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 the consequences of missing the monthly payment date for your new credit card? This could, in many cases, see your new 0% balance transfer deal withdrawn?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 with any monthly payment, then the 0% introductory interest rates may no longer apply. This may happen even if you miss your payment by just one day,
So, if you miss a payment for any reason, then you will no longer have a 0% balance transfer deal. Instead your remaining balance transfer will be charged at the full standard balance transfer interest rate of the card. These rates, for example the standard existing customer Barclays balance transfer rates, will be around 19.9%, or even higher.
If your introductory balance transfer rate is withdrawn, then you will pay the default standard balance transfer APR interest rate. This 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, 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. In fact, 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 interest free balance transfer is not at risk from simple unexpected events. This could include you 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.