Balance transfer is a feature of your credit card that lets you transfer your outstanding balance from one card to another. This "consolidation" of balances is supposed to help you better manage your finances. Here's how:
Benefits of a balance transfer
Combine your payments into one credit card. A balance transfer can make paying your debt easier, simpler and more convenient with only one due date to think about.
Get out of debt faster. Balance transfer is usually offered with lower interest fees under a fixed repayment term of 12, 24 or 36 months. This lets you save on interest charges on revolving balances and help you pay it off faster.
Transfer to a credit card with better benefits. These can be longer payment terms, smaller fees, promotional incentives, or other benefits that fit your needs.
Before you apply for a balance transfer
Approval will depend on your credit score. A balance transfer may not available for everyone; this is why it's important to have a good credit standing with your bank.
Check your credit limit. Make sure that you have enough credit limit on your credit card to accommodate your other cards' balances.
There's a fee. Banks charge a transaction fee for every successful balance transfer application, and there's also a pre-termination fee should you decide to cancel your balance transfer before the end of your repayment period.
Make sure to pay on time. Avoid missing payments or paying below your due amount as you'll still be charged with interest or late payment fees.
How to apply for a balance transfer
Apply for a balance transfer with your HSBC Credit Card here.