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2. THE PROS AND CONS
OF TRANSFERRING YOUR BALANCE

3. While using 0% balance transfer cards can be a smart way of
getting yourself out of debt, it’s important to do the maths first or
you might find yourself in more debt further down the line.
If you’re considering using balance transfers to manage your finances
this year, make sure you understand the pros and cons of doing so.
New to balance transfers?
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4. Money.co.uk explores the reasons for and against
transferring your balance with 0% transfer cards
in this helpful guide for first-timers...

5. PROS OF BALANCE TRANSFER CREDIT CARDS

6. Using 0% balance transfer cards allows consumers
to move any outstanding debts from a higher-interest
credit card onto a lower interest one. This can be a great
way to save money and get out of debt faster.
Why transfer your balance?

7. Although interest-free windows on balance transfer cards are
not as high as they once were, you can still benefit from up to
29 months (more than two years) without facing charges.
This can provide some much-needed breathing space to
clear any debt from big purchases over the festive period,
for example, whilst remaining free of mounting interest.

8. You can also use balance transfers to help
consolidate your credit card debt, leaving fewer credit
card repayments to make each month.

9. If your balance transfer card has a high enough credit
limit, this can be particularly useful for paying off
multiple credit card repayments across several
different credit cards.

10. If you transfer a credit card balance for the right reasons, such as
paying off debt, while understanding the fine print, doing the maths,
and sticking to a regular repayment plan, then a balance transfer
can be an effective tool for quickly removing debt.

11. CONS OF BALANCE TRANSFER CREDIT CARDS

12. On the flip side, balance transfers can land consumers into even
more debt and a much worse financial situation if they are not
used correctly.
Typically, you need a strong credit score to get a low-interest
balance transfer rate. Otherwise, you might only be eligible for the
regular and much higher interest rate.

13. If you don’t weigh up the full cost of transferring your balance
against the interest of keeping your balance on your older card,
this could end up costing you money in the long run.
Balance transfers can also get expensive and hurt your credit
score if they’re not managed and maintained correctly.

14. Applying for and opening new credit cards can
affect your credit score.
Should you end up transferring your balance to
a different credit card without enough
credit, this will cause your score to drop.

15. DO’S AND DON’TS
OF BALANCE TRANSFERS

16. If you decide to go ahead with a balance transfer, it’s
important to know how to use your card and how not to
use it.
Follow these do’s and don’ts as a rule of thumb to
get the most out of your balance transfer card...

17. Do’s of balance transfers
● Do have a bank account, credit card or mortgage
with the brand whose balance transfer card you
want before making an application.
● Do compare offers and look for the best deal
before making a decision.

18. Do’s of balance transfers
● Do make sure you clear all interest off your card before the 0%
runs out or risk paying a higher APR.
● Do any balance transfers quickly within the first 60-90
days in order to qualify for the 0% interest.
● Do take advantage of any reward schemes.

19. Don’ts of balance transfers
● Don’t apply for multiple balance transfer cards at once or it
will look bad on your credit report.
● Don’t immediately close older accounts or it will
negatively affect your credit score.

20. Don’ts of balance transfers
● Don’t forget to meet your monthly repayments.
● Don’t spend or withdraw cash on your balance transfer card.
● Don’t exceed your credit limit or risk having your balance
transfer card blocked and be charged a penalty fee.

21. WOULD YOU CONSIDER A BALANCE TRANSFER?

22. LET US KNOW YOUR THOUGHTS!