Balance Transfer Credit Card UK

By: EconomyWatch Content   Date: 29 January 2010

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If you have an outstanding debt on your existing credit card and you are being charged high APR every month, the best solution to your problem in UK (o r elsewhere) is to obtain a balance transfer credit card. A balance transfer credit card allows the cardholders to move their outstanding debt from another card. Some issuers in the UK are Halifax, Virgin, Barclaycard, Natwest, Royal Bank of Scotland, HSBC and Egg.

 

Balance Transfer Credit Card UK: Procedure

Once you have decided to move the debt to another company, you should apply for a balance transfer credit card. There are three different ways to apply this card, online, on phone, or by visiting the credit card company to fill out a paper application. Many companies offer 0% APR for a period of 12 months. Some issuers may allow you a grace period of 15 months without charging you interest. During this period, you can clear away your debt free of interest. However, once the grace period is over, you are charged the standard APR. If you are not able to find a 0% APR card, go for one with a low rate until you clear your existing balance.

 

By using a balance transfer credit card, you can not only clear off your debt, but also save a lot of money that you would otherwise have paid as finance charges to the previous company.

 

Balance Transfer Credit Card UK: Considerations

 

It requires a lot of diligence to make the most of a balance transfer without getting deeper into debt. Steer clear of balance transfer credit cards that come with hidden charges mentioned in the fine print. You may be asked to pay a percentage of the balance transfer as transfer fee by some balance transfer credit card issuers. It is advisable to ensure that there is a cap on this amount. It is important for an applicant to enquire of the bank would charge a high annual fee. If this is the case, shift to another provider. Such a company is already making a business out of you, so you have the right to take the upper hand.

 

 

 

 


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