How do balance transfer credit cards work?
Borrowing on a balance transfer card means you take the balances from existing credit cards or store cards and put them onto another card which (usually) has a lower APR or 0% interest for a period of time, meaning you pay less on your monthly repayments and less interest on the overall balance. You may have to pay a balance transfer fee although some card issuers do offer introductory 0% transfer fee balance cards.
The 118 118 Credit Card has no balance transfer fee. You will be able to make balance transfers up to the credit limit but will need to make sure you pay off any interest incurred whilst you still have the balance which you transferred, to keep you under your credit limit.
You may not always get the representative APR you see in the representative example, but when you use an eligibility checker, what a lender is willing to offer you should be clear before you go through with a full application.
Are balance transfer credit cards a good idea?
Depending on the credit limit, you may be able to consolidate several existing credit card balances into one, meaning fewer monthly repayments to juggle. The key thing with a balance transfer credit card is to make sure you work to pay off as much of the debt as possible before any special offer expires so that you don’t lose the benefit of moving your balances. Where your balance transfer credit card has a lower interest rate, this will help you pay off debt faster if you manage your credit card repayments on time every month.
What is the best balance transfer credit card?
This is largely dependent on a few different factors. Firstly, your own individual circumstances. If you have bad credit or no credit history or you may have had a CCJ in the past, all of this can influence the type of card you’re likely to be eligible for. With a bad credit history, there are specific cards which cater for this, but the representative APR can be higher.
Secondly, it also depends on what other features you may require as a cardholder which will also influence the availability. You may require a card with a 0% balance transfer, but also 0% on purchases if that’s how you intend on using your credit card. In some instances, you may decide that you don’t want to pay a balance transfer fee but don’t require anything further. It is therefore essential that you give due care and consideration to see which card best meets your individual circumstances.
How does a credit card balance transfer onto the 118 118 Credit Card work?
Transfer a balance onto the 118 118 Credit Card and you won’t be charged any extra on top of that amount. Here’s what you can expect to pay from your first statement:
3.5% of the balance shown on your statement, as well as any interest charges and/ or any over limit amount;
A minimum of £10 (or the full balance shown on your statement if less than £10).
For purchases and cash withdrawals, the 118 118 Credit Card offers up to 51 days’ interest-free if you choose to pay off your statement balance in full.
Once you take out your new 118 118 Credit Card, give us a call on 08000 118 222 to make your balance transfer.