There are almost as many credit card deals as there are people to take them on. A brief browse of the banks, card providers and price comparison sites reveals a seemingly endless list of cards with a dazzling array of offers, rates, fees and perks.
So it's inevitable that whatever card you took out a few months or years ago, there will be a different deal around today (and again in six months' time). So can you transfer your balance from one to another?
If you have two credit cards and you want to transfer the balance (or some of it) across from one to the other, all you have to do is inform the supplier provider of the 'destination' credit card of the other card’s details and the amount you want to transfer, and they will do the rest.
You can usually do this over the phone or online, or perhaps in a bank if the card is affiliated with it.
You may be charged for the transaction, either as a fixed fee or a percentage of the transferred amount.
You don't have to have two existing credit cards to perform a balance transfer. There are cards specifically designed for the purpose, known as balance transfer cards. They often have very attractive introductory interest rates, which can be as low as 0%. That means you can pay off your balance for the duration of the special offer without paying a penny in interest.
There are two reasons why customers choose to transfer their balances.
There are a few things to take notice of before you make a transfer:
Since the noughties, card companies have been in strong competition to offer more attractive rates for new customers. While some offer treats, bonus points and discounts on certain products, a long interest-free period is what many customers go for, as it's essentially like getting a free loan, usually with a one off handling fee.
When you're looking for a card that's right for your balance transfer, a long interest-free period is almost certainly the offer that will save you the most money as long as you keep up with minimum payments.