How to Use a 0% Balance Transfer & Purchase Credit Card
0% Balance Transfer & Purchase Best Buys
0% Balance Transfer & Purchase FAQ's
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0% balance transfer and purchase credit cards can save you a whole heap of money.
Not only that, but they completely remove either the bother of having multiple cards - one for your balance transfer and another for your purchase spending, or the worry of being caught out by the sneaky interest trap-in's that are so often found on 0% balance transfer credit cards.
What makes 0% balance transfer and purchase credit cards so useful, is the ability to clear up existing credit card debt to a 0% introductory rate, whilst also being able to simultaneously enjoy a 0% rate on your purchases for the same length of time.
However, to really make the most of these cards, and also to avoid any potential pitfalls, it's important to really understand how to use a 0% balance transfer and purchase credit card.
Make the most of your credit card...
- Move quickly
0% balance transfer promotional rates will often only allow you a short window-period in which to make the transfer to qualify for the promotional rate.
Whilst the entire length of the combined 0% offer may be as long as 10 months, the window period in which to get this offer might be as short as 30 days.
Play it safe and transfer your balance during card application, or if you cannot do this, transfer it as soon as you receive your new card through the post.
- Know how to make the transfer
You can actually transfer your balance to your new credit card via several different methods.
The first, and probably easiest, is during card application - which, not only saves you time and hassle, but makes sure that you don't miss the window period in which to qualify for the promotional rate.
Balances can also be transferred using the balance transfer forms sent out with your new card, and also via online or telephone banking too.
- Make your purchases soon after you get your new plastic
If you are taking out a 0% balance transfer and purchase credit card to pay for a large item, you should try and purchase the item as near to opening your new card account as possible.
The 0% purchase period will run from the day your account is opened, and not from the day of your first purchase.
The sooner you make your purchase, the longer you'll have to repay it whilst enjoying a 0% interest rate.
- Use the 0% period wisely
Using a 0% balance transfer and purchase credit card wisely is all about not paying any interest - and that comes down to repaying the balance before the 0% period ends.
Don't wait around until a month before your 0% period ends.
Budget your income and repay as much as you can comfortably afford to each month.
- Be cautious of being too much of a tart
While moving from one 0% card to the next may seem like a tempting proposition, in practice the reality is a lot different.
Not only do you never repay your credit card debts, but also card issuers are cottoning on to rate tarts - even sharing 'white data', making it harder for people to continually shift debt from one 0% card to the next.
Things to watch out for...
- Cash transactions
Cash transactions are never included in 0% promotional offers.
Like all 0% credit cards, 0% balance transfer and purchase credit cards are not suitable for cash transactions.
Using a 0% credit card for a cash transaction will not only incur handling fees and high interest charges, but it will effectively destroy your '0%' credit card.
Any cash transaction will accrue interest charges on your account, and any payments you make will go first to your 0% balances - leaving any cash transactions to languish in the realms of high interest.
Remember, cash transactions include ATM withdrawals, getting 'cash back' at the supermarket, buying foreign currency or traveller's cheques and gambling transactions.
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