0% Balance Transfer and Purchase Credit Cards

How to use a 0% balance transfer and purchase credit card...

Perhaps you have a hectic period of expenditure looming ahead, but debts trailing behind you, and seemingly no way to pay for it all whilst keeping up repayments. Fortunately, a 0% balance transfer and purchase credit card can help.

Get your debts in the same place as your spending and capitalise on the 0% period before it runs out.

Making the most of your card:

- Transfer early
Despite the fact the card may state that the 0% period runs for X amount of months there is only a small time frame in which you must move any debt over.

Get any debt moved over as soon as you can so that you don't forget to do it! Not to mention that, the sooner you have it in your new account the sooner you can pay it off instead of the interest it's picking up.

Most cards will allow you to transfer money during the online card application process!

- Spend early
As with the balance transfer, you will have to pay back the money you spend on the card, and it is far better to do it sooner - within the introductory period - rather than later, when you will more than likely be paying back interest instead.

If you have several large purchases to make, get them out the way early so that you can focus on the repayments.

- Spend within your budget
It is all too easy to get carried away and max out the card in the first few months, without thinking about the consequences.

Don't fall into the trap! This is exactly what the credit card companies want you to do: rack up more debt on top of your previous debts so that you can pay them bundles of interest for looking after the money.

Things to watch out for:

- Cash withdrawals
Ensure that you always have a debit card handy for cash withdrawals, as they will destroy any savings you could be making, by trapping your expensive cash withdrawals behind your balance transfer and spending debt.

Be aware of the more sly methods such as, 'cash back', foreign currency purchase, and gambling establishments, which all qualify as cash withdrawals.

- Expiry of the introductory period
Make sure you are aware of when the 0% deal runs out (the date from signing the agreement) and be fully prepared for it, so that you aren't blindsided by interest on your next statement.

- Try not to be a tart
'Tarting' is the process of shifting balances between 0% credit cards when each introductory period expires.

Whilst it may seem like a good idea in practice, credit card issuers are aware of the 'users' and are cracking down on them. Whilst it may seem profitable in the short term, it can be potentially damaging to your credit rating in the long term.

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