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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.
When it comes to transferring your credit card balance there are a few things to bear in mind:
- You can only transfer an amount up to the credit limit that is granted to you on the new 0% balance transfer credit card.
- You can transfer balances from different cards providing that the total amount transferred does not exceed the credit limit on the card.
- It is important to ensure that you repay the transferred balance within the interest free period to avoid being charged high rates of interest once the interest free period expires.
0% balance transfer credit cards
0% balance transfer credit cards have become very popular amongst consumers that want to save money on interest charges when it comes to their credit card debt.
You can save a small fortune by transferring your balance and getting it repaid within the interest free period.
How much will my credit limit be?
The amount that you can transfer onto a 0% balance transfer credit card is actually up to the credit card issuer essentially, as it is the issuer that determines what the credit limit on your card will be, and therefore how much you can transfer.
The decision on your credit limit will be determined by a number of factors, including your income, outgoings, credit history, financial and employment status, and age.
By, beginning the process of transferring your balance when you apply for the new 0% balance transfer credit card, the card issuer will know how much you want to transfer – and may then grant a credit limit to cover that amount.
What if the credit limit is not enough?
If you are only granted an amount of your outstanding debts you should still transfer as much as you are allowed to. Doing this will mean, that although not all of your outstanding card debt is at 0% - a good amount of it will be, and you’ll still save money in interest charges on the amount transferred.
Can I move balances from multiple credit card accounts?
Yes, you can transfer balances from multiple cards providing the total amount of the transfer does not exceed the credit limit on your 0% balance transfer credit card.
How do I transfer my balance?
Transferring your balances is a straightforward process, and can be done in a number of ways, the easiest being to provide your other credit card details to the new card issuer who will then arrange repayment of your existing credit card debts and transfer the balances on to the new card.
How should I use the 0% balance transfer deal?
You should bear in mind that some 0% balance transfer credit cards charge a higher than average rate of interest on any remaining balance once the interest free period expires, and therefore it is important to ensure that you can repay the transferred balance within the 0% interest period.
However, if you have a good credit rating you may be able to do a little rate tarting, where you can transfer your balance onto yet another 0% balance transfer credit card when the interest free period on your current one is due to come to an end.
Also, remember to be aware of the 'allocation of payments' clause - that states the order in which balances on your account will be repaid. This means avoiding cash transactions, such as ATM withdrawals, foreign currency purchase and gambling - as these transactions will incur interest charges and you will not be able to repay them until you've first repaid your balance transfer.
The same often applies to new purchases on a 0% balance transfer credit card too - so remember to transfer your balance and then hide the card away in the back of a drawer - focus on repaying your balance and use your debit card - or a seperate credit card - for any new purchases or cash withdrawals.
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