UK cards and balance transfers

cards are pretty popular and in widespread use in UK. cards are accepted at most shops and other merchant stores/outlets. As in the US, UK cards too are on offer from various banks and financial institutions. Again, UK cards too offer a number of benefits which vary from one UK card to another (though there are a lot of common benefits too which are same across various UK cards).

Due to the fierce competition in the UK card market, various UK card suppliers offer attractive balance transfer schemes too. There are some UK cards that offer 0% balance transfer for 9 months and there are others that offer 0% for 6 months. However, the catch here is that these UK card suppliers differ on their standard APR rate i.e. the APR rate which comes into effect after the expiry of the introductory 0% balance transfer offer. Further there are some UK cards that do not offer a 0% balance transfer but instead offer a better standard rate (APR) throughout. Some UK card suppliers combine 0% offers with accrual of points on a programme. Another popular thing among UK cards is to combine cash back offers with balance transfers. Then there are some very attractive offers which give 0% not only on balance transfers but also on Purchases (for a short period like 5 month or so). You also have a few UK cards that can be procured by people with bad history too (of course, the decision on approval of such a card application will lie with the card supplier).

So what does one do if one w to transfer balance to another UK card. Well, it’s quite simple. You need to take stock of your current financial situation and determine if a period of 6 months or 9 months (or maybe even 12 months) would be sufficient for you to fully payback the dues on your UK card. If the answer is in the affirmative, just go ahead for the UK card that offers 0% balance transfer for this period (even if the standard APR rate is a bit higher). However, the assumption here is that once you payback the debt on your UK card, you will stick to controlled spending and will pay your card bills in full amount by the due date for payment; otherwise, the choice of a higher standard APR will hit you very hard and you will be in deeper trouble. However, if you think that 9 months is not sufficient to pay back the debt on your UK card, then you should look to strike a balance between the zero APR period and the standard APR rate, and choose a UK card which leads to the least total outgo (you will need to sit with a calculator and calculate the total outgo on various UK card offers).

This is the most basic aspect that you need to consider before you decide on which UK card is the best for transferring balance. Other things like 0% on purchases, reward programmer points etc are secondary things.


Related posts

Leave a Reply