Balance Transfer Loans

Balance transfer loans are an excellent short-term option for tackling unmanageable credit card debt. Our loan specialists analyzed all of the balance transfer loans available in Singapore to assist you in finding the most affordable products. Compare these offers and get the best credit. It is helpful to ponder your low-interest rate preferences, interest-free periods and cashback promotions.

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Our Top Picks for the Best Balance Transfer Loans in Singapore

Bank Best For: EIR Interest Free
Standard Chartered Funds Transfer Credit Card Transfer 2.83-4.86% 3 – 12 months
UOB Balance Transfer 12-Month Transfer 4.82-5.34% 6 & 12 months
Maybank Fund Transfer Large, Short-Term Transfers 2.96-9.01% 6 & 12 months
HSBC Balance Transfer Line of Credit Transfers 3.26-6.77% 6 & 12 months
Citibank Ready Credit Balance Transfer New Customers 3.60-7.87% 3 – 12 months
Interest rates vary for different tenures and loan amounts. Please see below for further details

Singapore Best Balance Transfer Loans Available For You To Compare

Singapore Best Balance Transfer Loans Available For You To Compare

For interested readers, below is a graphic illustration of the effective interest rates of each 12-month interest-free balance transfer loan available in Singapore, sorted by most affordable to most expensive. These are determined by assuming you only make the monthly minimum repayment requirement each month of your loan and repay the remaining balance in the last month of your interest-free period. For details, please refer to our balance transfer summary table.

Effective Interest Rates of 12-Month Interest-Free Balance Transfers

Best Credit Card Balance Transfer: Standard Chartered Credit Card Funds Transfer

  • Market Leading Rates: 2.83-4.86% EIR
  • Low Minimum Monthly Payment Requirement: 1%
  • Promotions:
  • $200 cash via PayNow for new credit card customers (via SGSaver)
  • $20 cashback upon approval for new customers
  • Read Our Full Review
Interest-Free Period Processing Fee Effective Interest Rate Prevailing Interest Rate
3 months 0.7% 2.83% 26.9%
6 months 1.5% 3.10% 26.9%
9 months 2.5% 3.51% 26.9%
12 months 4.5% 4.86% 26.9%
If you are looking to repay your credit card debt, Standard Chartered’s Funds Transfer is probably the cheapest way to make it happen. Due to its low fees, the bank is the most affordable option for credit card balance transfers (0.7-4.5%). In addition, the equilibrium transfers from Standard Chartered include 3 to 12 months of interest-free periods, which give borrowers more flexibility than other banks.

Best 12-Month Balance Transfer Loan: UOB Balance Transfer

  • Cheapest 12-Month Interest Free Balance Transfer
  • Promotions:
  • Discounted processing fee of 4.28% (from 4.5%) for 12-month balance transfers (online exclusive)
  • Get a S$50 Dairy Farm Gift Voucher upon approval (min. S$10,000 for 12 months)
  • Read Our Full Review
Interest-Free Period Processing Fee EIR with UOB Credit Cards EIR with UOB CashPlus
6 months 2.5% 5.34% 5.20%
12 months 4.28% 4.95% 4.69%
We believe that UOB’s Balance Transfer product is the best solution for those who need a long period of interest-free repayment. Due to the remarkable 4.28% processing charge offered to online applicants, UOB offers minor cost balance transfers with interest-free 12 months.

At present, UOB also provides Dairy Farm with a S$50 promotional card. UOB delivers credit card and CashPlus balance loans slightly different in the total cost and minimum monthly repayment requirements. The absolute price difference is insignificant, with both products being among Singapore’s cheapest products.

Honorable Mention: Other Balance Transfer Loans to Consider

For most borrowers, the balance mentioned above transfers is the most affordable options. However, borrowers may find that other transfers make more sense for their financial needs in certain circumstances. Below are some other loans that you could value based on your preferences.

Best for Large Balances & Short Repayment Periods: Maybank Fund Transfer

  • Lowest Rates for Balances of S$10,000+: 2.96% EIR
  • Maximum Loan Amount: 95% of Credit Line
  • Read Our Full Review
Duration Minimum Transfer Interest Rate Processing Fee Effective Interest Rate Prevailing Interest Rate
6 months S$10,000 N/A 1.38% 2.96% 25.9%
6 months S$2,000 N/A 1.88% 4.02% 25.9%
12 months S$2,000 4.99% 2.5% 9.01% 25.9%
We believe that UOB’s Balance Transfer product is the best solution for those who need a long period of interest-free repayment. UOB offers its special 4.28% processing fee to online applicants the cheapest balance transfers with 12-month interest-free periods.

