Credit Card Balance Transfer Options

Back to Credit Card Balance Transfers.

Making a Credit Card Balance Transfer can be really cost effective and in some cases can save you hundreds of pounds.

Most of us would only consider doing a Credit Card Balance Transfer if we have run up debt on another credit card, but there are other ways that balance transfers could be cost effective for you.
For example if you want to make a purchase for which you would normally look to take a 12 month loan for, you could (if you already have at least 2 credit cards) contact your credit card companies to see who is offering any special offers for balance transfers. Don't assume that if there is an offer it will be on your statement as this is not always the case and you could miss out if you were to assume this as being correct.

When you have spoken to your credit card companies see who is offering the best deal, some may offer 6 months interest free, 9 months interest free, 12 months interest free or a low percent rate for the life of the balance.
Then consider how much a loan would have cost you and always make sure you include any set up or completion fees into this.

If it then works out that your credit card (even with the balance transfer fee included) is cheapest then make your purchase on one of your other cards then transfer it over onto the best balance transfer card.
You must then make sure that you do not use this card until your balance transfer has been cleared as otherwise the balance which has been transfered will be paid off first leaving any purchases you have made to incur interest and this could be costly. If you have any other purchases to make, do them on one of your other credit cards and leave the one you transfered the balance too well alone until you have cleared it in full.

Also, as with a loan set up a direct debit to your credit card, make sure that this is set up for a date which will leave plenty of time for it to reach you card by the payment date, and make sure that you calculate your payment to ensure that the balance transfer is cleared in full before the end of the interest free period.
Basically what you are doing is securing yourself a low rate loan, it may not seem like that as it is on a Credit Card but that os actually what you are doing, you are taking charge of your finances and making a cost effective money saving decision.

Back to Credit Card Balance Transfers.

Updated on 14th May, 2009

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