How do balance transfer credit cards work?
Borrowing on a balance transfer card means you take the balances from existing credit cards and store cards, and put them onto another card which (usually) has a lower APR meaning you pay less in the long term. You may have to pay a balance transfer fee, but 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 check, what the lender is willing to offer you should be clear before you go through with a full application.
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
a. any interest charges and
b. any arrears amount and/or
c. 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.
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 joining rate is over 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 as long as you manage your credit card repayments on time every month.