Balance transfer means that you are transferring your balance on your existing credit card by transferring it to another credit card account. This helps you save money as you are getting a lower interest rate. When you are able to save money on interest, you will be able to pay off your debt faster. You may only be able to transfer the amount that is up to your credit card limit. There is a certain balance transfer fee charged by the Banks. Some banks offer 0% interest rate as an introductory offer for a certain period. Mashreq Bank offers balance transfer facility to their credit cardholders.
Features and benefits of Mashreq Bank Credit Card Balance Transfer
Following are the features and benefits of Mashreq Bank Credit Card Balance Transfer:
- The cardholder will have to repay the balance transferred in equal monthly instalments.
- The credit limit gets reduced when you transfer the balance.
- A certain processing fee will be charged.
- The interest rate availed is a flat rate.
- The balance transfer will be a part of the minimum payment due.
- Until the credit balance is transferred you will have to make payments to the other bank account.
- You will not earn any rewards on the balance transferred.
- 0% interest charged for the first 3 months. Post that the balance will attract a normal interest rate.
- The payments you make towards the card will first settle the balance transfer amount and then the unbilled cash advances and purchases.
- Balance transfer is applicable for other credit cards issued in the UAE only.
- The customer needs to call the call center to reduce the standing instruction percentage if there is a 100% standing instruction on the card.
- Cardholder must avail credit shield to protect the card till the validity of the deal.
Fees and charges
Following are the fees and charges that you may incur:
- If you intend to settle the balance before the tenure expires, you will be charged an early settlement fee of AED100.
- AED0.95 is charged as an authorisation transaction fee for processing the balance transfer request.
- A nominal charge of 0.89% will be charged towards credit shield.
- If the credit shield is cancelled before the expiry of the deal, the credit cardholder will be charged up to AED300 as credit shield insurance cancellation fee.