In order to attract customers with
balances on their cards many credit card companies
offering special interest rates when customers transfer
a balance from another credit card to theirs. Some companies
are even offering 0% interest on transfers and if you
use these deals carefully you can save hundreds of pounds.
E.g. If you are paying £50 a month in interest
and you get 6 months free credit it is worth approx
£300.What to watch out for However, you need to
be careful if you are planning to use this card as your
main card to make purchases on. Some credit cards, and
you need to check with them what their policy is, will
always pay off any balance transfers before purchases.
This means that when you make a payment you are clearing
the interest free bit first. The problem with this is
that if you are not paying the whole balance you will
not then be clearing all of your purchases. As such
you will be charged interest.
to get the best out of these deals
as much of the balance as you can to the card. Do
not use the card for making purchases (i.e. just keep
it for the balance transfer) until the end of the
interest free period. Make the minimum payment each
month and then repay the balance in full (or transfer
it) making sure that you give it plenty of time to
arrive before the end of the free interest period.