Before you apply for the card, you should make sure that you have thoroughly researched its features, interests, and terms.
The best credit card companies for 0% APR promotions on money transfers
When comparing different offers for money transfers with no fees, it can be difficult to get a sense of what it is like to work with a particular provider or how quickly problems are resolved.
Which? has evaluated 26 different credit card companies and ranked them based on the deals they offer as well as the quality of their customer service in order to assist you in selecting the best card for your needs.
Find out where top 0% money transfer credit card providers like Tesco Bank, Virgin Money, and MBNA rank among the best and worst credit card companies by reading our reviews of the best and worst credit card companies.
Golden rules for using credit cards for money transfers
There are a few things you need to be aware of and potential pitfalls to avoid when using a credit card that charges you no fees for money transfers. The most important guidelines are detailed down below.
1. Borrow no more than is absolutely necessary.
Your 0% interest money transfer deal does not have a target for your credit limit. To keep from getting into an endless cycle of debt, make it a point to borrow no more than what is absolutely necessary. If you are having trouble managing your debt, you should get in touch with a nonprofit organisation such as StepChange or National Debtline, which can provide you with free advice.
2. At least the bare minimum of the monthly payment must be made.
You are required to make a repayment on your money transfer card that is at least equal to the minimum amount. If you don’t, the service provider might cancel the promotional rate of 0% for the money transfer, which would mean that interest would start accruing right away. Your credit report might also reflect the fact that you failed to make a payment.
3. Do not use when withdrawing money from an ATM.
Even with a credit card that charges no fees for money transfers, it is extremely unwise to withdraw cash from an ATM using a credit card.
Withdrawals of cash are handled in a different manner than wire transfers, so the interest rate on cash withdrawals is typically higher. Because your 0% interest period for money transfers will no longer apply, you will immediately be subject to interest charges on these transactions.
4. Formulate a strategy to repay the debt before the accrual of interest begins.
Make sure that you have a strategy for paying off your balance before the introductory period of 0% interest expires and you are required to begin paying interest on the balance.