1. Credit Card Balance Transfer
Facing high credit card debt? Consider a balance transfer. Many banks offer zero or low-interest periods (up to 6 months) for repaying the transferred amount. You can also convert it into EMIs with tenures of 6 months to 2 years. However, check the EMI interest rates—they may be higher than personal loans. Transfers typically take 3-5 days and can be done from multiple cards onto one.
2. Impact on Your Credit Score
- Start repaying the transferred amount to see your score improve.
- Fully paying off the balance boosts your score significantly.
- Keep the old card for small payments and pay on time to further improve your score.
3. Home Loan Balance Transfer
Unhappy with your home loan rate or tenure? Switch lenders for better terms. The process is similar to applying for a new loan, and it’s most beneficial early in your loan tenure when EMIs mainly cover interest.
4. Impact on Your Credit Score
- Ensure eligibility to avoid rejections that hurt your score.
- The transfer doesn’t impact your score, but timely payments do.
- A higher EMI with a shorter tenure can help boost your score.
5. Key Takeaway
Efficiently managing your finances keeps your credit score healthy, giving you access to better financial products.