Balance Transfer Credit Card: A Tale of Aziz

Aziz is a young man living in Abu Dhabi. His everyday life involves travelling to and from Dubai for work, spending time with family, hanging out with friends over the weekend, and travelling once every two months. 

He takes care of his family’s everyday expenses, be it getting groceries, last-minute stationery shopping for the kids, or refuelling his wife’s ride using his credit cards. Moreover, he used this card for booking his trips around the country. 

His monthly expenses increased as the family grew. He started mounting debt on his existing credit cards. To repay the debt, he consulted his friend, a financial consultant, who recommended that he opt for the balance transfer option on one of the existing cards with a lower or 0% promotional period. 

• Following his friend’s advice, Aziz applied for a balance transfer facility on his existing card
• The bank that issued this card paid off his outstanding balance on other old cards via cheque
• He now owed the transfer amount to the bank, that too, at a lower interest rate, with monthly instalments over 12 months

He could get rid of his revolving credit cycle. Subsequently, his credit score improved too. He became much more responsible when it came to handling debt from then on. 

For Your Information: What is a Balance Transfer Facility on a Credit Card?

With a credit card balance transfer facility, you can move high-interest debt from an existing card to a new or different card with a lower interest rate. This way, your debts are consolidated, and you save money on interest payments. 

Here’s the deal about this facility. Your old cards need to remain open after the transfer. You should continue making minimum payments to the old bank till the time the old bank confirms that the balance transfer has been cleared. 

Check out balance transfer credit card options on Paisabazaar.ae!