Are looking for a new balance transfer credit card?
Or have you just transferred your outstanding balance to a new credit card with an introductory 0% deal on balance transfers.
If so, then you need to pay close attention to the credit limit you have been given.
The credit limit you are given by the credit card company determines the maximum balance transfer amount you can actually transfer. In addition, this credit limit also pays an important part in ensuring that you keep the 0% interest rate for the full length of the introductory offer.
Watch Your Credit Limit
Almost all credit card companies now have it written in the terms and conditions of their credit card agreement that if you exceed the credit limit you have been given, then the promotional 0% interest rates will no longer apply.
In other words if you go over your credit limit for any reason, then you will no longer have a 0% rate balance transfer deal. Instead your outstanding balance transfer will be charged at the standard APR interest rate of the card. This is often the standard rate of interest on the card which is typically about 18.9%.
Going over your £2000 credit card limit for example by even £20, could be very expensive if you lose your 0% introductory offer.
If your introductory balance transfer rate is withdrawn, then the standard interest rate will usually apply from the beginning of the statement date in which you exceed your credit limit.
It is therefore, very important that in order to benefit from the introductory deal on balance transfers that you do not exceed your credit limit. If you have transferred a large balance and are close to your credit limit, be very careful about also using that credit card for purchases, even if your credit card also an introductory 0% or low rate offer on purchases.
For your peace of mind and to ensure that your 0% balance transfer deal is safe you may wish to use another credit card for any day to day spending.
Read more of the latest balance transfer tips from Balance Transfer Expert.