Have you got an outstanding balance on a credit card that’s draining your monthly spending money with high interest rates? You’re not alone. Over the past few years, balance transfer credit cards have become one of the most popular types of credit card in the UK. Many people have found that they can save big money by transferring the carried balance from a high interest credit card to one that offers low or no interest on balance transfers from other cards.
Sounds like a great deal, doesn’t it? Trade in the 15.4% interest that you’re paying for 0% interest for 9 months – who wouldn’t jump at the bargain? Before you dive for the first balance transfer credit card you’re offered, though, take a few tips from finance experts.
1. Credit card companies are becoming increasingly wary of credit card jumpers – those who shift their balance from card to card when the interest free period is up. To combat those, they’ve come up with different structures for their balance transfer credit cards. Be sure to read all the fine print of your credit card agreement carefully so that you know exactly what you’re getting when you transfer.
2. When you have a choice of several balance transfer cards that offer 0% interest for the same length of time, look to other terms to help you choose between them. In fact, when you compare balance transfer credit cards, there are several things you should be looking at.