How to Use a No Fee Balance Transfer Credit Card

No Fee Balance Transfer Best Buys No Fee Balance Transfer FAQ's Have a question? Send in your question and we'll do all we can to help answer it. Where appropriate user questions will be added to the FAQ's for future use. Most recent questions: Which is better a no fee balance transfer or a 0% rate? More frequently asked questions »

- Budget your income so you can start to repay your balance transfer
No fee balance transfer credit cards offer a great way to get back on top of your finances and start repaying your outstanding credit card debt.

Not only will they save you money in transfer fees, but you'll also stop running up huge bills in interest charges while you are repaying your balance.

The best way to make good use of a no fee balance transfer credit card is to budget your income each month so that you can begin to clear your outstanding balance transfer.

By repaying a decent, but comfortable chunk each month, you'll soon see your outstanding balance reducing.

- What if I need to make new purchases too?
If you need to make new purchases on credit too, you should make sure you are using a no fee balance transfer credit card that is also suitable for purchases.

Due to the way payments made to your card are usually applied to promotional or lower rate balances before standard or higher rate balances, using a no fee balance transfer credit card for purchases can mean that your purchases are left unpaid, accruing interest charges until you have first repaid your balance transfer in full.

However, if you use a no fee balance transfer credit card that offers the same promotional rate and period for purchases as it does for balance transfers, you will be able to repay both balances without getting stuck in hefty interest charges.

Remember it's never a bad idea to simply play it safe and use a seperate credit card - or a debit card - for purchases, such as a standard low interest rate credit card or a promotional 0% purchase credit card.

- Avoid cash transactions
For the same 'allocation of payments' reason for purchases, cash transactions should also be avoided on all no fee balance transfer credit cards, and in fact, any balance transfer credit card.

Cash transactions will be subject to higher interest rates and handling fees, and you will not be able to repay them until you have first cleared your balance transfer.

Cash transactions include withdrawing cash at an ATM machine, getting 'cash back' at the supermarket, buying foreign currency or traveller's cheques and also gambling transactions.

Try and use your debit card for any cash transaction that you need to make.

Make the most of your card...

- Transfer your balance as soon as you can
Make the most of the promotional balance transfer rate by transferring your existing credit card balance to your new no fee balance transfer credit card during card application.

If you are unable to transfer your balance during card application, remember to do it as soon as you can once your account is opened.

Transferring your balance quickly will mean that you will benefit from 0% or lower rates of interest sooner, saving yourself money in interest charges.

- Set a date in your diary if the promotional rate ends
If you choose a no fee balance transfer credit card that offers an introductory rate on your balance transfer, then remember to set a date in your diary for when the promotional period ends.

Knowing when the promotional period on your no fee balance transfer credit card ends can help you to either know when to re-move your balance to another balance transfer credit card, or will let you know how long you have to repay your balance in full.

Compare no fee balance transfer credit cards