0 Percent Balance Transfer Deals: make switch and you could save money on expensive repayments, but beware the small print!!! | Credit

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If you have an existing credit card, and are finding that the amount of interest you are paying is running away with itself, maybe it's time to change cards. Many cards are now offering new customers 0 percent balance transfer deals. This means that if you transfer your balance then you will not have to pay any more interest on the amount for 6 months or more. Some companies are even offering up to 15 months or more interest free.

Of course, once the 0 percent balance transfer deals have run out there is nothing to stop you from changing card once again and keeping those interest payments to a minimum. People who do this on a regular basis have affectionately become known as 'card tarts'. There are certainly worst things to be called considering the savings that can be made. Recently there was a time when the consumer could move from one financial service to another to their heart's content. Nowadays the credit card companies have become aware of this type of activity and in an attempt to curb the number of people changing cards on a regular basis, fees have been introduced. These are usually around 3% of the balance being transferred. However, this is usually a small price to pay when compared to the saving to be made.

Due to the highly competitive nature of the financial services industry 0 percent balance transfer deals are getting better all the time. The time during which the 0 percent rate is being offered is being extended on a regular basis and there are even a few cards out there that are offering an unlimited APR on balances moved from a competitor, although there is likely to be a catch. Often the catch will be that you need to spend a certain amount each month in order to apply for the 0 percent rate. Stop spending the required amount and you will need to pay the standard APR. If you are a regular credit card user this maybe something for you to look into, whereas if you're just trying to pay your card off it may not be such a great deal for you.

Some companies are now even offering 0 percent balance transfer deals for the life of the card. This means that if you transfer your existing balance, to one of these cards, then you will be entitled to a 0 percent APR for as long as you have the card. Of course any new purchases will have the cards standard interest rates. It is also worth noting that some of these cards also have further requirements that you will have to fulfil in order to keep receiving the 0 percent offer. For example, you may have to spend a certain amount each month in order to qualify.

Once you have identified your ideal card it will then be a simple matter of applying directly to the card provider. The majority of credit cards now have an on-line application process. This makes signing up much easier than having to making lengthy phone calls, or calling into the banks in person. Often, once the online application has been made, forms will be sent through the post and a decision will be made. However, some organisations are now offering instant online decisions.

Another couple of important things to keep in mind are going to be the standard APR and the date that the interest free period draws to a close. Once the period ends you will obviously be charged interest at the standard rate - too often people are caught out by forgetting when the offer period ends or they just delay transferring the balance again for whatever reason. Balance transfers can certainly help make repayments easier but you certainly need to keep on the ball - remember, make regular repayments above and beyond the monthly minimum and keep aware of a time when you may need to consider transferring once more.

About the Author

Are 0 percent balance transfer deals leaving you confused? Stephanie Hamilton, a freelance writer for Money-Now.co.uk, understands the language of credit card deal offers. For further impartial advice about credit cards visit Money Made Clear.

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