|
0% balance transfer credit cards provide credit card users with the chance to save a small fortune on their repayments.
If you currently have outstanding credit card balances you could save a lot of money in interest charges by moving those balances onto a 0% balance transfer credit card.
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.
In order to maximize on savings you need to:
- Find a 0% balance transfer card that offers a reasonable interest free period
- Transfer existing credit card balances onto the new credit card
- Repay the debt in full within the interest free period
How do 0% balance transfer credit cards work?
There are many credit card companies that now offer 0% balance transfer credit cards, and these cards will allow you to transfer balances from your other credit cards subject to the credit limit that is set on the new card.
So, if you have several credit cards with balances on which you are being charged high levels of interest you can transfer them all onto a 0% balance transfer credit card, providing the total transfer amount falls within your given credit limit, and you can then enjoy an interest free period within which you should try and pay off as much of the debt as possible.
How can I make the most from a 0% balance transfer?
Once the interest free period on your 0% balance transfer credit card has expired you will be charged standard interest on the remaining balance, which is why it is important to try and clear the whole debt within the interest free period in order to make the most of the credit card.
The interest free period can vary from one card issuer to another, so it is well worth comparing different 0% balance transfer credit cards to see which offers the longest interest free period - the longer the 0% interest period the more time you will have to clear your debts without incurring interest charges.
Transferring your balances onto a 0% balance transfer credit card couldn't be easier, and you can do this by providing your new card issuer with details of your other credit cards and balances, which will then be paid off by the new card issuer.
Your existing credit card debts will then be transferred over to the new provider, and you will then start making repayments on your new card, as the old cards will have had their balances cleared.
You should aim to pay off as much as possible on the new card each month, as this will enable you to clear your balance within the interest free period, which in turn means that you will make the maximum savings on interest.
Compare 0% balance transfer credit cards
 Back to 0% balance transfer FAQs
Back to FAQs & Guides
|
