Balance transfer credit cards are cards that are ideally suited to serving as rollover credit card accounts for those who are looking to simplify their finances by merging all of their credit card account balances into one single account. This process helps the consumer gain control of his or her finances by simplifying the process of paying and also has the potential to save the consumer money if the balance transfer credit cards offer competitive interest rates or other perks.

For those who are credit savvy and financially responsible, using a balance transfer is an excellent way to borrow interest free money for various financial planning purposes. One of the most common uses for balance transfers is to use low interest rate or 0% apr balance transfer credit cards to pay off high interest credit card debt. Another common use for balance transfers that people frequently use is to incorporate them as part of an emergency fund. Properly used, they can help carry the cardholder through difficult financial times when the cardholder is temporarily cash strapped and in immediate need of a temporary infusion of interest free money to pay off short term liabilities.

balance transfer credit cards

If you do intend to use your plastic for further shopping, then make sure you opt for a card that offers 0% on balance transfers and purchases. The time periods of these two 0% deals might differ, so make sure you don’t keep spending on your card once the 0% offer has expired. Therefore, if your 0% purchase deal has expired but you still aren’t attracting any interest on your balance transfer, then your payments will be used to pay off the transferred balance rather than new spending.

The crux of this, is that you will end up paying more in interest as your purchase debt (possibly attracting interest of around 18% apr) will not reduce until the balance transfer is paid off. The top 0% balance transfer deals tend to all have negative payment hierarchy, so it might be worth having two credit cards, one for balance transfers and one for new purchases. Remember, if you do go for a 0% balance transfer deal then work out exactly what you need to pay each month, so you completely clear the debt before interest kicks in.

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