O% Balance Credit Cards – A quick overview

O% Balance Transfer Cards – Why would I want one?

If you currently owe money on one or more credit cards consolidating your debts to a O% balance transfer credit card can deliver significant savings

Most O% Balance transfer credit cards come with an introductory period during which you will pay no interest on your debt, giving you the breathing space to sort out your finances so you can catch up with payments.

After the introductory period ends, which can be as long as 12 months, you will then have to begin paying off the debt by either a minimum payment or a percentage of the outstanding amount. You will also be charged on the outstanding amount

There are plenty of O% balance transfer credit card offers to choose from although finding a good one can take some work and you have to be disciplined in order to make balance transfers work for you.

What are the pitfalls of a O% balance transfer credit card?

It is essential to pay attention to the small print when consiolidating your debt onto a O% balance transfer credit card, as you could end up paying fees and a much higher interest rate than you expect on the credit card.

How quickly can I get a O% balance transfer card?

Applying for a credit card and being accepted can be a relative quick process, however it can then sometimes take 4-6 weeks to transfer your credit card balance to the new credit card. It is important that you keep up any repayments until the debt is transferred to avoid any penalties.

Will I have to pay a fee?

The majority of credit cards charge a balance transfer fee – a charge for transferring an outstanding balance from one credit card to another credit card.

Very few balance transfer cards cap the fee they charge you to transfer a balance to them so be careful in selected the right card.

Maximum fees now go as high as three per cent, with the average at 2.1 per cent. This can mean that if you transfer a balance of £5,000 onto a new 0% balance transfer credit card you will be charged on average £105 and as much as £150.

And if you have heavier debts the lure of an interest-free switch could prove even more costly. An uncapped £10,000 transfer could cost as much as £300.

How do I find the right O% balance transfer card for me?

When looking for the right balance transfer card you should shop around to find the balance transfer card that offers you the lowest interest rate for the longest period of time and with the fewest conditions.

You also want the APR after the initial offer period to be as low as possible. It is also essential to find out about late fees and over-the-limit fees. Other things to consider include whether the card offers other perks, such as cash back or other reward programmes.

How do I make a O% balance transfer card work for me?

The days of easy credit and companies falling over themselves to allow customers to switch between credit cards are over. It can now make sense for you to look for a long-term low rate on balance transfers rather than just switching again and again and ending up paying transfer fees every time.

If you choose a better balance transfer card wisely you can alleviate a lot of financial burden. But you need to keep in mind that you are transferring your money to a better interest rate for a reason. Don’t fall into the trap of filling up your newly cleared card with more debt.

Are there any better options than a O% balance transfer card?

If you are a homeowner then you could consider getting your property work for you by taking a loan secured on your home.

The big advantages of homeowner loans is that they usually allow you to borrow more money over longer periods of time. This is usually limited to how much equity you have in your home, but the length of the term can typically be for three to 25 years.

The big drawback of a homeowner loan is that if you don’t keep up repayments your home can be at risk. So think carefully before you commit.

What Next?

To find the best O% balance transfer credit card visit our best buy tables. We compare all the leading lenders, therefore finding you the best O% balance transfer credit card for you.

Compare credit cards and find the best O% balance transfer credit card here

If you are a homeowner and would like a quote on the best secured loans rates then complete our quick quote form and we will find you the best secured loan rate ion the market. We compare over 90% of all secured lenders, therefore finding the best homeowner loan for your circumstances.

For a homeowner quote click here

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