0% Balance Transfer Credit Cards
Compare 0% Balance Transfer Credit Cards
Each of the major credit card providers offer an array of 0% balance transfer credit card offers to encourage customers to switch away from their current credit card to a card featuring a 0% balance transfer offer.
With the 0% balance transfer rates on offer any outstanding balance you may have on your current credit card may be transferred to the new credit card that will attract no interest charges for the period of the balance transfer. Use our calculator below to work out the interest savings you could make by switching to one of the balance transfer cards listed in the table, simply enter the balance you wish to transfer and the interest rate you are currently paying, the interest savings available are then shown for each card.
Guide to 0% Balance Transfer Credit Cards
The Balance transfer periods available on 0% Balance Transfer credit card tend to range from 6 -14 months, after which the “revert rate” of interest will be applied to any of the transferred debt which you have not cleared. This revert rate will be stipulated by the card provider and is generally either the cards cash advance rate (most common) or the purchase rate.
Notably any new purchases you make using the balance transfer card will be subject to the cards Purchase Rate from day 1, so when accessing these 0% balance transfer credit cards it is important to consider 3 key interest rates: The Balance Transfer Rate, The Purchase Rate and the Cash Advance rate, and establish which interest rates are going to apply given your spending habits and ability to repay the card debt.
A 0% Balance Transfer Credit Card, if managed appropriately, can be an effective method of saving money by minimizing interest charges. To achieve the greatest savings from your balance transfer credit card it is critically important that you resist the urge to spend unnecessarily and remain in control of your debt and stick to making the minimum monthly repayments without fail.
By way of example, here’s an illustration of the interest savings which can be made if you stick to the minimum repayments: If you had a credit card debt of $3,000 and were paying a standard rate of interest of 20.99% p.a. then over a period of 6 months you would be paying around $300 in interest charges. If however you transferred that $3,000 balance over to a 0% balance transfer credit card, with a balance transfer period of 6 months, you would pay $0 interest charges on the balance, saving you $300.
How to Select the Best 0% Balance Transfer Credit Card
When selecting the best 0% balance transfer credit card for your situation, you’ll need to be clear on a number of points, 5 critical ones are:
- How large is your balance - this will be a significant influencer on the minimum monthly repayments you’ll be required to make (see point 2 below) and if you feel any doubt about the ability to clear this amount within the balance transfer period it is important to ensure your card choice has a revert rate which is as low as possible as any remaining debt at the end of the balance transfer period will be subject to this interest rate.
- How much you can afford to pay off each week, without fail? - Do the calculations and commit to a weekly amount which you are 100% confident of, it is better to commit to a lower number which you know you can repay, than a higher one which you have a high chance of not meeting each and every week.
- How likely you are to stick to this weekly repayment amount - honesty and frankness on this is crucial to making a balance transfer credit card work for you.
- How if at all do you intend to use the card once the Balance Transfer debt has been repaid - If this new card is one you are looking to sytick with beyond the balance transfer period you will need to consider all the fees, rates and conditions in synch with those associated with the Balance Transfer Offer
- What are the chances of you using the card to make purchases before the balance transfer debt has been totally cleared? - Any purchases made on the credit card will add to the amount of debt you will need to clear at the close of each billing cycle, if you fail to clear the amount made on new purchases plus your monthly repayment of the Balance Transfer you will be back in a situation where you are once again paying hefty interest charges.
The Best Balance Transfer Credit Cards compared and reviewed - 0% Balance Transfer Cards, long terms balance transfer card, Instant Approval Balance Transfer cards all compared and reviewed side by side. Read more
Long Term Balance Transfer Credit Cards - Balance Transfer terms in excess of 12 months are now available and well worth consideration if you believe you need that extra time to finally clear your debt in full. Read more
How do Balance Transfers Work? and How Do I save money by switching to a Balance Transfer Card? - the infographic steps you through each step of the Balance Transfer process and illustrates where the interest savings are generated by switching to a Balance Transfer credit card. Read more
0% p.a. Balance Transfer for 6 month Credit Card Offers - These short term balance transfer credit cards focussed on clearing the transferred debt as quickly as possible to deliver savings on interest and a clean start within the 6 month balance transfer period. Read more
0% Balance Transfer Credit Cards - Frequently Asked Questions
There are three major benefits to getting a a balance transfer:
- You will save on interest charges - You enjoy a reduced or zero balance transfer interest rate on the amount transferred from other credit or store cards. Consequently, you will pay less are even no interest on the balance transferred so long as you continue to make the repayments and do not make any further purchases on the card.
- You get to pay off your balance faster - The money that would have gone to paying high interest costs now goes towards paying the balance, reducing the time needed to settle the debt in full.
- You simplify your financial life - A Balance transfer allows you to easily manage debt and organize your finances better. By consolidating several credit card balances to just one credit card provider, you no longer have to think about having to make multiple payments to multiple companies on different due dates every month
At the end of the balance transfer period, the introductory low interest rate reverts to a higher rate which is usually the cards cash Advance or Standard Purchase Rate. To avoid this revert rate applying to your balance transfer amount make sure you pay the balance transfer amount in full, prior to the end of the balance transfer period.
Some of the credit card providers charge a one-time fee at the time the balance transfer is made, this fee is usually added to the Balance Transfer amount. This fee is often may referred to as a balance transfer fee. It is typically calculated as a percentage of the amount to be transferred, usually between 1 to 2%. Therefore the bigger the debt transferred, the bigger the fee. There are also balance transfer cards that waive the transfer fee in exchange for a higher introductory APR (not 0%) or shorter repayment periods.
To avoid having to pay unexpected fees, be sure to check the fine print and make the necessary calculations before turning over your application.
Each 0% balance transfer card has a balance transfer limit, this is the maximum amount that you can move to the balance transfer card. The credit card limit will be proposed by the credit card provider.
The maximum amount that you can transfer to a new card would be equal to the approved credit limit, as a rule of thumb subject to credit approval of your application most card providers will allow cardholders to transfer up to 90 to 95 per cent of the new credit limit.
No. The amount you repay each month is not decided according to your interest rate. The good news is you have a lot more control over it. You can opt to either pay the minimum payment - which will mean it will take you much longer to repay your debt - or you can usually ask to repay a set amount each month.
Minimum repayments are usually set as a percentage of your overall balance but the percentage can vary, typically between 1% and 3%. If there is a chance you won’t be able to afford the minimum payment, if it is higher than your current card, be sure to check before you apply for a credit card.
Yes, CIti and Virgin Money Balance Transfer credit cards accept Personal Loan Transfers, and offer balance transfer periods between 6 and 12 months.