Balance Transfer Credit Cards

Balance Transfer Credit Cards

A balance transfer can help the cardholder to pay off the balance amount on an existing card by transferring it to another card. Balance transfer credit cards are becoming increasingly popular in the UAE.  A credit card balance transfer can help save a lot on higher interest rates to pay off the debt with ease.

Many credit card providers offer a low or 0% introductory APR (Annual Percentage Rate). Noteworthy here is that APR rate can come up to 48% after the introductory rate of APR is no longer valid. Suppose an applicant owes a high amount to the credit card issuer with a 21% APR. In that case, what would be the wise thing to do? It is simple, they can transfer the debt to a credit card with a low or 0 % APR and save a lot on interest. It is a quite viable way of paying off debt. Most balance transfer credit cards in UAE come with a plethora of benefits such as interest-free period, loyalty points, low-interest rates etc.

The credit cardholders who wish to pay off the balance on existing cards can opt for a fresh credit card and avail the benefit of balance transfer in the duration of 5-7 working days. Debt management has become easier with balance transfer credit cards in the UAE. It goes without saying that best credit cards always come in handy whether the applicant wants to build their savings/ good credit or is planning to avail amazing discounts and offers. If for some reason, if the card holder has gotten into financial crunch and has to pay interest charges, they can opt for best balance transfer cards.

Features and Benefits of Balance Transfer Credit Card

A zero percent balance transfer credit card provides great options for those who do not want to pay any interest on purchases for a pre-decided duration of time. The cardholder can transfer their balance from an existing credit card, (on which they might be paying high-interest rates) to the credit card with better APR rates without paying any financial charge for six months or more.

Here are the features and benefits of the balance transfer credit card:

a. Low Rate of Interest- If the cardholder has a credit card with a high-interest rate, opting for a credit card with a low rate of interest is a wise move. Transferring high-interest debt from existing credit card to a card with a significantly lower interest rate will enable them to pay off the debt. Since they will have to pay a much lower rate of interest (perhaps no finance charges as well), their monthly credit card expenses will contribute to paying the outstanding balance of their credit card, and not interest.

b. Pay Low Charges- It is easy to transfer the balance to a new credit card with the one that offers better benefits. If the cardholder’s existing card has a bad history in terms of high fees or low grace period, they can transfer their balance to a better credit card for the good. The new credit card may even offer promotional rewards on making new purchases.

c. Low APR- Transferring balance to the card with a low balance transfer APR can help the cardholder save a lot on their existing debt. The reason is that they can get a low or 0% introductory APR to pay off the balance within a stipulated time frame.

Balance Transfer Credit Card Card Eligibility

The eligibility criteria for balance transfer are similar to any other credit card. Mainly, it takes the current credit health and repayment capacity of the applicant into consideration. Listed below are the details about balance transfer credit card eligibility.

Credit Score and History

The credit card usage patterns and habits speak volume about the credit card member. Based on that, the credit card issuer determines whether the applicant can get a new credit card or not. The credit card provider takes into account various factors such as credit history, on-time payments, or loan default (if any). The issuer considers these factors to determine the repaying capacity of the cardholder.

What makes a good score?

The process of getting a good credit rating is not as complicated as it may seem. Here is what makes a good credit score.

 

Credit Rating

Score

Excellent

720-850

Good

680-719

Fair

620-679

Poor

300-619

 

Please Note: This table is merely a visual representation and does not vouch for the accuracy of the data.

Why is Credit Score Important?

The better the applicant scores in terms of ratings and repayment, the more credit limit a credit card provider will be willing to offer. Higher credit ratings imply that the applicant is eligible for a higher credit limit and lower interest rate.

The amount the applicant owes on their existing card account is another important factor that issuers consider. In case the applicant owes a large amount of money, it will be essential for the applicant to maintain a good credit score to become eligible to avail the balance transfer credit card.

Type of Debt

The type of borrowed debt is yet another factor to determine the ability to use the transfer of credit facility. If the applicant has a student loan with low interest and low payment, it makes sense to opt for the balance transfer credit card than maxing out on the existing card limits. Carrying different types of debt is a reflection of the spending habits of the applicant.

Bad Habit

The debt payoff process using balance transfer credit cards only works if the applicant refrains from taking any additional debt on their new card. In case of any additional purchase, if the applicant does not repay the outstanding bill by the due date, they will be charged a high interest rate. As experts say, it is easy to change the card, not habits, so be extra careful.

Also, the applicant should make it a point to pay the minimum 5 percent of their outstanding credit balance every month. Failing to do so could lead to lapse of the balance transfer terms and they may have to pay the standard interest rate on the due balance (if any).

Debt to Income Ratio

This ratio is a comparison between the total amount the applicant needs to pay and the total amount at their disposal. It gives an indication to the issuer about the applicant’s capability to pay off the debt.

Debt-to-income ratio= Debt / Income

Let’s say, if the applicant has to pay off a monthly payment of AED 1200 and their monthly income is AED 4000, their debt-to-income ratio would look like this:

1200 / 4000 = 0.3

The answer 0.3 means that 30 %- or one-third of your income goes toward debt payment.

