Make the most of 0% credit card deals

Comparison service Moneyextra.com has just released a guide full of hints and tips to allow you to get the most out of your balance transfers.

In it, it gives you lots of helpful advice and warns you of any pitfalls or dangers in advance.

Moneyextra’s senior editor, Robin Amlot says,”Plastic can be very powerful but beware it doesn’t turn round and bite you.

The days when you could pick a card, any card and hop from one cheap introductory deal to another have gone.

It’s now more important than ever to do your homework to make sure the plastic in your wallet matches your lifestyle needs and spending patterns.”

What costs are involved in 0% deals?

• fees for transferring your balance. Often cards will charge a fee for this. Some do offer to cap the figure-always check.
• check how long the interest free period will last for. If it is really not practical for you to clear the balance within the given time frame, then choose again or consider switching at the end of that term, otherwise it will cost you more in the end and the whole process has been false economy. For larger balances a low lifetime rate may be worth considering and cost less overall.
• payment protection insurance. Generally the industry as a whole view this as poor value for money and experience shows that they can often prove hard to claim on. You shouldn’t have to take this on when taking out a credit card.
• future purchases. Whichever card you use for transfer balances, keep just for that purpose. If you added future purchases onto the same card you could be out of pocket since many providers use your repayments to clear the cheapest balance first, so your main debt may not be getting cleared in addition to your latest purchases being charged at full interest rates.