How to score a great Balance Transfer Card
Each year, gazillions of pounds are spent in the January transfer window. But football clubs are owned by some of the richest people in the cosmos and most mere mortals don’t have a stadium full of spare cash this month. This doesn't mean you can't dabble in the transfer market though. If you’ve scored a bit of an own goal with your cash over Christmas, a balance transfer credit card might be the key to financial enlightenment.
Although juggling numerous credit cards might seem like a good idea at the time, debt can quickly mount. Before you know it, you're paying a large amount of interest across several different cards. One way to sort this is to move any existing debt you have to a balance transfer card. This can consolidate your debt in one place and allow you to benefit from a lower interest rate – back of the net.
Be careful, all is not simple in the world of balance transfer cards. If you still feel out of your league, fear not – I’m here to captain you to glory. Behold my game plan to ensure you come out on top this transfer window:
Keep your eye on the goal.
If simplicity is what you’re after, then a balance transfer card could be just the ticket. With multiple credit cards, it can be hard to keep up with payment dates and what’s owed when. Transferring all your debt into one low-interest card kicks all this into touch and lets you simplify your financial life. Go on, my son.
Team up your debt?
You can transfer debt from multiple cards onto a balance transfer card and it’s not just credit card debt, you can transfer any outstanding balance you have on a store card.
There’ll be a transfer fee.
Fees for balance transfers are commonplace. This will usually be a percentage of the amount you’re transferring and should definitely be a consideration when weighing up your options. I can help you conquer confusion in my Credit Cards section.
Already preparing for next transfer season? It may seem like a good idea to bring a new balance transfer card off the subs bench as soon as your initial rate expires, but don’t be too hasty. Moves like this can be damaging to your credit score and lenders may then view you as a risk.
Know exactly what you’ve signed.
A balance transfer card seems very tempting on the face of it, but be careful. Like the knees of your star striker, the initial rate you’re offered won’t last forever. After a set period your interest rate will jump significantly, so be careful not to get behind with your payments.
Blow the whistle on new purchases
Although you’ll get 0% on the initial transfer, it’s possible that you will be charged for any new purchases you make. If you want a card to spend on some big purchases, shop around for a different card. Seek and you will find, my friend.
Know the score
As with all the best credit card deals, the best balance transfer deals will only be available to those who have a good credit score. Be wise and make sure you know your credit score before you apply for anything.
Remember, I’m on your team as far as financial happiness is concerned. My Wisdom Section is at full capacity with tips, ideas and guidance.
Peace and loans,