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A. Many credit card providers allow cardholders to transfer an amount of their credit limit to a current account - this is often termed a 'money transfer'.
Money transfers are often subject to the same interest rates and fees as cash transactions - and they can be so expensive it is unadvisable to do them.
However, a limited number of credit card providers offer 'transfers to a current account' as part of their 0% balance transfer credit card promotion. Allowing you to move your credit limit to your current account and get 0% for an introductory period on this transaction.
Current account transfers can be useful for repaying non-credit card debts, such as overdrafts or small loans. When offered at 0%, they can also be used for 'stoozing' where arbitraging the interest rates charged on your credit borrowing and a savings account to make a profit. Read the full answer » |
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A. 0% balance transfer credit cards require you to pay at least the minimum amount each month to retain the 0% deal and to avoid any missed payment charges.
The minimum monthly payment on a 0% balance transfer credit card is the same as any non-promotional credit card, varying from around 2% to 3% between card issuers.
For a balance of £2,500 you should expect to pay back at least £75 each month based on a 3% minimum repayment. Read the full answer » |
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A. Spending required balance transfer deals are somewhat of a ploy implemented by certain credit card companies to claw back lost profits from 0% deals.
These deals basically require you to create a purchase balance on your account to gain the full length of the 0% balance transfer offer.
What then happens is that the new purchase balance attracts interest charges while the allocation of payments terms and conditions clause stops you from repaying this (or these) purchases until you’ve first repaid all of your transferred balance. Read the full answer » |
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A. 0% balance transfer credit cards may no longer be the new craze of the financial world – but their popularity has yet to abate and neither has the competition between the credit card companies.
When 0% balance transfer credit cards first hit the newspapers, TV adds and Internet sites – you'd of been a very happy customer to get zero interest charges for 6-months.
Nowadays however 0% balance transfers are now reaching the 15-month mark and the market-norm has become an offering of 12-months. Read the full answer » |
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A. Balance transfer handling fees - or transfer fees for short - were introduced by credit card companies to recoup lost profits from 0% rate offers. It’s now become a real rarity to find any 0% offer without a transfer fee – and when you do, the 0% period tends to be no longer than 6-months max.
Transfer fees can be avoided – however you need to weigh up the pros and cons of either avoiding a transfer fee by transferring to a low rate for life, or very short 0% period – or paying a transfer fee but getting a 0% deal lasting for a year or more. Read the full answer » |
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A. How much you can transfer onto a 0% balance transfer credit card is mostly limited by the credit limit offered when you open the account.
However some offers may also limit the amount that will qualify for the 0% rate, for example up to £5,000 or up to 95% of the credit limit. Read the full answer » |
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A. Yes, 0% balance transfer credit cards can be used to clear up debts running over multiple card accounts.
However, even though you can transfer balances from as many cards as you wish – you may be limited by the credit limit granted on the new 0% balance transfer credit card, as you will only be able to transfer an accumulated amount up to this limit. Read the full answer » |
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A. Generally speaking the amount you can transfer onto a 0% balance transfer credit card will be determined by the credit limit granted by the new card issuer.
However, some 0% balance transfer credit cards will only allow you to transfer an amount up to a certain percentage of your credit limit, e.g. 95% of your credit limit. Alternatively, they may cap the amount that will qualify for the 0% rate, for example the first £5,000. Read the full answer » |
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A. Stoozing is a cunning way to make money from a 0% interest credit card without having to do anything other than either spend on the card or transfer funds from the card into a high interest savings account.
However, stoozing does require you to be extra organised and responsible with your finances. Read the full answer » |
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A. It may seem an obvious assumption to make – it's a credit card, why wouldn't it be suitable for using to pay for new purchases? However, the main potential rate-trap – the one used to lure unsuspecting customers into paying for "the champagne at the shareholders meeting" – of 0% balance transfer credit cards is the one thing you’re most likely to do – is spending. Read the full answer » |
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A. Rate tarting is where you regularly transfer your credit card balance from one card to another as the interest free periods come to an end in order to avoid paying any interest on your credit card balance. Read the full answer » |
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A. When it comes to making cash transactions there are a number of reasons why you should avoid using your 0% balance transfer credit card. Read the full answer » |
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A. Transferring existing card debts to a 0% balance transfer credit card will offer you a valuable period of time where you will be charged no interest on your credit card debts, giving you the time to pay off your outstanding balance without having to struggle against accumulating interest charges. Read the full answer » |
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A. The process of transferring existing credit card balances on to a new 0% balance transfer credit card can be quite straightforward, and there are a number of ways in which you can do this. Read the full answer » |
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A. All credit cards require you to pay at least the minimum payment amount each month when you have a balance outstanding on the card. Read the full answer » |
