Balance transfer is great idea if implemented properly. You can transfer balance to another card, but make sure to put that card into locker. If you use that card to purchase anything, you get into trouble. Let me explain. If you have 50000 in card A which you balance transfer to card B. So your card B holds balance of 50000 interest free for incoming 12 months.
Say you purchase 5000 worth of item on card B, your total balance will be 55000. If you pay 5000 in next statement date, it will minus 5000 from 50,000 and NOT from purchase of 5000.
Your 5000 purchase will keep incurring interest until you get rid of your 50000 balance transfer.
Credit card payment operates in this way: When you pay towards balance of your credit card, that payment is allocated towards least interest items.
So if your card has 6000 Rs cash withdrawal, 5000 of purchase & 50000 of balance transfer; payments will be allocated to balance transfer first, second to withdrawals and then cash withdrawals.
So best option when you do balance transfer is to lock credit card into locker until you get rid of balance.
