Credit card balance transfers

A credit card balance transfer simply means moving your debt from one card to another. It's often a good way to save money, as many credit card companies offer an interest free period on balance transfers to new customers.You can even consolidate your debts by transferring the balance from more than one card. Or, you might find a lower interest rate than the one you are currently paying.

It's straightforward. You apply for the new credit card and, if your application is accepted, you can transfer your existing balance by giving your new card issuer the details of your old card.

You may need to transfer your money as soon as you get your new card to be eligible for the introductory offer. Many credit card companies have online banking so you can do the balance transfer yourself. You can also transfer existing debts from store cards.

Some credit card companies now charge a transfer fee so be aware of this too. We will, however, take this into account when we calculate your results.

Read the small print. For example, if there is not a 0% rate for purchases, you will have to pay interest on these at the standard rate. Any repayments you make will go towards your balance transfer, so you will pay interest on purchases until you have paid the balance transfer in full.

If you choose a card that offers 0% for the life of the transferred balance, watch out for a 'minimum monthly spend' clause used by some card issuers. If you fail to meet this minimum level, you'll have to pay the typical interest rate on everything.