Balance Transfer - Credit Cards

Bad Credit? Take out a Bad Credit Card!

Every credit card company has to offer something to get you through their virtual doors and filling out that online application form. One of the most popular offers in recent years has been to offer an introductory rate or balance transfer rate for as little as 0%. This means that for several months they will charge you 0% APR, or a very low rate of interest, on balances you transfer from existing credit cards or store cards.

Is this card for you?
If you have outstanding balances on a credit card or a variety of store cards, you are probably being crippled by the APR and monthly repayments you are committed to. You would do well to apply for a balance transfer credit card or one that has an introductory offer. Such cards enable you to consolidate your debts into one monthly repayment and benefit from paying little or no interest. This gives you breathing space to try and pay off as much of the debt as you can.

You have to remember though that these are not infinite offers and after approximately six or nine months, depending on the period of the offer, you will start to be charged interest on the outstanding balance. If you are organised, you can become what is known as a “rate tart” and transfer the balance again to another balance transfer credit card before the introductory offer expires. However, as this is costing credit card companies £1 billion per annum in the UK, these offers may not be around forever.

If you feel that you would miss the boat and forget to transfer a credit card balance, a low rate balance transfer card may be for you. These offer low interest rates for the entire life of the balance.