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Balance Transfer Calculator
Calculate your savings with credit card balance transfer
₹
% p.a.
% p.a.
%
Months
Months
Total Savings
₹18,354
Effective Interest Rate: 5.96%
Transfer Fee
₹2,000
New Card Interest
₹3,955
Cost Comparison
New Cost: 24.5% Current Cost: 75.5%
Understanding Balance Transfer
A credit card balance transfer allows you to move your outstanding balance from one credit card to another, often at a lower interest rate. This can help reduce your interest costs and consolidate your debt.
Key Features:
- Lower interest rates (sometimes 0%) for an introductory period
- One-time balance transfer fee (typically 1-5%)
- Consolidate multiple card balances
- Fixed repayment timeline
- Potential for significant interest savings
Things to Consider:
- Balance transfer fee impact on total savings
- Length of promotional interest rate period
- Regular interest rate after promotional period
- Credit limit on new card
- Impact on credit score
Example Calculation:
For a balance of ₹2,00,000:
- Current Interest Rate: 36% p.a.
- New Card: 0% for 6 months, then 18%
- Transfer Fee: 2% (₹4,000)
- Total Savings: ₹32,000
- Effective Interest Rate: 12.5% p.a.
Important Note:
Balance transfer cards typically require good credit scores. Make sure to read the terms and conditions carefully, especially regarding the duration of promotional rates and any restrictions on transfers.