Balance Transfers Introduction



Credit card balance transfer involves using a credit card to pay off the amount outstanding on one or more credit/store cards. The total debt then moves to one card.

The main benefit of balance transfer is a money-saving one. In the competitive credit card market an increasing number of companies are offering a 0% interest rate for a fixed period on balance transfers made by new customers. This allows new cardholders to make considerable savings in interest repayments. Interest free periods vary and certain credit card issuers extend the 0% interest rate offer to cover new purchases, it is worth taking great care to compare balance transfer offers well before deciding which one to choose.

Some companies offer lower than average interest rates on transferred balances for the life of the balance transfer. This may be good news for card users who are not planning to pay back credit card debt in the short term.

Transferring credit card balances is usually a simple process. Once a card application is approved it usually involves a phone call to the new card issuer to transfer the balance(s) from the other card(s). Many credit card companies also offer an on-line service, making it even easier to transfer balances via the Internet.

There is usually a window of time after a new card is approved during which balance transfers attracting the promotional interest rate must be made.

A word of caution regarding balance transfers. Minimum monthly payments still need to be made. Fall behind with minimum payments and fines can be made and interest free offers withdrawn. The same can happen if credit limits are exceeded.

In a market full of balance transfer deals, offers vary greatly. It is important to double-check the details carefully before signing on the dotted line. For example:

  • Are there any additional fees to be paid when balances are transferred?
  • Do I need to make a minimum monthly spend using the new card to qualify for the promotional balance transfer rate?
  • How soon after my credit card is approved do I need to make the balance transfer?
  • What interest rate is charged on new purchases made using the card? In particular, 'Balance transfer for life' cards often put payments towards clearing the low interest balance transfer and not the recent purchases that attract higher interest
  • Do I get charged interest on new purchases from the time the purchase is made?
  • What does the interest rate revert to after the promotional period has finished

Before taking up a balance transfer offer, also take time to consider the amount you need to move and how much you intend to pay off and purchase each month. That way you can be sure that you choose the right card for you.


The latest balance transfer offers in the UK at the moment can be seen at www.1st-uk-credit-cards.co .uk/summary_by_Transfer_Rate.html


Phil Edwards is a Business analyst in the city of London, freelance writer for several finance magazines and websites and co-owner of 1st UK Credit Cards and 1st UK Loans

