Balance transfer cards allow you to save money by transferring your balance to a 0% balance transfer card if you are paying interest on a sizeable credit card debt. If you have a large credit card debt which is gaining interest, then you can transfer your balance over to a balance transfer credit card.
With the increase of these cards on the market there are more offers and incentives, such as a 0% introductory balance transfer period. Make sure you look at our comparison chart so that you choose the best transfer card for you.
Many of these card lenders will charge a fee when you transfer your funds onto the balance transfer card, however, there are a few who charge nothing. Before making your choice, consider which card will allow you to erase your debt faster, and whether the fee will add to your debt rather than help you cancel it out.
When it comes to balance transfer cards, there are a few rules that you must stick to in order to maximise the effectiveness of this type of credit card.
Be mindful of the 0% interest rate and how long it will apply to you and your funds. Make sure to either cancel out your debt before this period ends or change accounts to avoid your costs skyrocketing.
If you are unable to pay off your debt within the 0% period at least pay the minimum monthly required amount to keep the lower rate until you swap accounts.
Paying off your card in full each month keeps the interest at 0%, so make sure to avoid spending on this kind of card, only transfer and pay off preexisting debt.
Watch out for the fine print of any card, especially a balance transfer card, as the offer advertised may change depending on your credit score. For example, the time frame within which the 0% interest applies may change from what is advertised and fees may change as well.