0% Balance Transfer Credit Cards
Don't play games - Follow this golden rule
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Last update : December 2011
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Actually there's not one Golden Rule for using a 0% Balance Transfer Credit Card, there are 2 -
- Never use the card again to spend
- Never miss a minimum payment
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| Golden balance transfer rule 1 |
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Not all debt on a 0% Balance Transfer Credit Card is treated the same way. For example -
- If you transfer £2,000 to the 0% Card that is one debt
- If you then use the card again spending £1,000 that is a separate debt
The trouble is the £1,000 is not charged at 0% as it's not a balance transfer. Usually this will be charged interest at the standard rate, 15% or more.
But the £1,000 debt cannot be repaid until the balance transfer debt of £2,000 has been repaid and therefore the £1,000 starts to accrue interest.
This is one of the small print tricks designed to catch out the many people who balance transfer. So Golden Rule 1 states -
If you balance transfer never spend on that card again until the balance is settled in full
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| Golden balance transfer rule 2 |
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The other Golden Rule is never to miss a minimum monthly payment.
Balance Transfer Cards still require a minimum payment every month, usually 2% - 3% of the overall balance. And miss this and the small print will say the 0% deal is off and interest will be charged at the standard rate
The way to combat this threat is one of the following -
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See also
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FREE Report
How to Audit your Credit File
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With errors your rating will suffer
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How a clean credit rating can save you money
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4 steps to a clean up any mistakes |
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Don't discount the importance of your credit file
It's absolutely critical.....
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Get the FREE report |
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