Credit Card Expert

Balance Transfer Fees

In a world where debt and credit have become a product of society, balance transfers are still an effective way for the displined customer to manage their finances. Gone are the days of balance transfers without fees. This is due to ‘rate tarts’ who ‘card hopped’ to avoid paying interest. There are still some good deals to be found though as two thirds of adults have at least one credit card and the credit card market is forever expanding. With over 300 credit cards now available, and with supermarket chains getting in on the act, the competiton is fierce thus allowing customers to benefit from ‘better deals’.  The main thing for a customer to remember when dealing with balance transfers is to choose a deal that reflects their financial position and to exercise caution at all times.

Leading the way at present in the balance transfers field is HSBC who are offering ‘0% interest on balance transfers until 2nd April 2008’.  It comes with limitations, as all offers do. Existing HSBC, First Direct or HFC customers cannot apply and a 2% fee to switch has to be paid.  Also getting in one the act of extending their 0% balance transfer offers are Virgin Money who have increased the time on its MasterCard (2.5% fee) to 13 months. The Abbey and the Cheshire Building Society are also offering a 12 month 0% balance transfer.

Morgan Stanley’s ‘Buy and fly’ card is a good option for any customer looking for a capped balance transfer fee. It only offers nine months of free credit but it caps the balance transfer fee to £50.

Not every customer will feel comfortable with ‘juggling’ one balance transfer after another and for these individuals there is the option of a lifetime balance transfer card. These cards offer low fixed rates which do not alter at any stage while the customer pays off the balance of the card. Unfortunately fees have been introduced for lifetime balance transfer cards but they are still worth investigating. Marks & Spencer Money and More Mastercard offers a 3.9% interest rate %pa with no fee plus 0% on purchases for a year. Its closest rival is Citi Online Platinum Life of Balance Mastercard which has a 4.9% interest rate pa and a 2.5% up to a maximum of £75 fee.
As long as the customer follows the rules of Balance transfer fees and ensures that their financial situation reflects their chosen methods; balance transfers are still a productive way for a customer to gain some financial reprieve.

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