Well in case you see Balance transfer is processed by which you can pay your existing debts on the credit card, in this, you combine multiple credit card debt together and then pay it off.
Now as Balance transfer have its own pros and con, so let’s identify them for analysis:-
Pros
1.The low rate of interest: In this process, you get an option to change your credit card provider so in this case, you always opt for the one charging a low rate of interest in this manner you get an option and you also be safe.
- Easy approval: You get easy approval from a bank for balance transfer rather than getting approval for a personal loan.
Cons
1: Restricted credit limit:-
In balance transfer facility it is not necessary that you will be getting a credit of the whole amount it depends, like your credit limit for a card is 50000 that means you can pay only 50000 amount of debt and this much can only be balance transferred.
This gives us a conclusion that you can go for balance transfer to clear your debt on credit cards rather than doing any settlement or paying a late fee that can affect your credit score.