If you are struggling with paying off your debt, you should at least consider applying for a 0% balance transfer credit card. Doing so could end up saving you hundreds or even thousands of pounds. These cards have helped countless people in the UK get out from under their debt faster than they otherwise would have. We will thoroughly review these credit cards in this article, providing you with all of the information you need to make the right decision.
The Basics of Credit Card Balance Transfers
Once you have gotten your application for a 0% balance transfer card approved, all of your debt will be paid off by your new card provider. After the debt has been officially taken care of, you will be able to close your previous account if you so choose. If you decide to close the old account, you will be required to pay a small fee of three to six percent of the total amount that has been transferred.
You will need to submit monthly payments to the new provider to pay off your debt, but with no interest for a certain period of time. Depending on the card you get, you could be making interest-free payments for up to one year. It is important that you look at the details of each card to find out how long the 0% introductory period is. Your provider will let you know when this period is going to expire.
Finding the Right Balance Transfer Card
Before you apply for a single balance transfer card, you will have to look into your options. There are lots of these cards that you can get, but not all of them will provide you with a great overall deal. Take the time to find out how long the introductory period is for each card.
Transferring Your Balance
After you have taken the time to find the right credit card and received approval from the provider, you can transfer the balance from your old card. When you apply for the card, you will have to tell the provider how much you want to transfer and give them other relevant information. Filling out one of these applications usually doesn’t take very long. Transferring your debt to your new card shouldn’t take more than a few business days.
Transferring Your Balance to Another Person’s Card
There are some credit card providers that will be willing to let you transfer part or all of your balance to another person’s card. This could be your spouse, a friend or family member. If you are planning to do this, it is important to find someone with good credit. The better the person’s credit is, the lower your new interest rate will be after the introductory period has expired.
It is very important that you think carefully before transferring your credit card balance to another person’s card. If you fail to make your repayments, the other person will be required to take them on until your debt has been completely paid off.
One of the best things about using a balance transfer card to take care of your debt is that you won’t have to pay any interest for the duration of the introductory period. You must remember that this period is only for a limited time. After the promotional period is over, you will have to start paying interest on your repayments. The amount of interest that you pay will depend on the state of your credit. It is a good idea to take a close look at your credit rating before applying for a balance transfer card.
Is it Worth the Transfer Fee?
There are a couple different questions that you will need to ask yourself before deciding whether or not a balance transfer card is worth the fee you will have to pay. There are some balance transfer cards that don’t require you to pay a fee, but most of them do.
The first thing that you have to consider is what your interest rate will be after the introductory period. If you are going to spend more with the transfer free than with your total interest, it probably isn’t going to be worth it. You also have to think about whether or not you will actually save money by keeping your balance on your current card.
One of the other things that you will need to consider before applying for a balance transfer card is how doing so will impact your credit. A majority of these applications are classified as hard credit inquiries, which means that your credit will take at least a small hit. Make sure that you don’t apply for more than one card within a two or three month period.