0 Balance Transfer Credit Cards
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0 Balance Transfer Credit Cards

We are all feeling short of cash at the moment. 0 balance transfer credit cards can help enormously. If you owe a large amount of money on your credit card or cards it can feel as though you’ll never pay them off. 0% balance transfer credit cards may well get you through until things improve.

With credit card companies looking to maximise their profits many people with a large debt on their card are finding their interest rates are being increased. 0 balance transfer credit cards are offered by many card companies and are a great way to get control of your debt.

What is a balance transfer?

Put simply it’s what happens when you pay off debt on your old cards with your new one.

Say you have 2 cards a and b owing £2000 on each.
You get a 0% balance transfer card c.
You ask c to transfer the debt from a and b to c
C pays off a and b and your debt is now on c at a low rate!

So you now owe a and b nothing as the debts have been paid off by c at hopefully a special cheap rate.

Usually these balance transfer deals are offered to new cardholders only and you have to move the debt in the first 60 days. However some companies offer cardholders the chance to get a 0% deal.

Six Top Tips To Get The Best Balance Transfer Deal

The Small Print – Many deals don’t have 0% for purchases, only balance transfers. Purchases are charged at the usual APR and your payments reduce the balance transfer not purchases.

The length of the offer – Usually the 0% lasts for between 6 – 12 months. Make a note of it and also when interest will start to be charged.

What’s your rate? – All credit card providers reserve the right to charge you a different interest rate. If your credit history has any problems you may be charged a different rate.

0% on everything? – Many deals only apply to balance transfers and not to purchases you make or if you use your card to get cash. Others give 3 months at 0% for purchases and then charge the normal APR. So read the small print.

Fee charged for balance transfers – Many of the card companies apply a fee of between 2 – 3 % for each transfer. A few don’t charge a fee at all, which is a nice bonus but not the norm. If the 0% offer lasts for 12 months the 3% fee is not too bad.

Keep your new card in your wallet – Do not use your new card with the balance transferred for any purchases or to get cash. You will more than likely be charged interest at the normal rate. Also your monthly payment just goes towards reducing the balance transfer at 0%, not purchases at anything from 12 – 20%. So the interest piles up month after month. Best avoid

0 balance transfer credit cards are a great way of getting control of your finances as long as you remember the tips above. After your balance transfer, put the card away, don’t use it and make payments each month.