Credit card Guide

Transfer your Christmas credit card balance

By Hazel Cottrell
hazel.cottrell@consumerchoices.co.uk

Want to clear your Christmas debt? This guide shows you how to save hundreds of pounds with a 0% balance transfer credit card… (15/1/10)

Two-thirds of Brits made financial resolutions this New Year, with many hoping to clear their Christmas debts as soon as possible. Are you one of them?

If you put Christmas on credit and are now paying interest on your debt, this guide is here to help you. Depending on the size of your outstanding balance, transferring it to a 0% balance transfer credit card could save you hundreds of pounds.

Here we take a look at the best 0% balance transfer deals available and show you what to watch out for when choosing a card.

Top balance transfer credit cards

Company	Package Name	Balance Transfer Rate & Period	Balance Transfer Notes	% Typical APR
	Virgin Credit Card	0% for 16 months	2.98% transfer fee	16.6%
	Post Office Credit Card	0% for 12 months	2.98% transfer fee	16.9%

Which are the best 0% balance transfer credit cards?

At the time of writing, the two most attractive 0% balance transfer credit cards available are the Virgin credit card (for its bumper 16-month balance transfer period) and the Post Office credit card (for its anniversary transfers offer). Here’s more information on both cards:

The Virgin credit card (www.virginmoney.co.uk)

The Virgin credit card offers the longest 0% balance transfer period on the market at 16 months. This means, if you transfer your balance in January, you have until May the following year to pay off your balance, without paying any interest.

On top of this it offers Virgin discounts including 10% off Virgin Holidays and Virgin Wines, one month free at Virgin Active, and exclusive savings with Virgin Media.

Plus it comes with free travel accident insurance which covers you up to £250,000 if you have an accident while you are travelling to and from destinations if your travel tickets were bought on your Virgin credit card.

The balance transfer fee is 2.98% and the standard APR is 16.6%.

More information on the Virgin credit card

The Post Office credit card (www.postoffice.co.uk)

The Post Office offers a 12-month 0% balance transfer period, which is fairly long but can be beaten by other cards on the market (see below).

However, what makes the Post Office credit card so attractive is the fact that it offers cardholders additional 0% balance transfers for five months on their first and second anniversary of having the card.

So, if you took out a Post Office credit card in January, you would have until the following January to clear your balance without paying any interest. Then, you could transfer another balance to the Post Office credit card and benefit from 0% interest for five months. You could then repeat this the following January.

This card may suit you if you tend to overspend every Christmas and would like to secure January breathing space for the next few years.

The balance transfer fee is 2.98% and the standard APR is 16.9%.

Are there any other good 0% balance transfer cards are available?

Yes, as well as the two cards featured above, there are several other good 0% balance transfer deals available. Compare 0% balance transfer credit cards now to see what’s on offer.

At the time of writing, alternatives include:

The BT credit card (www.bt.com) offers 0% on balance transfers for 13 months, plus money off your BT bill
The MBNA Platinum reward card (www.mbna.com) offers 0% on balance transfers for 13 months, plus MBNA reward points
The Egg credit card (www.egg.com) offers 0% on balance transfers until March 2011 and free travel accident insurance
The Barclaycard Platinum card (www.barclaycard.co.uk) offers 0% on balance transfers until February 2011
The Sainsbury’s credit card (www.sainsburysbank.co.uk) offers 0% on balance transfers for 10 months, plus double nectar points on Sainsbury’s shopping for two years.

Top tips on choosing the best 0% balance transfer credit card

If you want to make sure you get the best 0% balance transfer credit card available to you, follow these top three tips:

Check your credit rating before you apply – Checking your credit report is quick and easy and will give you a good idea of how you look to credit card companies. It will also give you the chance to correct any mistakes on your report to give yourself the best chance of being approved for a new card. Check your credit report now.
Check the lending criteria – Increasingly, credit card providers state their lending criteria on their websites. This information is very useful and worth checking as it gives you a better idea of whether you might be approved for a card.
Find out who owns the credit card – 0% balance transfer deals are often only open to new customers. Even though the cards may have a different name on them, if they are owned by the same bank or banking group you may not be able to switch between the two. So, check who owns the credit card you want before you apply for it.

Compare 0% balance transfer credit cards