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3.1. Key facts about balance transfers

Balance transfer offers provide a low promotional interest rate that can save you money and make it easier to pay your existing debts. They also come with a lot of rules and possible pitfalls that can lead to more debt if you’re not careful.

By learning about the following 10 balance transfer facts, you will be able to make better use of this feature if and when you need it.

Key Balance Transfer Facts

  • The amount of debt that you can transfer to a new card is based on your approved credit limit.
  • Depending on the credit provider, you could be able to transfer between 70% to 100% of your new credit limit.
  • In some cases you may only be approved for some of your requested balance transfer.
  • If you’re not happy with the limit you have been assigned, you can cancel the card or try to renegotiate the limit to suit your balance transfer.
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3.1. Key facts about balance transfers

  • The balance transfer is made after you activate the card and could take between 10-20 working days to be processed.
  • New purchases will be charged interest at the purchase rate.
  • There are no interest free days when you transfer a balance.
  • You will still have to cancel your old card if you don’t want it any more.
  • Balance transfers can take a few weeks to process, so you will still have to meet any payments on your old cards until the balance transfer has been completed.
  • The introductory period varies between cards. When it expires, you will pay a higher rate of interest, usually the cash advance rate.

Balance transfers are not a good debt solution for everyone, so you should consider these points and your individual circumstances before deciding to apply for any balance transfer offers.