0% Balance Transfer Credit Cards

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

0% balance transfer credit cards are absolutely wonderful things. They allow you to transfer the balance from an exisiting card where you are probably paying a high interest rate to a card with a 0% interest rate for around 6 – 12 months.

Unfortunately, the days of free transfers are nearly all but over. However, these fees are usually much less than the potential savings you can make in interest charges.

Making the most of your card

- Move quickly
Be sure to transfer the balance across from your old credit card to the new 0% balance transfer credit card as soon as you possibly can. There are two reasons for this:
i) The sooner you move it, the sooner you can start benefiting from 0% rates
ii) Many card issuers only allow a small window period in which to make the transfer. Miss the period and you could miss the 0% benefits too.

- Know how to make the transfer
Transferring your balance across is easy. In fact there are usually four ways you can do it:
i) At the time of your online application
ii) Using the 'Balance Transfer' forms that will be sent along with your new card
iii) Via online or telephone banking
iv) Using credit card cheques (only if they are included with the 0% offer)

Things to watch out for

- Don't spend on this card
The problem with many 0% balance transfer credit cards is that they also come packed with enticing rewards that urge you to spend on it too.

This is a big mistake.

Most cards charge interest on purchases at their standard interest rate (which is usually very high on these types of cards).

Compounding the problem is that the cards will prioritise any payments you make to pay off the balance transfer first, leaving the purchase amounts to languish in the land of high interest!

There is a way around this problem, you need to choose a 0% balance transfer credit card that also offers 0% rates on purchases as well, and most importantly, for the same length of time.

Unless your 0% balance transfer credit card also offers 0% on purchases for the same introductory period, our advice to you is: make the transfer, then hide the card away!

Compare 0% balance transfer credit cards