Likes and Dislikes of a Balance Transfer Credit Card

If like the millions of people in the world your have a balance on a credit card that you do not pay in full each month now is the time to look at applying for an interest free 0% APR rate balance transfer credit card. Not only will you save money in interest you will be able to pay your repayments directly to the balance for the period of the interest free period. This will mean that you will be debt free sooner! However there are lots of credit card options and the choices can be very confusing. Here are some of the points to consider when examining the available credit cards and the offers of balance transfer deals. Consider these points and if you are in any doubt seek the advice of an Independent Financial Advisor (IFA):

Likes

• An offer of 0% interest for the longest time possible
• If possible avoid any card fees that may be charged by the card company instead of interest e.g. annual fees, transaction charges and balance transfer fees.
• The best solution is a card that you can transfer your whole balance to and then close the old card to avoid temptation of spending on the old credit card.
• If you are planning to spend on the new card, which is to be avoided if possible, you should try and get a good introductory interest rate on the balance transfer rate card.
• The standard interest rate of the balance transfer credit card should be as low as possible if you decide to keep the card after the promotional period finishes.
• It should be possible to settle (pay) the full outstanding balance of the balance transfer credit card without incurring any penalty or fees.
• Longer term if you want to keep the card and use it a good reward program is a good idea.

Dislikes

• Fees or charges are the hidden cost of balance transfer credit cards.
• The 0% interest free credit card balance transfer period does not also apply to new purchases.
• Some of the credit cards have terms and conditions that state that you will lose the interest free balance transfer promotional period if you miss or are late with a payment. Ensure that you always pay on time.
• Do not build up more debt on the card if you can avoid it. Credit cards should be used responsibly and 0% credit card balance transfers should used to pay of existing debts where possible not extend your borrowing.

If you select a card wisely and transfer your existing balance to it you have a good opportunity to pay of substantial debt with no interest. Check out the potential savings on our balance transfer calculator. Be careful that you do not spend more on the old card or the new balance transfer card. If you need further advice please speak to an Independent Financial Advisor (IFA).

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.