0% balance transfer credit cards are amongst the best known and least understood of financial products in the UK  .A balance transfer is when one credit card repays your balance on another credit cards; so you now owe the money to the new lender at a lower  rate.  An example of this is:

Current debts: Barclaycard £2,000 at 18%, Egg Card £1,000 at 17%.
New credit: Lloyds TSB 0% for 16 months on balance transfers.

To do a balance transfer, you would ask Lloyds TSB to pay Barclaycard £2,000 and Egg £1,000 to clear the balances.  This means that the Barclaycard and Eggcard are debt-free, as the debt has been transferred to the Lloyds TSB credit Card; which you now owe £3,000 at 0% interest.

You should also be aware that there is usually a fee for transferring balances.  This fee is usually around 3% of the transferred balance which is then added to the balance on your new credit card..

If you own several cards with different payment due dates and interest rates, then doing a balance transfer to a 0 percent uk credit card dealsinterest credit card will save you time and money.  In some circumstances, a 0% balance transfer enables you to save thousands of pounds.

Banks in the UK usually offer the best 0% balance transfer credit card deals to new cardholders, however, if you do a bit of research, there are a few existing customer balance transfer deals offered by some banks to their best customers.  Moving from 0% deal to another 0% deal is an effective way to deal with your debts, instead of paying huge amounts of interest.  You will need a good credit score if you want to apply for these 0% balance transfer credit card deals.  If you have Arrears, CCJs or defaults, you will not be eligible for deals such as this.

The current economic situation in the UK means it can be hard for people with a poor credit history to get decent deals. Even with tighter lending criteria, it is still possible to get some decent deals if you shop around.

If you haven’t applied for a new credit card in about 12 months or so, it’s worth submitting an application for a “good credit” credit card. There’s a chance you will be accepted.  If, however, you are rejected, there are still other deals out there, but the chances of getting accepted for one of the top deals on the market are low.

When you do get a balance transfer you should remember not to spend on that card after transferring your balance to it!  Each type of transaction on your credit card is charged at a different interest rate.

So while you will be getting the great 0% rate when you do your for balance transfers; when you make any additional purchases, theses are almost always charged at a greater interest rate and when you make repayments, that money will go towards paying the lower interest debts first.  This means the expensive debts will continue accruing accruing interest, and you wont be able to repay them until you’ve cleared the 0% debt.  Therefore as a rule, never spend on these credit cards!


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