What are Balance Transfer and Purchases Credit Cards?
Balance Transfer credit cards offer a 0% balance transfer from your existing credit card over an initial promotional period. Purchase credit cards will furnish you with 0% on purchases during a similar period.
You could save approximately £250 in interest if you transfer a balance of £1500 to the Halifax One Card (www.halifax.co.uk), and spend the minimum monthly rate of £150. This card offers 12 months on new purchases and balance transfers.
What are the benefits of these two cards?
These cards allow you to take advantage of two of the most attractive credit card offers available, and obtain a rate of 0% interest on balance transfers for up to 15 months, and 0% on any purchases for up to 12 months.
What else should I know about Purchases & Transfers Credit Cards?
A fee in the region of 2.5% is charged to transfer a balance to a new card. The 2.5% fee relates to 2.5% of the balance being transferred (if you’re transferring a balance of £3000, the fee equate to £75).
You can’t transfer debt between two cards owned by the same banking group, for example, from a Natwest card (www.natwest.com) to a RBS card (www.rbs.co.uk). Both banks are part of the RBS group.
Beware of one offer finishing before the other, as any repayments you make are likely to be paying off the cheaper portion of your balance. Therefore, you will be racking up high levels of interest on the other, more expensive part.
For more information read our transfers and reward credit card guide.
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