Credit Card Questions & Answers

Related FAQ's Q. How much can I transfer? 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. Q. How can I transfer my balance? 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. Q. How much will I have to repay each month if I use a 0% balance transfer credit card? 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. Q. Why do I have to pay a transfer fee? Can I avoid paying it? 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. Q. What is rate tarting? What should I be aware of when rate tarting? 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.

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.

More information on 0% balance transfer credit card limits can be found in our FAQ on: How much can I transfer?

0% balance transfer credit cards
0% balance transfer credit cards have proven very effective for cardholders that want to avoid paying interest on their existing credit card balances, as it enables them to transfer their existing balances and enjoy an interest free period during which time they can clear the debt without incurring further interest charges.

With 0% balance transfer credit cards there are a number of things to bear in mind, which include:

• You can transfer existing credit card debt up to the credit limit on the new balance transfer card.
• You can transfer debts from multiple credit cards providing the total amount transferred does not exceed your new credit limit.
• You should not use your 0% credit card to make purchases unless it also offers a 0% purchase feature.
• You should pay off your total transferred balance within the interest free period to avoid being charged interest on your debt.

Making the most of your 0% balance transfer credit card
If you are currently lumbered with credit card balances on which you are being charged high levels of interest, a 0% balance transfer credit card could be the perfect way to make savings by avoiding further interest charges on your credit card balances.

The good news is that, providing you do not exceed the credit limit on your 0% balance transfer credit card, you can transfer balances from as many cards as you like, so if you are currently struggling to repay balances on a number of high interest cards you can simply transfer all the balances on to your new card, subject to your credit limit, and enjoy one convenient repayment each month, as well as saving a fortune on interest.

Be careful with new spending
You should bear in mind that, unless the credit card specifically offers 0% on purchases as well as on balance transfers, you should avoid using it for anything other than to pay off your transferred balances, as you will otherwise be charged high levels of interest on your purchases, which will counteract the benefits of having 0% on your transferred balances.

Even if you're offered 0% on purchases, this is often for a far shorter period than the 0% on balance transfers, and any repayments you make will be applied to the transferred balances first, leaving the purchase balance to start accruing interest when the short interest free period expires.

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