f you have a credit card can be useful after an intensive
you're likely to have debt, shopping spree!
but you could save a small
fortune on repayments by Types Of Balance Transfers
transferring the outstanding
balance on one credit card to There are two main types of
another credit card. Credit card credit card balance transfer
balance transfers are an easy offer. Many credit card companies
option for managing credit. Some offer users the chance to
people switch their balances from transfer balances for a rate of
card to card to take advantage of 0% for a fixed period, such as
each new offer. This is known as six or nine months. Once this
card jumping or rate surfing. offer has expired, the interest
rate on the transferred balance
Credit card balance transfer will revert to the standard
offers can also be used to reduce variable rate, which is likely to
the interest paid on bank loans be considerably higher.
or other loans. If the credit
limit is high enough, you may The best way to take advantage of
even be able to pay off the loans 0% balance transfer offers
completely. Some credit cards without ending up with higher
provide credit card cheques for interest rates is to get a new
this purpose, but you'll need to credit card about a month before
be careful. Some credit card the balance transfer offer
cheques have higher interest expires. Then you can transfer
rates than the credit card the outstanding balance on your
itself, so read the fine print old credit card to a new card and
very carefully. Some credit cards continue to save money on credit
also allow you to transfer the card repayments. Remember not to
balance from store cards. This apply for too many new cards at
once, as this could damage your applies to purchases. Credit
credit rating. cards that offer a low balance
transfer rate often have a higher
The second type of balance rate for any spending on the
transfer offer is one that offers credit card. It is also common to
a fixed rate on the money take any payments you make off
transferred for as long as it the lower rate total first, which
remains on the credit card. This means you could end up paying
may be a good option if you're quite a bit for spending on the
currently paying interest at a card.
higher rate. These offers tend to
offer a rate of around 5% which Each type of balance transfer
is considerably lower than offer has advantages depending on
standard interest rates. With the amount of debt you have, how
this type of offer, there's no you spend and how you plan to pay
need to worry about transferring off the credit card balance. Some
balances every few months. credit cards and store cards have
annual percentage rates that are
Credit Card Purchase Rates well over 20%. Shopping around
for a balance transfer card could
With this type of offer, it's save hundreds.
best to check the rate that
About the Author:
Joe Kenny writes for Credit Card Guide, offering the latest information on uk credit cards in the UK, visit them today us to apply for a best balance transfers and start clearing credit card debt today. Visit today: http://www.cardguide.co.uk/
Read more articles by:
Joseph Kenny
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