Buyer's Guide to Balance Transfers Credit Cards

Wondering how to transfer funds to another credit card issuer? It's now easier than ever. Credit cards have witnessed a boom of add-on services as this modern shopping companion enjoys ever-growing popularity. Among the services which credit card service providers have designed to attract or retain customers has been balance transfer. The beauty in it is in its underlying nature, namely it allows you to migrate from one credit card service provider without wringing related penalty fees off you. What is more, you can now make an extensive search among 300+ credit cards from as many as 30 service providers which compete for your funds with benefits no end.

An interest-free loan

The sweet part about balance transfer is in that it is multi-faceted. For some, it can act as a safe haven from looming penalty charges. If you have incurred interest rate at one provider and you switch to another offering 0% balance transfer fee for up to 36 months, in effect you earn a 12 to 36 month interest-free loan. Yet beware, should you turn this practice into a habit, your pattern will not go unnoticed and you will find it growingly difficult to be approved for a balance transfer.

Those with bad credit history are unlikely to get balance transfer credit card as they are considered more risky. They can improve their credit score with the time and apply later for this type of credit card. 

Look for full suite

When checking for the best available offer, never look for individual benefits but for their combined effect. The reason? However attractive any of them may seem, its competition-denying lure may well be offset by the less-than-competitive offer for the rest of the features. For example, if you see a 2.8% commission while the going market rate is 3.5%, then it will most likely go with a smaller commission-free term for your credit card purchases, the end result being fewer benefits for intensive credit card users.

 

More about providers

In any case, before you start searching for a preferred credit card provider, you need to check the going offers at websites which list them side by side. One is Money Supermarket. This one-stop-shop comparison website provides you the big picture which populates the landscape both with the reputed providers and the full credit card range along with their specific characteristics.

uSwitch, for its part, apart from listing the main features, redirects you immediately to the application page of each provider. This shortcut saves you the hassle of learning the architecture of your favourite provider.

With Money.co.uk, you can straight away filter the cards by preferred characteristics. Whether you are looking for low APR or cashback & rewards, your list will be re-arranged according to your preferences.

 

The three Must before you go

And remember, you can only take advantage of these offers if you are 18 years or older, you have a good credit rating and if you are a UK resident. You meet these requirements? Then have a pleasant search!

The information on this page is designed to help you understand more and make more informed choices. We do not receive any commissions, instead we are funded from companies that we advertise on our website.

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