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table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.mercurynews.com/vc/ci_10692136cid=1256292417ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNH8CXhFo-nbho6WurDTCsdZ3iowhATax bcredit/b extension gives huge boost to solar industry/abrfont size=-1font color=#6f6f6fSan Jose Mercury News,nbsp; USAnbsp;-/font nobr8 hours ago/nobr/fontbrfont size=-1By Matt Nauman In what promises to be a huge boost for Silicon Valley#39;s solar industry, the extension of the solar tax bcredit/b bundled into the recent $700 b.../b/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.cbc.ca/world/story/2008/10/11/finance-talks.htmlcid=1256509628ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNEWQTmXH3GSSrhIRBrBA-vqrtGSmQUS will work with partners on bcredit/b crisis: Bush/abrfont size=-1font color=#6f6f6fCBC.ca,nbsp;Canadanbsp;-/font nobr2 hours ago/nobr/fontbrfont size=-1It was the 21st time in 26 days that the president has spoken publicly about the bcredit/b crisis gripping financial markets and dragging down stock markets. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.financialpost.com/story.html%3Fid%3D876036cid=1256509628ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNEprpLtfhev1iOz_e2yNI6DywkL2AFinancial crisis will require global response: Bush/a font size=-1 color=#6f6f6fnobrFinancial Post/nobr/font/fontbrfont class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256509628hl=ennobrall 286 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd width=80 align=center valign=topfont style=font-size:85%;font-family:arial,sans-serifa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.chinadaily.com.cn/bizchina/2008-10/10/content_7093040.htmcid=1256514249ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNGW1mzK2U6kQ5OZRwa8LI8BUp3rYwimg src=http://news.google.com/news?imgefp=IqRTpaf18WoJimgurl=www.chinadaily.com.cn/bizchina/images/attachement/jpg/site1/20081010/0013729e45180a58d30c09.jpg width=80 height=38 alt= border=1brfont size=-2China Daily/font/a/font/tdtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.newsday.com/services/newspaper/printedition/saturday/news/ny-bzstox115879148oct11,0,193013.storycid=1256514249ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNELq_orHEyVUkIJl2xli1sqW3hxMAStock markets end week of bcredit/b crunch worries/abrfont size=-1font color=#6f6f6fNewsday,nbsp;NYnbsp;-/font nobr9 hours ago/nobr/fontbrfont size=-1bCredit/b-crunch worries continued to weigh on US stock markets Friday, but the hemorrhaging evident for most of the week was contained. b.../b/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.youtube.com/watch%3Fv%3D7vEEspTIs6wcid=1256514249ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNF1Hni1OMNkLXz-T6lzAf9sm6iYgwVideo: US Stocks Extend Huge Losses/a font size=-1 color=#6f6f6fnobrAssociatedPress/nobr/fontobject width=448 height=356param name=movie value=http://www.youtube.com/v/7vEEspTIs6w/paramparam name=wmode value=transparent/paramembed src=http://www.youtube.com/v/7vEEspTIs6wtype=application/x-shockwave-flashwmode=transparentwidth=448height=356/embed/objectbr/fontfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.businessweek.com/investor/content/oct2008/pi20081010_861090.htm%3Fchan%3Dtop%2Bnews_top%2Bnews%2Bindex%2B-%2Btemp_investingcid=1256514249ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNECbLymh9ymcjusAz-RFLY-kmK9PQStocks: Buyer Beware/a font size=-1 color=#6f6f6fnobrBusinessWeek/nobr/font/fontbrfont size=-1a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://uk.reuters.com/article/usMktRpt/idUKN0931135320081009cid=1256514249ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNEJDvL4YG67wzdVZfRuD4TNQjFNDgUS STOCKS-Dow, Samp;P slip as bcredit/b worries remain/a font size=-1 color=#6f6f6fnobrReuters UK/nobr/font/fontbrfont size=-1 class=pa href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.reuters.com/article/newsOne/idUSTRE4963K420081008cid=1256514249ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNHpnnBBVy02SEKC2tx0-v98K4GmlQnobrReuters/nobr/anbsp;- a href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://ap.google.com/article/ALeqM5gHs5OM3gFG_DytQQZFbWfgPT08MAD93NULL80cid=1256514249ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNGsPuBoelX2nvgeXkKKIGL6IzRrtwnobrThe Associated Press/nobr/a/fontbr/font class=p size=-1a class=p href=http://news.google.com/news?sourceid=navclientie=ISO-8859-1rls=GGLG,GGLG:2005-22,GGLG:enncl=1256514249hl=ennobrall 3,449 news articles/nobr/a/font/div/font/td/tr/table
table border=0 width= valign=top cellpadding=2 cellspacing=7trtd valign=top class=jfont style=font-size:85%;font-family:arial,sans-serifbrdiv style=padding-top:0.8em;img alt= height=1 width=1/divdiv class=lha href=http://www.citywebshopper.net/articles/includes/redirect.php?url=http://www.courant.com/shopping/hc-copdigbrf1011.art2oct11,0,132341.storycid=1256454168ei=TdXwSMC9C6bU6gPfx6yMAwusg=AFQjCNErbK7a7DbSBmq2C1XE4BpBqqP51APLAINVILLE: Police: Man Stole bCredit/b Cards, SUV/abrfont size=-1font color=#6f6f6fHartford Courant,nbsp;United Statesnbsp;-/font nobr9 hours ago/nobr/fontbrfont size=-1A man faces felony charges for stealing bcredit/b cards and an SUV in July, police said Friday. Nicholas Roy, 31, was charged by warrant with first-degree b.../b/font/div/font/td/tr/table
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