0% credit cards

What are 0% balance transfer cards?

These types of deals have been very popular over the years and can save you huge amounts on interest payments if managed correctly. If you have existing credit cards and are paying interest then consider carrying forward the balance to a card with an introductory interest free balance transfer offer.

Simply by switching the balance to a 0% credit card and paying off as much as you can every month, can save you hundreds of pounds, the more you can pay during an interest free period, the more is paid of the actual capital balance owing. Many people make the mistake of taking out a 0% card and paying the minimum amount each month to keep monthly outgoings low, ok seems fare but once the interest free period comes to and end the payments increase considerably and you have actually not reduced the balance by much, pay more, save money and reduce the amount you owe. Some credit card companies will even allow you to transfer balances form other types of debt i.e. overdrafts and loans.

Please be aware that some companies will charge a transfer fee when switching the balance form one credit card to another, this fee can be up to 3% of the balance, there are still some offers where a transfer fee does not apply, shop arund for the best deals before making final decisions. If yo choose a deal wheer the 0% introductory offer only aplies to balance transfers, don't be tempted to make new purchases on the card, some cards do offer 0% on purchaees and transfers. Many credit companies add new purchases to the back of the debt owing, this ultimately means that the debt grows as the interest is higher on this part of the debt and if yo are not careful then this can outway the interest free period and defeats the object of switching.

When your interest-free period is up, if you have not cleared the full amount owing switch your remaining debt to a new balance transfer card and repeat as required.

Make sure to apply for your new 0% card at least six weeks before the introductory period on the old card expires, this way you can be sure that the new card arrives before the existtng card starts adding interest.

Compare 0% balance transfer credit cards at Pricefilter.co.uk

© Upshot Media Ltd

Disclaimer: Please note the above article does not constitute financial, credit or any other advice, we suggest that if you are unsure you take independent financial advice or conduct your own research. Rapid Retail Direct Ltd and pricefilter.co.uk can not be held responsible for any decisions made from reading this article.