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Credit Cards - Balance Transfer Card

What is a Balance Transfer Card?

A 0% balance transfer credit card allows you to move interest bearing balances from other credit cards onto a deal where you pay no interest at all for a given period from when your card account opens.

Not all cards start the clock ticking on balance transfer deals from the same date - some will apply from the date the card is issued, some from the date of the first transfer. To get the longest term go for a card deal that waits until the money hits your new account. Whatever the deal, transfer your balance as soon as you can to save interest on your current card.

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Who are they suitable for?

A 0% balance transfer card is suitable for anyone who is currently paying interest on outstanding credit card balances.

• Every monthly payment you make to your credit card provider reduces your debt which has to be a good thing.
• If you still have outstanding balances at the end of your introductory period, shift them on to another provider. Make sure you apply about 6 weeks before the period ends so your new account is all set up and ready.
• Take a look at our 0% balance transfer credit card best buys for the best deals around. You can find all the cards that don't have a balance transfer fee by using the credit card product search.

What should you look out for?

• Don't use your 0% balance transfer credit card for retail purchases. Most providers of credit cards charge interest on the lowest interest earning amounts first.
• If your retail purchases are charged at 15.9% and you have a 0% balance transfer rate, your repayments pay off your transferred balance first leaving your interest bearing purchase transactions outstanding on your account, slowly racking up interest for you.
• You will be charged a fee, usually in the region of 3% for transferring the balance. This allows the provider to make their money up front.

 
So you can understand the ins and outs of credit cards, Moneyfacts.co.uk has put together guides on things to watch out for and the key factors to consider when purchasing a card.

If a 0% balance transfer card isn't for you, we've got guides and best buy tables for retail purchase credit cards, rewards credit cards, donation credit cards, cashback credit cards and overseas usage credit cards.
 
What to do next
 
Take a look at the latest credit card best buy tables to check the latest rates and deals on offer.