Balance Transfers

As the credit card market has become more competitive card issuers are encouraging existing card holders of other companies to switch credit card balances to their card. One incentive is to allow the balance transferred to the new account from the old card to be interest free for a period of time, perhaps 6 months.

Some times loan balances or overdrafts from other providers can be switched under a balance transfer. However read the small print very carefully as there may be certain conditions in relation to new spending volumes and outstandings which have to be met before you receive the full advantage of the offer.

It is not unknown for certain people to regularly take up these offers and switch every 6 months to a new issuer offering balance transfers thereby gaining a much longer period of interest free borrowing. These individuals are known in the business as 'credit card tarts'