Uk Credit Card Balance Transfers

Written by Ingrid Chen
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Credit, in the financial sense, is the establishment of a loan or debt, depending on the context. With credit card ownership in the UK at an all-time high, it is not uncommon to find consumers brandishing cards when making purchases large and small.

How Credit Card Balance Transfers Work

Many individuals choose to stick with one card for credit purchases. However, it may be advantageous for particular consumers to transfer a credit balance from one card to another. This is wise in a situation such as finding a credit card with a lower rate of interest and fees than the existing card. It is especially smart when the new card carries a low or zero rate of transfer.

In other words, credit card companies offer special rates to try to lure customers into transferring any existing credit balance onto a new card owned by that company. In many cases, this is beneficial for both parties--the credit card company gains a new customer, and the customer enjoys the benefits of a lower rate of interest.

While it may seem tempting to try to transfer a credit balance from card to card after that initial low or zero interest fee period is over, it is hard to keep up with especially if the credit balance is high to begin with. Individuals who attempt to do this may lose track of spending habits and might even find themselves in deeper credit trouble. While this is not the case for everyone, it is wise to take careful and deliberate steps when establishing credit. Your credit will affect every major purchase or loan you take, and having a shining credit record will make your financial life much easier in the long run.

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