At present, UOB also provides Dairy Farm with a S$50 promotional card. UOB delivers credit card and CashPlus balance loans slightly different in the total cost and minimum monthly repayment requirements. The actual cost difference is insignificant, with both of Singapore’s cheapest products.

Best 6-Month Line of Credit Transfer: HSBC Personal Line of Credit Balance Transfer

  • Competitive Line of Credit Fund Transfers: 3.26-5.47% EIR
  • High EIR on Credit Card Balance Transfers: 4.39%-6.77% EIR
  • Read Our Full Review
Transfer Type Duration Interest Rate Processing Fee Effective Interest Rate Prevailing Interest Rate
PLOC (> S$10,000) 6 months N/A 1.50% 3.26% 18.5%
PLOC (< S$10,000) 6 months N/A 2.50% 5.47% 18.5%
PLOC 12 months 4.88% N/A 4.88% 18.5%
Credit Card 6 months 2.50% S$88 (waived) 4.39% 28%
Credit Card 12 months 4.88% S$88 (waived) 6.77% 28%

HSBC’s balance transfer is an excellent option for borrowers who know they need a sizeable personal line of the credit balance transfer. HSBC currently offers a 6-month interest-free period combined with a 1.5% processing fee for its unique line of credit balance transfers of at least S$10,000. HSBC also charges a lower prevailing interest rate than other 6-month interest-free balance transfers (18.5%); however, it is still essential to avoid accruing interest costs to make your balance transfer as inexpensive as possible. Finally, it is necessary to note that HSBC’s transfers (e.g. smaller, credit card) are much less competitive than its extensive, 6-month personal line of credit transfers.

New Citi Customers Only: Citibank Ready Credit Balance Transfer

  • Preferential Rates for New Citi Customers: 3.60-3.65% EIR
  • Higher than Average Rates for Existing Citi Customers: 5.72-5.81% EIR
  • Read Our Full Review
Interest-Free Period Processing Fee Credit Card Balance Transfer EIR Ready Credit Balance Transfer EIR
3 months 1.58% 6.73% 6.69%
6 months 1.58% 3.65% 3.60%
6 months * 2.50% 5.81% 5.72%
12 months 5.50% 7.87% 7.58%
* rates for existing customers

If you haven’t in the last 12 months had a banking relationship with Citibank’s Balance Transfer product of Citibank is an excellent way to provide interest-free balance transfers for six months. New customers with a competitive charge of only 1.58% can use six months zero interest in balance transfers. However, if you have had a relationship with Citi over the past 12 months that is well below the market average, the rate will grow to 2,5%. The balance transfer by Citibank’s credit card also provides a 1% monthly market-leading repayment requirement. As always, we strongly suggest that borrowers pay their balance as much as possible because they will incur 20.95% – 26% of the interest per year after their sixth month.

How to Pick a Balance Transfer Loan

Some critical steps are taken to find an affordable balance transfer loan. In the first place, a realistic expectation of how long you will reimburse your current debt is necessary. This is important as equilibrium transfers provide interest-free periods for borrowers to repay existing debts without additional costs. After the free period of interest, interest rates rise substantially to the ‘prevailing rate of interest,’ making repayment of your debt essential for the interest-free period. We advise you to look for debt consolidation loans that charge less expensive interest rates without interest-free time frames if you need more than a year to pay off your debt. After establishing how long your debt will need to pay, we advise you to compare balance transfers with their effective interest rate (EIR).

List Table of Best Balance Transfer Offers in Singapore

For reference, the table below outlines the processing fees affiliated with Singapore’s best balance transfers for 2021.

