Citibank Credit Card Balance Transfer

Citibank Credit Card Balance Transfer

What is credit card balance transfer?

A credit card balance transfer can be defined as the transfer of one credit card balance amount to another, this can be seen as a method employed by many lenders (banks) to get customers to use or shift to another credit card like Citibank credit cards.

A credit card balance transfer is targeted mainly at those who have considerable credit card debt and are having issues in repayment, these customers could be encouraged to shift to a new lender or another bank who could offer at a lesser interest rate. In this way the credit card holder is able to shift to a better card (in terms of interest rate) and reduce debt burden from existing cards.

Impact of missing credit card payments

There are heavy repercussions in not being able to pay the credit card debt, in an increasing interest rate scenario, debt rises and with every missed payment or minimum balance could affect the overall credit history of the individual. Once the credit score takes a beating it is very difficult to rebuild, especially in times of rising debt and the individual falls into the vicious cycle of debt.

For example, when a customer has a have a credit statement with dues of Rs. 10000, now for this say the minimum amount due is Rs. 1000. Let’s say due to a cash crush the customer pays Rs. 1000 out of which majority say Rs. 700 will go towards the payment of interest for the balance to be paid with Rs. 300 goes towards the principle.

Thus, at the end of the next billing cycle balance of Rs. 9700 apart from interest to be paid and GST provided you had not used your card the previous month. If the customer uses a credit card to purchase items worth say Rs. 3000 then the balance will be Rs. 12700. This will just keep increasing each month.

As it is seen rising credit card will make life difficult for the borrower and a credit card balance transfer would be the way to ease this burden of debt.

Incentives for Credit Card Balance Transfer

A bank looking to acquire a new customer uses different methods to make the customer leave their current credit card and switch to another card, the favourable methods that they use could be in the form of

• Low interest rates: as discussed above, giving a card at a lower interest rate than the existing card. This is the most widespread tactic that is followed by banks
• Interest free periods: sometimes banks could also declare a period as interest free period which could be favourable for the customer. The interest free periods could vary from lender to lender
• Loyalty Points: Another commonly adopted method which is adopted by the cards department of banks is giving away loyalty, airport lounge privileges and reward points with tie up with exciting lenders and ecommerce sites, this could be a deal breaker in terms of shifting to another credit card. After all everyone wishes to accumulate more reward points with every swipe.

Benefits of Credit Card Balance Transfer

Following are the benefits that a user gets by making a credit card balance transfer

• Quick and Timely: If the customer is able to meet the eligibility criteria of a balance transfer then Citibank will allow the customer to transfer the balance from one credit card of different bank to Citibank credit card within a short period of time, hence would be of timely help to pay the current credit card debt.
• Multiple Transfer: It makes more sense to transfer all existing credit card debts to the new card and most banks offer this facility. Now the borrower can payback all debts from one place.
• Incentives: A credit card balance transfer also comes with incentives like an interest free period and lower interest rates these will come as a respite to the borrower.

Transaction Fee

A transaction fee or a commission is charged by the new credit card issuer when a borrower applies for a credit card, this could typically range between 1-5% of the debt that is about to be transferred. It is best to keep in mind the cost of processing fee while applying for a balance transfer and to opt for the lender that offers the best rate and that which would be completely beneficial to the borrower.

How to Transfer Credit Card Balance from One Card to Citibank Credit Card

The most common question in everyone’s mind would be on how to go about this balance transfer, we have tried to illustrate the process in a few simple steps.

Eligibility:

Customers who have had a good track record with Citi with respect to their credit card spends, transaction pattern and payment history becomes eligible for a balance transfer on credit card from time to time, depending on the internal policies of the bank.

Modes of Fund Transfer:

Funds would be transferred via NEFT or Demand Draft. The customer needs to provide details of the other bank name, customer’s name as per other bank details and other bank credit card number in which the balance transfer is to be taken.

To Apply:

Call Citibank Credit Card Customer Care or register online by filling an application form. Their executive will call you back on your registered mobile number.

Citibank Credit Card Balance Transfer FAQS

1. I only have Rs.70000 as the credit limit on my Citi credit card but have a credit card bill of Rs.85000 on my other credit card. Can I transfer the whole Rs.85000 balance to my Citi credit card?

You can only transfer Rs.70000 from your other credit card to Citi credit card, but you can request Citibank to increase your credit limit.

2. How long will it take to transfer credit card balance from one bank to my Citibank credit card?

The request if you satisfy their eligibility criteria will be taken up immediately and process completed in minimum of 3 days.

3. What is the eligibility criteria for Citibank credit card balance transfer?

You need to have a good track record of repaying Citi credit card dues, usage and transaction patterns.

4. Can I get a new credit card for the purpose of credit card balance transfer?

If you have a good salary in a stable job and satisfy the criteria set by Citibank you will be eligible to get an Citi credit card for the purpose of balance transfer.

How to apply for Citi balance transfer credit card?

You can apply for a Citi balance transfer credit card through

a) Website: You can visit the Citibank website to apply for the credit card

b) Branch: Visit the local Citibank branch to apply for the credit card

c) CreditMantri: Visit www.creditmantri.com to create your credit profile and get the best cards that match your preferences