Moving expensive borrowing to a 0% balance transfer card is a great way to cut your costs and repay your debts quicker. Here’s how to choose the best 0% balance transfer credit cards on the UK market.
If you are paying hefty credit card interest rates and want to move your outstanding borrowing to a cheaper home, one of the 0% balance transfer offers available from balance transfer credit cards could be right for you.
0% balance transfer cards allow you to shift expensive credit card borrowing to an interest free home for a set number of months in return for a small transfer fee.
The main benefit of a 0% balance transfer credit card is that it allows you to repay your credit card balance without charging you any interest, so you get the opportunity to clear your outstanding balance much quicker.
Subsequently, finding the best 0% balance transfer credit cards for your circumstances will depend on how long it will take you to pay off your existing credit card borrowing.
Start by working out how much you can afford to repay each month, then from this how long it will take you to repay your borrowing completely.
Once you've done this all you have to do is look for the credit cards 0% balance transfer periods that give you enough time to repay what you owe completely before the 0% interest rate ends and you're charged interest.
It's worth bearing in mind that some providers don't allow you to make a 0% balance transfer between cards they offer. As such you may have to exclude credit cards from your existing credit card provider, i.e Halifax or Barclaycard, from your search.
Once you have a list of suitable zero balance transfers credit cards, compare the balance transfer fee applied to each and find the card that costs least to use.
Double check that you meet the card's eligibility criteria and then apply. You'll be able to arrange the balance transfer as part of the application process and doing this will help you to maximise the amount of months you have interest free.
After you’ve completed a 0% balance transfer it makes sense to stick to a repayment plan to clear the balance before the end of the 0% period, fail to do so and you’ll start being charged hefty interest rates once again.
If you cannot find a card offering 0% on balance transfers for a long enough period for you to clear your debts completely then you will either need to move your borrowing to a new 0% balance transfers credit card after the 0% period ends or consider using life of balance transfer card instead.
You can compare 0% balance transfer credit cards and their features and charges side by side using our credit cards 0% balance transfer comparison table.