0 per cent balance transfer credit cards can help you with current debts as they allow you to pay no interest at all for a specified amount of time. If you’re thinking of applying for a one, read these tips to make sure you make the right choice and, when you have your 0 balance transfer card, that you make the most of it.

1. Compare the Whole Range of 0 Balance Transfers on the Market

There will be a number of options for your 0 per cent balance transfer card. In order to work the credit card system to your advantage, make sure you choose a card with terms and conditions which work to your advantage. For example, if you shop around you might be able to find a card which allows you longer before you have to start paying interest. However, if you fear not getting around to paying off the balance or switching cards in time before the zero interest period ends, you may be better off with a card which reverts to paying interest earlier on but at a lower APR.

2. Be Honest with Yourself about Repayments

When it comes to repaying debts, it’s vary easy to reassure yourself that there is no problem and you will be able to pay it off in no time at all. However, you need to consider all possibilities and make a well-considered prediction about when this will realistically be. This will help you navigate the 0 balance transfer system to your benefit. It could also prevent a nasty situation in the future in which you find yourself paying very high monthly payments. If you think you might take a lot longer to pay off the debt, you may be better off with a lifetime balance credit card.

3. Don’t Forget the Added Costs

As with all promotional offers, you need to watch out for any added costs and factor them into your decision. If, for example, you are transferring your money onto a 0 balance credit card from another card, or from a loan, there might be exit fees applicable depending on your original deal. As well as this, there are usually balance transfer fees of at least 2.5 per cent of the total balance payable. These fees are levied to prevent savvier customers from switching painlessly from card to card as each promotional interest free period comes to an end. Read the terms and conditions carefully before entering into a deal.

4. Never Make Purchases on your 0 Balance Transfer Credit Card

Where there seems to be a good deal, there are always potential pitfalls which are where the bank makes their money from customers who take their eye off the ball. With 0 balance transfer cards, a major stumbling block can be with making purchases. There are two main reasons why you should not make purchases on a 0 balance transfer credit card. For one thing, these cards will charge very high interest rates and fees for many types of purchases and transactions like example cash withdrawals. These can catch out customers who aren’t fully versed in the terms and conditions of their card. For another thing, when you have an outstanding balance on a 0 balance transfer card your priority needs to be to pay off that balance in time before the promotional period finishes. 0 per cent on purchases credit cards are much more appropriate if you intend to use the card to buy things.

Author Bio: Credit Choices offers free price comparisons and advice on interest free credit cards and 0% balance transfers.

Category: Finances
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