Balance Transfers Explained

Often credit card providers will offer very low or 0% interest promotional offers on either purchases or balance transfers. Sometimes these offers apply to both. These offers are normally limited for a certain period often 6,9 or 12 months or until a specific date. After this promotional period the credit card interest rate will return the the lenders standard offered rate. If you do not pay your card balance off in full each month one of these offers may save you money however you must remember that the offer is temporary and you should aim to reduce your balance over the promotional period and not increase it.

Make sure that you read all the small print and check out any balance transfer fees to ensure that you will not lose out in the deal.

Ensure that you understand what is included in the deal and how it applied to your balance and be sure to note the following points.

• It may or may not cover new purchases and is likely not to include cash advances.
• A late payment or going over your credit limit may end the promotional period.
• You may have to spend a minimum per month to continue the promotional period.
• A transfer fee is often charged for a balance transfer. This can be added to your first repayment so ensure that you take this into account.
• The banking code requires credit card lenders to inform you that the promotional period is due to end. They must give between four and eight weeks notice. You can check these expiry dates on your statement or by calling your credit card lender.

Finally the most important thing is to make sure you read and understand all the small print. If you have any questions ask your credit card provider or your local Citizens Advice Bureau (CAB).

Remember

BalanceTransferReminder.com is not registered with The Financial Services Authority and we are not a financial advisory service. The Website is based on journalistic research. Nothing within the Website is, or shall be deemed to constitute, financial or other advice or a recommendation to purchase any product or service. Any and all information provided within the Website is for general information purposes only. We strongly recommend that independent professional advice is obtained before you purchase any product and/or use any service via the Website.