Balance Transfer Credit Cards – Up to 29 months 0% interest
What are 0% balance transfer credit cards?
A 0% balance transfer credit card allows you to transfer existing credit card debt to a card with a 0% introductory offer.
This means that you can pay off your debt over a longer period without worrying about paying additional interest.
This can be a good way to save money on the cost of paying off your credit card debt because you can pay off the balance without paying interest charges.
It can also be a good way to make your debt more manageable. You can consolidate your debt from multiple credit cards and keep them all in one place.
How do you compare credit cards with balance transfer?
There are a few things to look for when comparing credit cards with balance transfer.
Duration of the balance transfer offer 0%
Most cards come with a 0% interest offer. This allows you to pay off your credit card debt within a specified time without paying interest. This period can be longer than 18 months depending on the offer, which can be very attractive to help pay off the debt without interest charges.
To get the most out of the introductory offer, calculate how much you will need to repay each month to make your repayments within the 0% interest period.
You transfer £ 1,000 to a card with a 24 month 0% introductory offer.
The transfer fee is 3% and costs you £ 30
In total you owe £ 1,030
Total debt divided by 24 months is £ 42.92
To pay off the credit card in full during the 0% introductory period, you will need to pay monthly: £ 42.92
You might get a shorter launch period than advertised
Be careful. When you have had credit problems in the past, you might benefit from a shorter introductory period than advertised, which may not make the offer as attractive.
Check when the 0% offer ends
0% balance transfer offers don’t last forever. At the end of the introductory offer, interest will revert to a more expensive standard rate.
To avoid paying interest, when transferring your credit card balance to a new card, always note the end of the introductory 0% interest rate. You can consider transferring any outstanding balance to a new balance transfer card to pay it off without paying expensive interest.
What does a 0% balance transfer offer cover?
A credit card can offer a long 0 balance transfer rate that lasts for years. But it might only offer a few months of interest-free spending.
In general, it is best to have your balance transfer credit card only for balance transfers. But it’s worth knowing what rates you’ll pay for the expenses, just in case you need to.
If you have a large debt owing over the 0% interest period, try to avoid spending on the card after transferring a balance to it.
Or if you’re looking for a card that offers a good rate on both, you might want to consider a 0% balance transfer and purchase by credit card.
What is the actual cost of the balance transfer fee?
Most credit card providers charge a balance transfer fee of around 3% when you transfer your debt from one card to another. It varies between cards and providers.
Since the fees are calculated as a percentage, the cost of the transfer fee will increase with the amount you transfer.
You transfer £ 1,000. The transfer fee is 3%.
It will cost you £ 30 to transfer your balance.
You transfer £ 2,000. The transfer fee is 3%.
It will cost you £ 60 to transfer your balance.
But don’t let the fees put you off. Even with the fees, you’ll likely pay less than your current credit card.
Some credit cards offer a discount on the initial balance transfer fee as long as you meet their terms and conditions. This usually includes paying your balance on time each month.
What is the APR?
APR is here to make it easier for you to compare credit card offers. APR stands for Annual Percentage Rate.
It helps you figure out what the credit card will cost you after your 0% introductory period is over. A higher APR means higher refunds.
It takes into account the interest rate and additional charges of a credit card offer.
You could get a higher APR than advertised
But the rate you see advertised is not necessarily the rate you will get. Credit card providers need only give the typical APR they advertise to about 50% of successful applicants. When you have had credit problems in the past, you may receive a higher APR.
Check that the rate you see displayed is the rate you will actually get to avoid a shock when your first statement arrives.
Are money transfers included?
Some credit cards with balance transfer will also include 0% on money transfers.
Money transfers allow you to transfer money from your balance transfer cards to your checking account. So you can pay off overdraft debt, not just credit card debt.
These offers will also come with a fee, usually around 4%, but this will vary from vendor to vendor. Check what the fees involved may include, as this could make your money transfer very expensive.
These balance and money transfer credit cards can be vital for debt consolidation in various areas. It might be worth considering if you have debt elsewhere and not just your credit card.
Find the best balance transfer cards
The best balance transfer credit card for you will depend on your needs. But to help you find the best deal, you should look for:
- Lowest APR
- 0 balance transfer fees
- Longest introductory periods at 0%
Also, think about other features you might need, including:
- Money transfers
- 0% purchases
Bad Credit Balance Transfer Credit Cards
Your options for balance transfer credit cards will be limited if you have bad credit.
Most credit card transfer transactions only accept people with a good or excellent credit rating.
You may be more likely to be approved for a credit card for bad credit.
What does “most popular” mean?
When we use the term “most popular” on Uswitch in reference to checking accounts, these accounts are ranked based on the number of clicks they have received on the site in the last 48 hours.
The most clicked accounts are at the top, the least at the bottom. This reflects their popularity with visitors to Uswitch.com. Therefore, this is a good table to look at if you want to know which checking accounts most people think are worth getting.