Processing Fee by Interest Rate Free Period 3 months 6-months 12-months 18-months Minimum Monthly Repayment
Citibank Credit Card Balance Transfer 1.58% 1.58% 5.5% N/A 1% (or S$50, whichever is higher)
DBS/POSB Balance Transfer Cashline N/A 2.5% 4.5% N/A 2.5%
DBS/POSB Balance Transfer Credit Card N/A 2.5% 4.5% N/A 3%
Citibank Ready Credit Balance Transfer 1.58% 1.58% 5.5% N/A 3% (or S$45, whichever is higher)
HSBC Credit Cards Balance Transfer N/A S$88 (waived) + 2.5% of interest S$88 waived if >S$10,000 + 4.88% of interest N/A 3% (or S$50, whichever is higher)
HSBC Personal Line of Credit Balance Transfer N/A 1.38% 4.88% of interest N/A 3%
Maybank Fund Transfer N/A 1.38% if >S$10,000, 1.88% if >S$2,000 2.5% + 4.99% of interest N/A 3% (or S$10, whichever is higher)
OCBC Balance Transfer 1.8% 2.5% 4.5% N/A 3.0% (or S$50, whichever is higher)
Standard Chartered Funds Transfer 0.7% 1.5% 4.5% N/A 1%
UOB CashPlus Balance Transfer N/A 2.5% 4.28% N/A 2.5% (or S$30, whichever is higher)
UOB Credit Card Balance Transfer N/A 2.5% 4.28% N/A 3.0% (or S$50, whichever is higher)

Your debt reduction strategy may benefit from a balance transfer if you’re struggling with high-interest credit card debt. According to the Federal Reserve Bank of New York, a balance transfer is a process of moving high-interest debt from one or more credit cards to a credit card with a lower interest rate.

As a result, you’ll be able to pay off your debt faster, as more of your monthly payments will go toward the card’s principal balance instead of interest charges. A low or even 0% APR on the transferred credit for a set period of time, usually six to 18 months, can save you hundreds, if not thousands, in interest. However, balance transfers are not free. Before applying for a low or 0% interest credit card, you should know the fees associated with balance transfers and other factors.

Here, we explain how balance transfers work and provide some tips on determining if this debt repayment strategy is right for you.

Transferring debt balances from one account to another is known as a balance transfer. Moving debt from one credit card to another is the most common type of balance transfer. Transferring a balance is most often done to take advantage of a lower interest rate on balance.

Credit card debt is not the only type of debt that can be transferred or consolidated.

Many credit card companies offer checks for balance transfers as a way to facilitate balance transfers. Typically, credit card issuers charge 3% to 5% of the transferred amount as a fee for balance transfer transactions.

This is especially true when the transfer is from a high-interest account into a lower-interest account. On a credit card in early 2017, the average interest rate was 15.50%.

You should only transfer your debt if you have a solid plan in place for paying it off. Managing the debt load and creating a plan to pay it off becomes more accessible.

Unless you read the fine print, balance transfers can be a wrong move. After the introductory period, the interest rate on most low-interest or 0% interest credit cards is much higher. Read the fine print of the transfer offer and understand what the interest rate will be once the introductory period ends. If you don’t understand the fine print, don’t accept the offer. If you don’t understand the fine print, don’t accept the offer. Interest rates on the new line of credit could be higher than on the previous line of credit.

Credit card balance transfers involve moving money owed from one credit card to another that charges lower interest rates. You can take control of your debt with the help of a balance transfer if you use it correctly. Because the interest rate usually is 0%, these credit cards are only available for a limited period of time.

As a result, you’ll be able to save money and pay off your debt faster. Would you please keep in mind that these reduced interest rates are only available for a limited time, after which average interest rates will apply? Often, you’ll have to pay a fee on the amount you’re transferring.

On a new credit card application, you’ll usually ask for a balance transfer. As an alternative, you can wait until you’ve been approved for the card. However, it’s best to get started on the application process as soon as possible. If you already have a balance, you’ll need to know your account number and how much money you’d like to transfer over.

As a result, your new issuer may either approve the total amount of the transferor only a portion of it. As soon as the transfer is approved, the existing balance is repaid by the issuing company.

Others require you to use a balance transfer check provided by the issuer. Payments are made to the new creditor once the transfer is complete.

Instantaneous transfers of balances do not exist. It could take anywhere from three days to six weeks for your balance transfer to complete, depending on the issuer and other factors. While your credit card issuer should be able to give you a sense of how long it will take, there’s no way to know in advance how long you’ll have to wait for the transfer to take place.

