If you have watched your credit card monthly repayments steadily grow you may want to consider transferring your balance onto a new card. Often low interest credit cards offer 0% balance transfer periods to new customers. This means that you can transfer your balance and pay no interest on the amount for a time. Some financial experts even go so far as to recommend that you transfer your balance again and again in order to make bigger savings. Other experts point out that this may have an adverse effect on your credit rating and that card companies are wising up to serial transferors. Either way, transferring your balance onto a new card is often a good idea.



The hardest part of the whole balance transfer process has to be finding, applying and being accepted for a new credit card. Luckily the Internet has made things a lot easier and sped up the application stage no end. You can compare literally hundreds of cards online and even apply for them at their official websites. Financial experts make a point of saying that you must look carefully at your own finances before taking on any form of credit. Not only will this help you find the perfect card but an honest look at your situation will ensure that you can make repayments.

Once you have your new low interest credit card you can transfer your existing balance fairly easily. Sometimes you can even arrange for your balance transfer as part of the initial application process. You will be asked details of the amount you want to transfer and the account details. The card company then arranges for the transfer to be made. If you don't transfer your balance with your application you can always do so at a later date. Often you will be sent forms to apply for a balance transfer on a regular basis.

0% balance transfer offers vary, depending on the card company involved. At present, the length of time these transfer offers last ranges from around 5 months to 15 months. Some cards work slightly different and give an offer period that expires on a specific date, for example January 2010. It is wise to look at what other benefits the card has to offer and not to simply go for the card with the longest offer period. The aim of the card company is to have the offer period expire with some of the transferred balance still outstanding. In this way the card company can start charging interest on the amount and make a profit. It is a good idea to make sure that you can pay off the balance within the offer period.

Another major consideration when planning to make a balance transfer onto a low interest credit card is any balance transfer fees. Some cards allow for free balance transfers but these are becoming increasingly rare. The average balance transfer fee is around 2.5% although, once again, some are higher and others lower. If you transfer a 1000 balance onto a card with a 2.5% fee you will be charged 25 to do so. This fee is charged to your new credit card. Cards with longer 0% periods often have greater fees and you will need to look at a particular offer in its entirety in order to see if it is worthwhile.

As you can see transferring a balance onto a low interest credit card is fairly straightforward and can help to save money. As mentioned above some financial experts recommend that you transfer your balance every time the offer period draws to a close. Other advisors point out that this can have a negative impact on your credit rating. Card companies may frown on serial balance transferors, who have become known as 'card tarts'.