Credit Card Transfer
Posted February 2nd, 2009 If you feel as if you’re drowning in debt, a credit card transfer might be the beginning to solving your financial problems.
You’ve probably seen advertising for balance transfer cards and if you haven’t looked into this new product, you probably should. A credit card transfer to one of these cards can save you a significant amount of money that you would normally spend paying interest rates on your balances.
Many of these balance transfer cards charge little or no interest. If you can get one with no interest, you’ll save even more. By transferring your high-interest balances to one of these cards you’ll have just one payment each month instead of several. Credit card transfer is an excellent way to begin managing your debt and paying it down.
Finding a credit card transfer is a lot like shopping for a credit card. You will find that there are different terms and conditions depending on the credit card issuer. Many low or no interest cards have a clause stating that if you add new charges to the card, you will incur interest charges not only on those new purchases but on the entire balance that you transferred onto the card! So if you do a credit card transfer read the terms and conditions very carefully and abide by them to the letter.
Most people don’t realize just how much they can save by transferring their debt onto a low or no interest credit card. If you have a two thousand dollar balance on your card and pay just the minimum payment each month, it will take you fifteen years to pay off that balance and you will have paid another two thousand dollars in interest! By doing a credit card transfer and not charging anything else on that card you will save hundreds, if not thousands, in interest charges and be out of debt more quickly.
You may even find a balance transfer card with added value such as a rewards program on the purchases you make with it. Not all credit card transfer arrangements prohibit new purchases, so if you get one that you can use for everyday expenses be sure to get as much bang for the buck as you can. Some have an annual fee, which is probably not a card you want to have, and some are even offering signup bonuses for new customers!
Be sure that you know how long the no or low interest rate is good for. There is usually a time limit, and the issuer will not remind you that it’s approaching! Most of these cards also charge a fee for transferring a balance that averages around four percent. Take care to make all your payments on time; if you are late or even skip a payment the full interest rate kicks in and could be as high as 25-30%.
By shopping around and carefully reading the terms and conditions of a credit card transfer, you can get a handle on your debt and begin to pay it down.
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Comparison of Top 10 Credit Card Offers
| Credit Card | Card Details | Interest Rate | Cash Advance Rate | Balance Transfer Rate | Annual fee | Interest free days | ||
|---|---|---|---|---|---|---|---|---|
 Halifax All in One Credit Card |
The Halifax All in One credit card offers a great introductory rate, and is perfect for saving you money now as well as in the future. | 15.9% APR | 27.95% p.a. (variable) | 0% for 9 months | No Annual Fee | 59 Days interest free |
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 Virgin Credit Card |
As well as a great rate, the Virgin Credit Card comes with:
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16.6% APR (variable) | 27.9% p.a. (variable) | 0% for 16 Months (2.98% fee on balance transfers) | No Annual Fee | 50 days on card purchases |
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 Capital One Classic Visa |
This card is designed for people with bad credit ratings, this is why the rate is quite high. |
Typical 34.9% APR variable | 34.9% APR | 34.9% APR | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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As well as earning Flying Club miles which you can spend on brilliant rewards like flights, upgrades, car hire and more, a Virgin Atlantic Credit Card gives you up to 46 days interest free on card purchases. |
17.9% APR typical rate | 20.9% p.a. (variable) | 0% for 6 months (2% handling fee) | No Annual Fee | Up to 46 days on card purchases only. |
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The Virgin Prepaid MasterCard from Virgin Money is a prepaid Mastercard that you can add funds to, and use these funds for normal purchases. |
N/A | N/A | N/A | N/A | N/A |
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5% cashback on purchases in your first three months (up to £4,000 of spend). Thereafter, earn 0.5% on the first £3,500, 1% on £3,501 to £10,000, and 1.5% after £10,001. |
18.9% p.a. | 27.9% p.a. | 18.9% p.a | No Annual Fee | 56 days for purchases. 0 days for balance transfers and cash. |
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Vanquis Visa Card is designed for people with no credit history or who have previously had bad debt. Representative 39.9% APR (variable) |
Representative 39.9% APR (variable) | 39.9% | N/A | No Annual Fee | Up to 56 days on card purchases only |
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The award winning prepaid card with no credit check or bank account needed. | Funds in your Account will not earn interest | Prepaid only - N/A | Prepaid only - N/A | £59.40 p.a. (£4.95/month) | Prepaid only - N/A |
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