How to Compare 0% Balance Transfer & Purchase Credit Cards: part 2
0% Balance Transfer & Purchase Best Buys
0% Balance Transfer & Purchase FAQ's
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0% balance transfer and purchase credit cards offer a nifty way to clear up any outstanding credit card balances, whilst also allowing you to use your new plastic for purchase spending too.
When comparing 0% balance transfer and purchase credit cards, to make sure you're getting the best deal - and thus saving yourself the most amount of the money - there are several points that you should look for, and certain points that you should watch out for too.
What to look for...
- The longest 0% period
Choose a 0% balance transfer and purchase credit card offering the longest 0% period.
The longer the 0% period on offer, the more time you have to repay your balance transfer, and any purchases you've made too - whilst enjoying the benefit of no interest charges.
0% interest rates allow you to really make a dent in your outstanding balance, as all of your payment is going towards your principal balance and not to any interest charges - allowing you to repay your credit card debts much quicker.
The longer the 0% period is, the more time you have to benefit from really knocking chunks off your credit card balance.
Currently, the longest equal length 0% balance transfer and purchase deals can be found on the Capital One Platinum credit card (9 months).
What to watch out for...
- Balance transfer handling fees
The days of free transfers are nearly all but over.
When you transfer a balance to a credit card offering a 0% promotional rate on the balance, you will usually be charged a handling fee to do it.
This handling fee will usually be around 2% - 3% of the amount you are transferring.
Don't be too put off by these fees though, the interest charges on a standard credit card would meet the same cost as the transfer fee in around 2 months - and with up to 9 months of interest free credit - the money saving benefits of moving to a 0% deal far outweigh the small cost involved.
- Cash withdrawal rates and fees
Not all transactions will qualify for the 0% period, and cash withdrawals are one of them.
Use a 0% balance transfer and purchase credit card for getting your mitts on some cash and you could pay dearly for the privilege.
Cash withdrawals not only carry handling fees and higher interest charges, but your card issuer will always allocate your payments to your 0% balances first, leaving any cash transactions to accrue interest charges until you have first repaid your 0% debt.
Remember, cash transactions include more than just ATM withdrawals - they also cover getting 'cash back' at the supermarket, buying foreign currency or traveller's cheques and gambling transactions.
Don't forget!
- No interest doesn't mean no payments!
0% balance transfer and purchase credit cards still require you to make at least the minimum monthly payment.
If you fail to make a payment, or your payment is late, you are likely to lose the 0% rates altogether.
- Don't waste time!
Promotional balance transfer offers usually offer a window period in which you can transfer a balance and receive the promotional rate.
This 'window-period' can be up to 3 months, however, sometimes it is only 30 days. Move quickly and transfer your balance as soon as you can so you don't lose out on the 0% offer.
Play it safe and transfer your balance during card application, not only will it save you time, but you'll be guaranteed not to miss the window period.
If you can't transfer during application, do it as soon as you receive your new plastic through the post. You can often use the balance transfer forms sent out with your new card, or you can always transfer your balance via online or telephone banking.
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Compare 0% balance transfer and purchase credit cards
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