What is a 0% balance transfer credit card?
When you shift your debt from one credit card to another, it is known as a balance transfer. Cards that offer 0% on balance transfers charge you no interest at all for a set period, meaning you can chip away at your debt without it increasing.
How do we rank them?
Moneywise ranks balance transfer credit cards based on how long the 0% deal lasts. If two cards offer the same term, then the card with the lowest balance transfer fee ranks highest.
Tips when choosing the right 0% balance transfer credit card
Double check when the 0% balance transfer term ends. Make sure you know how long the 0% offer lasts – once it expires you’ll start paying interest. in order to shift your debt at a lowest fee.
Check balance transfer fee you’ll pay
Fees should be around the 3% mark but some cards will also charge a minimum cash spend of £3–5 per transfer, if this is greater than the percentage fee. Depending on the size of your balance transfers, this minimum cash amount could take off some of the sheen of the 0% period.
Try to always repay at least the monthly minimum
If you miss a payment or make a payment lower than the minimum, you could lose your 0% deal and have to pay interest on your debt. It’s better to set up a direct debit to repay some of the amounts. That way you can avoid ending up in a pitch black hole of debt.
Moneywise Best Buys
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