Many people are too attached to their old credit card and don't realise how much money they could save by transferring their balance to a better card. Credit card companies are competing to get new customers, so now is a good time to take advantage of the many introductory offers with 0% interest that are out there.
You want to find ways to save money, right? If you said yes, keep reading because I have the answer to your prayers: switch to a credit card with a balance transfer deal.
Credit card companies want your business, so there has never been a better time to check out the great deals that are available and save money at the same time. One way to do this is to look for credit card companies that have deals for transferring balances.
What are balance transfers that don't cost anything?
What are balance transfer deals? I'm glad you asked! They are here to save us money, and if you use one, it will help you a lot. If you don't know how they work, keep reading and I'll tell you,
When you move the balance from one card to another that has a better APR, this is called a "balance transfer." A lot of companies are jumping on this deal. They will give you no interest for a certain amount of time, which could be between 6 and 9 months or even a year. Say your card had an annual percentage rate (APR) of 27.9% and your balance was GBP2,000. Your monthly payment would be GBP300. After 6 months, you still wouldn't have paid off your balance, but you would have paid GBP494 in interest and still owed GBP694. If you could have put this amount into a balance transfer deal, the amount you would have to pay at the end of six months would have been GBP200, saving you GBP494.
Choose the card that works best for you...
Take your time, because there are a lot of these deals out there. Check your junk mail, because it might not be junk after all, or look for these great deals on the Internet. There has never been a better time to take advantage of them. They want your business, so shop around to find the best deal for you.
If you switch to a credit card with a 0% interest period, make sure to check the APR after the 0% interest period is over to make sure it is lower than the APR on your old card. You don't want to be spending more money than you have to.
Once you decide to switch cards and your introductory 0% APR period is over, don't be afraid to switch to another one and use it the same way. It's about time credit card companies gave us something back.
Remember...
- Compare prices to find the best deal.
- Take your own situation into account
- Make sure you know what the APR will be on your new credit card after the introductory deal ends.
- Don't try to get too many credit cards at once, because that could hurt your credit score.