Be sure to pay your existing creditors at least the minimum amount due between now and the end of the year. Unsuccessful balance transfers could result in late fees or credit damage and could even cause the balance transfer to be stopped.

A balance transfer is an act of transferring outstanding debt from one credit card to another—usually a new one. Customers who want to move their credit card debt onto a card with a lower promotional interest rate and better benefits, such as a rewards program that allows them to earn cashback or points for everyday purchases, typically use credit card balance transfers to do so.

What is a credit card that allows you to transfer your credit card balance? As an incentive, many credit card companies waive balance transfer fees (which typically range from 3% to 5% of the transfer amount) to attract cardholders. A promotional or introductory period of six to 18 months may also be offered, during which no interest is charged on the transferred sum.

As a result, you’ll have a monthly balance, and you’ll still have to make timely payments of at least the minimum due on the transfer and any new purchases. If you’re not doing all these, you could lose the introductory APR of the credit card on your transferred balances, along with the grace period, and end up paying surprise interest charges (and potential penalty APRs) on new purchases instead.

Industrious consumers willing to study these offers carefully can take advantage of these incentives and avoid high-interest rates while paying off debt.

A balance transfer has two significant advantages, even though the terms will vary by the credit card issuer.

  • You can save money on interest. Transferring your credit card balance could save you a considerable amount of money. Paying 17% interest on a S$2,800 debt and making minimum monthly payments of S$82 would take close to four years to pay off the debt, assuming you pay the minimum of S$82 each month. And, to make matters worse, you would have to pay more than S$953 in interest charges. Calculate how much you could save with a balance transfer offer by using our balance transfer calculator. A 3% balance transfer fee (S$82) and a 15-month 0% interest period would allow you to pay off your S$2,800 debt in 15 months with payments of about S$189 per month, saving you a lot money in interest charges.
  • You can consolidate your debts. In addition to saving money and helping you pay off debt, transferring balances to a low-interest credit card can simplify your financial life as well. Pay attention to payment due dates and minimum payments if you’re carrying high balances on multiple high-interest credit cards. Your credit card debts can be consolidated on a single card in this case since you’ll have only one card and one payment to make each month.

Using a balance transfer credit card could be a great way to pay down more of what you owe while saving on interest payments. Balance transfer cards offer interest-free periods, which can give you enough time to reduce your total credit card debt before paying off the balance.

Consisting of a single credit card can also make it easier to keep track of payments. It’s essential to choose the right card for you. You can find out more about these cards and improve your chances of getting one with a 0% balance transfer fee by following these simple steps.

Great way to manage your debt, but it can negatively impact your credit score if it changes your credit utilization rate, the average age of accounts, or the number of credit inquiries on your report. This is true in general, as long as a balance transfer is used to get out of debt faster and you do not add to your debt while you’re paying it off.

You can transfer your existing debts into a new account with an annual percentage rate (APR) as low as 0%. An interest-free period of 12, 15, or 18 months, depending on the card, is offered to consolidate debt from multiple sources into one monthly payment.

Learn how a balance transfer will affect your credit score.

On your credit report, you’ll see an inquiry made when you apply for a card that allows you to transfer balances. Potential lenders, such as credit card issuers and banks, will run hard questions to see if you’re likely to make payments as agreed. When checking your credit or when lenders want to pre-approve you for a loan, soft inquiries do not affect your credit score.

Your application will be denied if the lender determines that you are a high-risk borrower. Lenders might think that you’re seeking credit from too many different sources and that you’re not a responsible borrower if you’re making multiple hard inquiries. As long as your payment history and total outstanding debt remain unaffected by hard questions, they can have a significant positive effect on your credit score.

This is because the average age of your accounts is lowered when you open a balance transfer card. Because experienced borrowers are much more likely to use their credit responsibly, lenders give high value to long credit histories. Your credit score may be temporarily affected by opening a new account. Still, the benefits of strategically using a balance transfer card to pay off debt will generally outweigh the adverse effects. So that you don’t get hit twice, avoid closing older accounts around the time you open a new one.

