Moneyextra.com has produced a guide to getting the best 0% credit card deal
How to get the best 0% credit card deal
Tuesday, 23 Jan 2007 16:46
With companies queuing up to get you to transfer your balance to an interest-free credit card, a new guide to getting the best balance transfer deal has been released.
Comparison service Moneyextra.com has highlighted the biggest tricks and traps lying in wait for unsuspecting customers.
"Plastic can be very powerful but beware it doesn't turn round and bite you," said Robin Amlot, Moneyextra senior editor.
"The days when you could pick a card, any card and hop from one cheap introductory deal to another have gone.
"It's now more important than ever to do your homework to make sure the plastic in your wallet matches your lifestyle needs and spending patterns."
What costs you on 0% deals
When does the interest-free balance transfer end? - Look for a card that will give you the greatest chance of clearing your balance or be prepared to switch again.
What is the fee for transferring your balance? - Look for a card without a balance transfer fee or a card that caps its transfer fee.
Is the 0% better in the long-term - Or would a low lifetime rate actually cost you less? Do the maths and check before you apply to save hassle and money later on.
Payment protection insurance - This is often hard to claim on and offers poor value. Taking out payment protection insurance should not be a requirement for you to take out a card.
To purchase or not to purchase? - Do not make purchases with a card that you have used for balance transfers. Most providers use payments to clear the cheap balance transfers first - this means you will be charged interest on your purchases at the full rate of the card and clear none of this expensive debt until after the balance transfer has been fully paid off.
Recommended ...
Search the UK credit card market with myfinances.co.uk to compare credit cards for the best deals on offer.