Transfer Balances for Credit Cards

Sainsbury Finance has estimated that about 716,000 residents in the UK will try to transfer balances between credit cards. Of that number about 1.1 billion pounds per month is going to be transferred between cards. There are about 80 cards currently offering zero percent APR on balance transfers, which is one of the reasons there are so many individuals looking to possibly transfer their balances. The bad news is that of those 80 cards about a third of them offer less than six months of zero percent APR. Most of the 80 cards offer about nine months for the zero percent interest, with some even offering twelve months of interest free.

Research is showing that most of the balances being transferred are around an average of 1,555 pounds, but one in ten of the transfers being made have more than 4,000 pounds. There is still a great market for cards that will offer balance transfer deals. At least 40 percent of card holders believe it will take longer than a month to clear up their current balances, which is why they seek some type of reprieve that is interest free.

The point in this study is to make individuals more cautious about switching cards. There are a number of offers available, but they all have different periods of interest free rates. So when choosing a card you need to consider what else it might offer such as purchase discounts or cash back. Some of the cards on the market are offering interest free even on purchases for a month to twelve months.

15 percent of people in the South West, who were polled said they would transfer balances. This number is the highest percentage in Britain when compared to the five percent in Wales or Scotland that said they would transfer funds. Some of the options are pretty great when you consider the cash back rewards even at 2%. For example if you spend a hundred pounds a week you get 104 pounds back during the end of the year for purchases. This could be worth it if you use it on groceries for the rewards.