Continuous Balance Transfers


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So, what is you get to the end of your 0% term, could you arrange again for another balance transfer to make sure than you still won't be paying any interest?

In theory this is a possibility, but there are factors that need to be considered before going ahead with another balance transfer such as:-

1) Is the balance transfer fee more than the interest you would be charged before you manage to clear your balance?
2) How much credit do you currently have in your name and how recently did you apply for you latest item of credit.
3) If you already have another credit card and the balance is clear, would they be willing to offer you a 0% rate on a transfer meaning that you would not need a new credit card?
4) Are you planning in the near future to apply for a mortgage, further advance or loan or another form of additional credit?

The reason for asking the above is that the more available credit you have in your name, (even if on a credit card your balance is cleared in full every month) the higher the risk that you could run all your balances to the maximum if you were to go into financial difficulty. In most cases this is not an event that ever happens but from a credit providers point of view this is always a potential risk.
If on your credit history you have recently applied for additional credit and then go to apply for more it might be seen as a sign of you are going into financial difficulty. Due to this credit providers may actually decline your application, even if that isn't the case at all.
This is why making balance transfers between existing cards is usually a better option as you may still get the offer of a 0% transfer so you will be better off, without actually taking on any more forms of credit and risking how your credit history appears to potential credit providers.
This is especially important if you are looking to move home, take out a further mortgage advance, switch mortgage companies or make a new car purchase in the near future, if so applying for additional credit now may really not be the way to go as you don't want to risk a more important credit application being declined.

You may think that as long as you never miss a payment or are late on payments that your credit history will be viewed as good. This is certainly a big factor on how your history is viewed but the amount of credit which is existing in your name, along with how much is available to you without making an application is also considered (ie: the total of your available credit limits on credit and store cards).

This doesn't mean that switching outstanding balances on a regular basis is a total no no, more that you have to consider how this will be viewed by potential credit providers. You may actually be able to switch between your existing cards once to each over a period of 12 to 18 months but after that you may risk not being offered a 0% rate at all. So it is probably best to make sure you clear you balances in the shortest time available so as not to end up being faced with a scenario where you will be being charged a high interest rate.

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