Income

If the applicant’s interest payments are higher than their income regardless of having a low debt balance, it is still a matter of concern. As a matter of fact, issuers may consider this as it affects the applicant’s ability to repay their debt with the new balance transfer credit card.

How to Apply for Balance Transfer Credit Card in the UAE?

It is quite easy to apply for a credit card balance transfer. Here are the steps the applicant needs to follow:

  1. Look for a credit card issuer which offers a significantly lower interest rate than the existing card.
  2. Find all the relevant details including the processing fee.
  3. Get the required application form from the issuer/bank.
  4. Fill all the necessary details including the credit limit.
  5. Get the application form from the bank/financial institution
  6. Fill the application form by providing the required details such as credit limit, expiry date, unpaid amount of the existing credit card and the credit card number etc.
  7. Attach the required documents such as previous month’s payment records, address poof, and copied documents of the credit card.

Top UAE Banks that offer Balance Transfer Credit Card

Listed below are top UAE banks that offer balance transfer credit card:

Note- This list is in no particular order.

Citi Simplicity Credit Card                                           

Here are the benefits of Citi Simplicity Credit Card:          

  1. No annual membership is charged.
  2. No late fee and cash advance fee is charged.
  3. No over limit fee is charged.
  4. It provides unlimited lounge access for selected airports lounge across the UAE.
  5. It provides various Buy One Get One offers across hotels, spas, dining, leisure & entertainment.

Citi Rewards Credit Card

Here are the benefits of the Citi Rewards Credit Card:   

  1. It provides unlimited access to more than 750 airport lounges across the globe for primary as well as supplementary
  2. It provides Buy One Get One offer with VOX cinemas on a monthly basis for tickets booked online.
  3. It offers complimentary travel insurance along with purchase protection.
  4. It provides fine dining options at more than 500 restaurants in the UAE.
  5. It offers exclusive offers such as 0 Percent Payment Plans.
  6. It provides various services such as Citibank Alerts (Free), Citibank Privileges etc.

Citi Prestige Credit Card

Here are the benefits of Citi Rewards Credit Card:           

  1. It offers free access to more than 750 lounges across the globe.
  2. It offers free movie tickets at VOX Cinemas.
  3. It offers Citi Prestige Global Concierge assistance round-the-clock across the world.
  4. It offers complimentary golf benefits at some of the leading golf courses in the UAE on a monthly basis.
  5. It offers complimentary Marhaba Silver Meet & Greet service (twice a year) at Dubai International Airport.
  6. It offers unlimited free supplementary cards.
  7. It offers travel insurance and Purchase Protection as complimentary service.

Citi Premier Credit Card

Here are the benefits off Citi Premier Credit Card:           

  1. It offers complimentary golf benefits at some of the leading golf courses in the UAE on a monthly basis.
  2. It offers discounts at hotels, shops, and restaurants.
  3. It offers unlimited access to over 750 airport lounges globally for card members (primary and supplementary), and 1 guest each.
  4. It offers 4-movie tickets (Buy One Get One) with VOX cinemas on a monthly basis.
  5. It offers complimentary travel insurance and purchase protection.
  6. It provides fine dining options at more than 500 restaurants in the UAE.
  7. It provides complimentary Marhaba Bronze Meet & Greet service on a yearly basis at Dubai International Airport.
  8. It offers complimentary Golf benefits at some of the leading golf courses in the UAE on a monthly basis to primary as well as Supplementary card members.

Emirates Citibank Ultima Credit Card

Here are the benefits Emirates Citibank Ultima Credit Card:

  1. It offers 25,000 Sign-up points as Skywards Miles as a sign-up
  2. It offers 10,000 bonus miles on annual card renewal.
  3. It offers up to 2.5 Skywards Miles for every dollar spent at retail transactions.
  4. It offers privileges and benefits like complimentary Skywards Silver Membership.
  5. It offers complimentary unlimited access to over 500 airport lounges globally.
  6. It offers complimentary unlimited free golf benefits and international concierge service.
  7. It offers complimentary Marhaba Silver Meet & Greet
  8. It offers Buy One Get One offer on movie tickets at VOX Cinemas.
  9. It offers 0% interest for 3 months EMI plan on Emirates tickets.
  10. It offers complimentary travel medical insurance.

Citibank Emirates World Credit Card

Here are the benefits offered by Emirates Citibank World Credit Card:

  1. It offers complimentary unlimited access to over 750 airport lounges globally.
  2. It offers Buy One Get One offer on movie tickets at VOX cinemas on a monthly basis.
  3. It offers complimentary Marhaba Silver Meet & Greet service on a yearly basis at Dubai International Airport.
  4. It offers 0% interest for 3 months EMI plan on Emirates tickets.
  5. It offers complimentary travel medical insurance.
  6. It offers free supplementary cards.
  7. It offers discounts and 0% payment plans.
  8. It offers a plethora of offers through Citibank World Privileges.

