Balance transfer credit cards are plenty at the moment and recently there has been a real war of providers about who is going to offer the longest 0% period. But if you want to use one of these credit cards for paying off your debt, there is more than just interest-free period to look out for. Some catches make the process of choosing a balance transfer credit card a bit less straightforward as it seems. Let’s have a look at them.

First of all, you should make serious and realistic calculations and decide over which period you can expect to pay off your debt. Taking out a balance transfer card and then making only the minimum payments is a dead-end as it won’t diminish the sum you owe, and at the end of the interest-free period you will be hit by the credit card interest, and those are pretty high. Always try to pay as much as possible into your balance transfer card, maybe by setting up a standing order.

Another problem is that it is not possible to transfer balance between credit cards of the same provider, and it is not always clear who the provider is from the name of the card. Make sure you know who the issuer of the credit card you are planning to take out is, BEFORE applying for it. (See a list of credit cards and their providers).

And, finally, it is important to know that in the last four years balance transfer fees have been slowly growing, meaning that the longest interest-free deals currently available generally come with higher transfer fees, sometimes reaching as much as 3,5%. Do not simply go for the card with the longest 0%interest, because a shorter offer might come with a smaller balance transfer fee. (See Credit Card Balance Transfer Fees).