Transferring Your Balance To A 0% Credit Card
You can transfer your balance to a 0% credit card by providing details of your current credit card account to your new card issuer during the application process, or by using Internet or telephone banking once the account has been opened.
Your new card issuer will pay any money owed to your previous card company and this sum will be transferred to your new account.
Before transferring your balance it’s important to make sure you’re moving to the best deal available, so always remember to compare credit cards first.
Transferring your balance to an existing card account
If you are unable to transfer your balance when you apply for your card you can still take advantage of your new issuer’s 0% offer by transferring your balance another way once your account has been opened.
Internet and telephone banking are simple and convenient services offered by many credit card companies. Both services will require you to provide the account details of your existing card and the sum of the balance you wish to transfer. The main difference between the two methods is that telephone banking involves talking to a person rather than entering your details into an online form.
Time restrictions
There is usually a limit on the time you have available to transfer a balance to your new card, 30 days being a common period. By arranging a balance transfer during the application process or immediately after your new account has been opened, you will ensure that you do not exceed this time limit and miss out on the 0% offer.
Arranging a balance transfer at the time of application will also minimize the amount of effort on your part, as your new card issuer will do the hard work for you.
Choosing a 0% balance transfer credit card
With so many card companies offering 0% interest rates on balance transfers, choosing which one is best for you can seem a daunting task. The three most important factors to consider when comparing 0% balance transfer credit cards are as follows:
1. The duration of the 0% interest offer on balance transfers: The longer the duration of the offer, the longer you have to pay back your balance.
2. The duration of the 0% interest offer on purchases: The durations of 0% offers on balance transfers may not differ substantially between cards, so try comparing the durations of 0% interest offers on purchases.
3. The card’s APR once any 0% interest offer has expired: If you are unlikely to have paid off your balance by the time the 0% interest offer has expired, you must remember that a higher APR (Annual Percentage Rate) on your new card means that you will be accruing even more interest on your new account.
Things to remember
- Ensure that you check the deadline for transferring balances with your new card issuer; otherwise you risk missing out on the 0% interest offer.
- Consider whether you will be able to pay off your balance before the 0% interest offer expires. You are at risk of running up an even higher debt if your new card has a higher APR than your old one.
- Credit is not unlimited; balance transfers to your new card cannot exceed its credit limit.
Zoe Badowska is a personal finance reporter who shares her in depth knowledge of credit cards as a staff writer for Credit Card Comparison Online where you can compare 0% balance transfer credit card best buys and read more 0% balance transfer questions & answers
Tags: apply online, compare, current, how to transfer, move, switch, 0% balance transfer credit card
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