If you have recently, made a balance transfer from one credit card to another, did you read the small print of your credit card agreement?
Did you realise that in many cases missing the monthly payment date for your new credit card could see your new 0% balance transfer deal withdrawn?
Many UK credit card companies have now included this term in their credit card terms and conditions. If you are late, even by just one day, with any monthly payment then the 0% promotional introductory interest rates applicable to your card may no longer apply.
In other words, if you miss a payment for any reason, then you will no longer have a low rate or 0% balance transfer deal. Note, that this does not apply if you have agreed payment holiday with your card company because of Coronavirus. Instead your remaining balance transfer will be charged at the full standard balance transfer interest rate of the card, probably around 18.9% or higher.
If your introductory balance transfer rate is withdrawn, then the default standard balance transfer APR interest rate will usually apply from the beginning of the statement date in which you missed a payment.
Direct Debit Could Save Your Balance Transfer
To avoid losing your balance transfer in this way, here at Balance Transfer Expert, we strongly recommend that you set up a direct debit instruction for your new credit card. This monthly direct debit should be for at least minimum payment amount each month.
You can always make additional monthly payments over and above the minimum payment and we would recommend that you always do. You can make additional payments to your credit card company in most cases by bank transfer, cheque or by debit card.
Setting up a monthly direct debit in this way will ensure that your balance transfer is not at risk from simple unexpected events like forgetting to make a payment, or any strikes or weather delays that may occur with the postal service.
Read more of the latest balance transfer tips from Balance Transfer Expert.