Citibank Emirates Ultimate Credit Card

Here are the benefits offered by Emirates Ultimate Credit Card:

  1. It offers unlimited access to over 750 airport lounges globally to primary as well as and supplementary card member and1 guest each.
  2. It offers Buy One Get One offer on 4 movie tickets at VOX cinemas on a monthly basis.
  3. It offers complimentary golf benefits at some of the leading golf courses in the UAE on a monthly basis.
  4. It offers complimentary Marhaba Silver Meet & Greet service on a yearly basis at Dubai International Airport.
  5. It offers 0% interest for 3 months EMI plan on Emirates tickets.
  6. It offers complimentary travel insurance and international concierge service.
  7. It offers unlimited free supplementary cards.
  8. It offers 0% payment plans.
  9. It offers a multitude of benefits through Citibank World Privileges. 

Commercial Bank of Dubai

The CBD credit cards come with plenty of benefits that help the cardholder live a life full of privileges. Using these cards, they can enjoy benefits like travel insurance, purchase protection, international concierge services and more. There are reward points and cash back for every purchase which can be redeemed for dining, shopping, and travel booking among others.

Listed below are some of the CBD cards that offer balance transfer facility:

Commercial Bank of Dubai Visa Platinum Card

Here are the benefits of Commercial Bank of Dubai Visa Platinum Card.

  1. It offers a 50% discount on movie tickets at VOX cinemas across the UAE. The offer is applicable only for Saturday shows.
  2. It offers Airport Dining Discount with DragonPass.
  3. It offers 0 percent balance transfer offers.
  4. It offers Easy Installment Plan at 0% for up to 12 months.
  5. It offers Agoda Coupons and Offers. 

Commercial Bank of Dubai Visa Signature Credit Card

Here are the benefits of Commercial Bank of Dubai Visa Signature Credit Card:

  1. It offers a 50% discount on movie tickets at VOX cinemas any time of the week.
  2. It offers Valtrans Valet Parking.
  3. It offers unlimited complimentary access to VIP airport lounges worldwide.
  4. It offers Airport Dining Discount with DragonPass.
  5. It offers Agoda coupons and offers.
  6. It offers a 0% balance transfer offers.

Commercial Bank of Dubai World MasterCard

Here are the benefits of Commercial Bank of Dubai World MasterCard:

  1. It offers a 50% discount on movie tickets at VOX cinemas any time of the week.
  2. It offers Valtrans Valet Parking.
  3. It offers unlimited complimentary access to VIP airport lounges around the world.
  4. It offers complimentary access to Pharaohs' Club. 

Commercial Bank of Dubai Titanium Mastercard

Here are the benefits of Commercial Bank of Dubai Titanium Mastercard:

  1. It offers a free supplementary card for the family.
  2. It doesn’t charge any annual fees.
  3. It offers Attijari Points Rewards Program which enables the cardholder to earn up to 1.5 points for every dirham spent.
  4. It offers Complimentary access to 10 plus VIP lounges in KSA, UAE, Jordan, Egypt, and Kuwait.
  5. It offers up to 20 percent discounts thrice a month for Careem rides.
  6. It offers a plethora of benefits across categories such as hospitality, travel, wellness, dining, and lifestyle.

Commercial Bank of Dubai Visa Infinite Credit Card

Here are the benefits of Commercial Bank of Dubai Visa Infinite Credit Card:

  1. It offers a 50% discount on movie tickets at VOX cinemas any time of the week.
  2. It offers Valtrans Valet Parking service.
  3. It offers unlimited complimentary access to VIP airport lounges worldwide.
  4. It offers Agoda coupons and offers.
  5. It offers complimentary access to Pharaohs' Club.
  6. It offers Airport Dining Discount with DragonPass.

Commercial Bank of Dubai Super Saver

Here are the benefits of Commercial Bank of Dubai Super Saver:

  1. It doesn’t charge any annual fees for the first year.
  2. It offers 10% cashback on the daily retail spend.
  3. It offers 1% cashback for every AED 2 spend on all other purchases.
  4. It offers free Valtrans valet parking twice every month at select locations.
  5. It offers up to 50% discount on movie tickets at VOX cinema across the UAE.

How to Find the Best Balance Transfer Credit Card?

Here are the tips that will help to find the best balance transfer credit card:

  1. Before selecting a balance transfer card, it is important to read the fine print of the selected credit card.
  2. The applicant must know their credit score, as it determines their eligibility to opt for a credit card.
  3. The applicant must identify their card needs.
  4. The applicant must understand the card’s balance transfer policy.
  5. The applicant should apply for the card with a maximum overall value

Why You Should Choose Policybazaar.ae?

Policybazaar.ae offers the best financial products and makes personal finance decisions easy for applicants. When it comes to zeroing in on the best balance transfer credit cards, the applicants can compare various cards on the basis of benefits, fees, and features of various cards offered by various providers. Bridging the gap between the applicants and the providers has made the process of selection easy and hassle-free. Moreover, the company leaves no stone unturned to ensure complete transparency in the application process.

Average Rating / 5 ( reviews)