Credit Card Questions & Answers

Is it okay to spend on a card that I am using for a life of balance transfer?
You should avoid spending on a card that you are using for a life of balance transfer, otherwise you could end up paying a lot of interest on your debts, even with the low interest rate that is being offered on your transferred balance.

Credit card providers will often apply payments towards lower or promotional rate balance first, leaving any non-promotional transactions, such as purchases or cash withdrawals to accrue interest until the cheaper balance transfer is repaid first.

You should try and use your life of balance transfer credit card only as a tool for repaying your current outstanding card debt.

How much would the minimum monthly repayment be on a life of balance transfer offer?
The minimum monthly repayment on a life of balance transfer credit card would be based upon the balance outstanding on the account and the actual minimum repayment rate as laid down in the terms and conditions of the card.

Minimum repayment rates are charged as a percentage of the balance owed, and this can be 2%, 2.5% or 3% depending upon the card.

This equates to around £150 repayment on a balance owed of £5,000 – based on the higher 3% minimum repayment rate.

When you say life of balance transfer how long is that?
Life of balance transfer credit cards offer a low rate on the balance moved over from your current credit card until it is repaid in full. So the ‘life’ period refers to the life of the balance.

While life of balance transfer offers do not give a 0% rate, they do offer the benefit of removing any ending promotional period to worry about, giving you the peace of mind of a low interest rate until you are able to clear your outstanding debt in full.