjoying the advantages which include a wide range of benefits that compliment your lifestyle needs, be it shopping, travel, dining, sports, or adventure or any other leisure and entertainment options.
In addition to all these privileges, you can also enjoy hassle-free balance transfer as it includes features like purchase protection and extended warranty. There are fixed instalments with a maximum period of 36 months. The Mashreq Bank allows you to transfer a maximum of 75 percent of the available credit limit.
- Annual Fee: 650 AED
- Minimum Income Required: 10,000 AED
6. RAK Bank Red Credit Card:
You can pay less on all your shopping with the discounts on this RAKBank Credit Card. This free-for-life credit card (credit cards which have no annual fee) allows you to save time through the contactless technology. It lets you stay protected with features like travel accident insurance, purchase protection, credit shield and more.
It also lets you easily transfer money using RAKMoney Transfer. You can avail the balance transfer facility at zero per cent interest for the initial 3 months on the outstanding balance. Thereafter, it charges an interest rate of 3.19% per month. You will also be charged a processing fee of 1.95%.
- Annual Fee: Zero
- Finance Charge: 3.45% per month
Tips to keep in mind before making a balance transfer of a credit card
- Proper research: You must always begin your search for the best credit card for balance transfers with a lot of solid research. There are a lot of amazing deals on the market if you only know where to look. For instance, HSBC and Standard Chartered banks are offering a zero percent balance transfer for 6 months to selected customers who fulfil their eligibility criteria.
- Interest Rates: Your interest rates are the most important and the most crucial aspect of your credit card. Not every card is created equal. The rate of interest in every credit card is different and hence you need to read the fine print carefully before you sign up for the credit card. Balance transfers also carry a nominal fee charged by the bank on all transfers. Make sure that you look at these interests as well to not be surprised when they are charged to your account and are reflected in your monthly account statement.
- Read the fine print: In order to simplify the situation, it is better to read the fine print before you sign up for any credit card. Do not sign on the application form or anywhere else unless you read all the terms and conditions and know exactly what it is you’re signing up for. Reading the terms and conditions on the fine print of every feature and benefits offered by the balance transfer facility is very important for you as a customer.
Is it a good idea to do a balance transfer on a credit card?
Yes, It is definitely a good idea to transfer your outstanding balances on which you pay high interest every month to a Zero percent or low-cost instalment option to clear off your debt.
How does a balance transfer credit card work?
Its the same credit card with a feature of transferring your high interest outstanding to low-interest instalments, in simple words, A balance transfer is when you repay existing outstanding credit card debt with a new credit card