What is a Balance Transfer?
A balance transfer involves moving your high-interest debt from one credit card to another, usually with a lower interest rate or a 0% introductory period. In 2026, many banks offer "BT on EMI" plans at 12-15% interest, which is far better than the standard 42% charged on unpaid card balances.
The Transfer Fee Calculation
Most transfers aren't free. Lenders typically charge a processing fee of 1% to 3%. You must ensure that the interest saved over the next 6-12 months is significantly higher than this upfront fee. Use our EMI calculator to compare the "Cost of Debt" before and after the transfer.
The "New Purchases" Warning
This is the most critical rule: NEVER make new purchases on a card after you have transferred a balance to it. Most cards apply payments to the low-interest transferred balance first, meaning your new purchases will sit there accumulating 40%+ interest until the entire transfer is paid off.