What is a balance transfer card?
A 0% balance transfer card lets you transfer the money you owe on one credit card to another, whilst avoiding interest charges for a fixed term.
A 0% balance transfer card can help you repay your debt quicker by eliminating interest.
Try and avoid using one deal after another if you know you won't be able to repay the debt, and consider an alternative way to get debt free instead.
No, do not transfer a balance an existing credit card unless it offers a 0% deal that is better than elsewhere.
If you aren't offered a 0% deal you will still pay interest and possibly face a charge for moving the balance across too.
Why avoid 0% balance transfer cards?
Here are several reasons why applying for a 0% balance transfer card may not benefit you:
You have poor credit and could get declined, further damaging your credit record
The transfer fee could cost than the interest you would save
You don't have a balance to transfer across
No, but you can close your old card after the balance transfer is complete. If you transferred the whole balance out, there could still be interest charges to pay.
What happens if you don't repay the balance?
If you have an unpaid credit card balance, it will not negatively affect your credit record unless you miss a monthly repayment.
Your provider could also cancel any 0% months you have left if you miss a payment.
However, if you make the minimum payment at the very least each month, it can have a positive affect on your credit record.
Only if you pay interest on your credit card balance. A balance transfer deal could make your monthly repayments cheaper by cutting out interest.
Why get a 0% balance transfer card?
Here are some reasons why applying for a 0% balance transfer card could benefit you:
Your balance won't have interest added each month
Your monthly payments will pay off your balance quicker
You monthly payments could reduce
A 0% balance transfer card could save you hundreds of pounds in interest charges, especially if you have a large balance on your card.
Yes, but look for one with no fee balance transfer fees and a 0% deal for the term you want, e.g. 12 months. Compare balance transfer deals here.
What balance transfer cards are there?
Most credit cards let you transfer a balance, but some will charge you. The difference between balance transfer cards is:
The balance transfer fee
The term of the 0% deal
The amount the card lets you transfer
When you apply for a new credit card, the provider runs a credit check and assess your income to work out what credit limit you can have.
Can you get 0% on balance transfers for the entire term?
You can normally only get 0% on any balances you transfer across within the first few months. Check with the provider before you apply.
