Balance transfer facility on Credit cards

I just got my card statement today and in that there was a flyer on balance transfer. I have read it a few times before - but never got to thinking about it.

Hence i decided to write my thoughts about it today.

So whats on offer.
1. If you have an outstanding balance on any of your credit cards- you can transfer that amount to another card ( Say SBI)
2. SBI ( the card where you are transferring money to) does not charge you any interest for the transfer.
3. You get another 90 odd days of time where you do not need to make payment for the money transferred.
4. There is a processing fee involved00 if 2.5% ( nothing comes free of charge!)
5. You can transfer on from VISA to VISA and Mastercard to Mastercard ( How many of us really go only for visa/ mastercard?-- i really dont know the difference- if someone does-- please enlighten the group)

Of course there must be a few critical points which you must take care of.

1. Ensure that you dont lapse on these payments ( or even your regular bill payments) else you will be charged a hefty amount. Try automating your interest payments ( read how to here)
2. Not sure how many time companies will allow you to do so. Usually this facility is given to people who have a good track record-- so be careful if this spoils your credit score- it can have multiple issues going forward!


So whats the verdict?


Its a great way to roll over credit without really paying for it- only if you really need the cashflow..


 Dont use this to create a "Game". It does have possibilities to do so-- but beware- if caught you can be in a lot of trouble with your credit score-- why take a risk?

Happy investing! -- comments more than welcome

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