Many people attempt to beat credit card bills by transferring balances from one card to the next to get a limited time offer of 0% interest. Sometimes there are also perks to making the transfer, such as air miles, bonuses, cash back, or even gifts. This is a great plan in theory as it could save you hundreds or even thousands of pounds.
First, I’m guessing that you understand how credit cards work. Say you are currently paying 20% on a card (I sincerely hope not but it keeps me from doing difficult sums!). For every pound you spend, you pay the credit card company the pound plus an extra 20p. So, if you happen to owe £100, you will give the credit card company £120.
With the global economy in its current state, many people are doing balance transfers to save themselves from serious financial difficulty. I’m sure you get oodles of credit card offers in the post. Instead of tossing them in the shredder, read them. Some have great low interest rates while others are so absurdly high that you will be thrown into gales of laughter.
If you want to look into balance transfer, here are some things you definitely need to look for.
- Percentage charged on balance transfers
- Length of time for low or 0% interest rate
- APR after the offer expires
- Terms and conditions
Also be aware that with many card companies becoming huge conglomerates, a new card offer may come from a division of a company you already use. If that’s the case, they will not issue a new card.
As always, check out our Top Ten Deals!
Tags: balance transfers, credit card