With a credit card, you can pay off your credit card debt quickly and easily. However, depending on several factors, balance transfers can either help or hurt your credit rating. Excellent credit (more than 740) may qualify you for some of the best balance-transfer credit cards available today. Scores below 700 may still be eligible for good deals but may not be granted initial credit lines large enough to transfer large balances. You may want to ask your existing card issuers to consider lowering interest rates on any balances that you cannot move to a new card.

For example, a credit score can be adversely affected by applying for several different cards with low introductory rates. 35% of your FR Capital Score comes from your credit history. The higher the score, the longer the accounts have been open. The average age of all credit accounts is lowered by opening several new accounts, lowering a credit score.

Consumers who apply for credit have their credit report checked each time. It’s possible to lose several points for each hard inquiry.

You can minimize the negative impact on a credit score by doing your research and applying for only one credit card. See if you qualify for one of the best balance transfer cards available. You may also find that a small personal loan is the best way to help you pay off your debt.

On your credit cards, you owe so much money that it’s almost impossible to pay it back. With such a high-interest rate, it’s hard to move forward. So, what can you do to help yourself? Un transfert de balance est une option à considérer.

It is transferring debt from one credit card to another, usually with a lower interest rate.

There is a risk of increasing your debt if you are unwary of the potential pitfalls.

This article will help you weigh the pros and cons of a balance transfer as part of your debt-relief strategy.

Balance transfer pros

It can consolidate your payments.

You may combine multiple credit card balances by transferring to a balance transfer card. Rather than making several payments each month and keeping track of various due dates, once you consolidate your debt onto one card, you can focus on one payment with one due date. This can make it easier for you to keep track of your bills.

You can save money on interest.

For a limited time, some balance transfer cards offer an introductory APR of 0% Amounts you do pay toward your debt are not consumed by interest, not to pay off principal, but to pay off the principal balance.

Consolidate your debt onto a new credit card.

As a credit cardholder, you may be frustrated by high-interest rates and terms that don’t offer you much. As long as you get approved for the right credit card, you may be able to transfer your debt to a card with a lower interest rate and more advantageous terms. Consider using a balance transfer credit card that offers rewards. Before taking on new credit card debt, you might want to wait until your transferred balance has been paid off before taking on new debt.

Balance transfer cons

You may have to pay a balance transfer fee.

A balance transfer is one of the few freebies in life. There is a balance transfer fee on many credit cards that ranges from 3% to 5% of the amount transferred.

Assume you’re transferring $6,800, and there’s a 3% balance transfer charge. To complete the transaction, you’ll have to pay $204. Before you transfer your balance, consider the additional cost to make sure you’re still saving money.

The low interest rate doesn’t last forever.

For a limited time, some balance transfer cards may offer an intro APR of 0%. Depending on the card, the intro APR period can range from 6 months to 21 months.

As a rule, good credit scores are required to qualify for a balance transfer credit card. Determining your APR will also be based on your credit score.

You could add to your debt.

You can pay off your debt and save money on interest by transferring your balances from one credit card account to another. A second credit card could easily lead to more debt if you haven’t addressed the underlying problem.

You may rack up even more debt with the new card if you don’t have a plan for it. And, you could end up transferring debt around without actually saving any money if you don’t pay off your existing obligations during the promotional period.

Some balance transfer credit cards offer 0% APR on purchases for a limited time, such as 12 to 18 months. As U.S. News & World Report’s credit card expert, Beverly Harzog advises, “don’t fall for it.” Die Verwendung von Balance Transfer Cards (BTC) for new purchases is one of the most common consumer mistakes. In this way, it’s possible to end up with even more debt.

You may need healthy credit.

As a rule, good credit scores are required to qualify for a balance transfer credit card. Determining your APR will also be based on your credit score.

Bottom line

When paying off debt faster, a balance transfer credit card can be a helpful tool. It’s possible to save money on interest if you qualify for a low-interest rate loan and pay off your debt during the promotional period.

A good idea would also be to address the underlying cause of your credit card debt before applying for a new card.

Balance transfer credit cards can be a good option for your financial situation if you carefully weigh the pros and cons. Then continue reading to find out how to make a balance transfer.

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About FR Capital

FR Capital is a Singapore consultancy firm that helps SMEs to secure business loans from banks and financial institutions. We concentrate on SME finance, and through our expertise and network, we help clients secure funding with low-interest rates efficiently and hassle-free.