0% Balance Transfer Credit Cards

How to choose a 0% balance transfer credit card...

0% balance transfer credit cards are designed to attract new customers by allowing you to transfer your entire balance from another credit card and enjoy a lengthy interest-free period.

There are plenty of 0% balance transfer credit cards available, and our 0% balance transfer comparison table will give you a good idea of what is on offer, but before deciding, keep in mind the advice and pointers on this page.

:: These cards are good for:

Transferring balances from an existing credit card (or cards), allowing you to avoid paying interest on the balance for a period of up to 15 months (depending on the card).

:: These are cards are unsuitable for:

General credit card use, such as making purchases or foreign travel. They are also unsuitable if you will be unable to pay off the balance (or transfer it elsewhere) at the end of the 0% period, as the APR thereafter is normally much higher than other credit cards, you may want to look at life of balance transfer credit cards instead.

Look for:

- Longest 0% period
Try to find a card offering the longest 0% balance transfer period.

You will notice that pretty much all 0% cards now charge a transfer fee, and free transfers can now usually only be found on life of balance transfer offers.

Don't be too put off by these fees though, you are probably better off paying the transfer fee for a long 0% deal (especially if the fee is capped) than paying interest each month on your current card.

- Interest rate for after the 0% period
Keep an eye on the interest rate, or typical APR, that kicks in after the interest-free period has expired.

Even if you plan to just shift the balance elsewhere at the end of the 0% interest free period, keep in mind that circumstances change and that there is a chance you may not be able to get another credit card six or twelve months down the line, leaving you stuck with a high APR.

- How the card handles purchases
Generally, the 0% interest rate on the credit card applies to the balance you have transferred only. This means that if you use the credit card for purchase spending you may be charged a much higher interest rate on your purchase balance.

Not only this, but your repayments will normally be channelled first to paying off your 0% balance transfer, leaving your purchases to accrue huge amounts of interest.

If you are intending on also using your 0% balance transfer credit card for purchases it's vital to choose one that is also suitable for purchase spending.

0% balance transfer credit cards that are suitable for purchase spending must offer a 0% rate on both balance transfers and purchases for the same length of time.

- How much you will be charged for the transfer
Remember that most card issuers now charge a small percentage (usually 2%) of the amount you will be transferring.

Some card issuers will cap this transfer fee at around £50, although these cards are becoming more few and far between, they can usually save you money if you are transferring an amount of more than £2,500.

Watch out for:

- Transfer charges
Most card issuers now charge a transfer fee of around 2% of the balance.

- Transfer charges without caps
Be aware of 0% balance transfer credit cards that do not cap the transfer fee. Although capped fee 0% balance transfer credit cards are becoming rarer, they can save you money if you are transferring a large balance.

- APR on purchases
Very often the 0% rate is only applicable to the amount you have transferred over, and purchases made on the card will be charged at the standard interest rate. Not only this, but often your repayments will be channelled to pay off your transferred balance first, leaving your purchases to rack up gigantic interest charges.

If you are intending on using your 0% balance transfer credit card for purchase spending as well, make sure it offers a 0% rate on purchases too, and for the same length of time.

- Time limits in transferring
There is often a short window period for transferring the balance from your old card. Do it as soon as you can (try to do it in less than 7 days), or you may be charged penalties or even lose the 0% promotional rate altogether.

- Fantastic rewards and benefits
Be very cautious of any enticements the card issuer may wave in front of you such as hard-to-beat cash-back offers. These are designed to lure you into spending on the card which, as we have pointed out above, will usually not be subject to the 0% they kindly offered you on your balance transfer.

Don't forget:

- No interest doesn't mean no payments
While you may not be paying any interest, you will still be expected to make at least the minimum monthly payments.

- Don't hang around
Transfer your balance as soon as you possibly can. Many cards only offer a small window period in which to do this, so don't lose out.

- Pay on time
Be on time with your payments, or you may risk losing the 0% offer (that's right, miss one payment and you could see your interest rate rocket from 0% – 16% in the blink of an eye!)

Compare 0% balance transfer credit cards