|Bookmark this page! |
Gold Credit Cards
UK Gold Credit Cards -- Two Ways To Save On Balance Transfers
UK gold credit cards offer consumers a choice of savings options on balance transfers and purchases. It all depends on what works best for you. Do you want a 0% promotional rate on balance transfers and purchases for a limited time? Or would you prefer a low promotional interest rate on balance transfers and purchases for an extended period?
If you transfer a high-interest balance to your UK gold credit card and are able to pay it off before the promotional period ends, you'll save big with a 0% promotional interest rate. Some gold cards offer a six-month 0% promotional period, followed by regular interest at around 17%.
When you transfer a balance from a card that charges higher interest, you'll still save on interest at the end of the promotional period. Expect to pay a 3% balance transfer fee, and be sure the fee does not offset what you'll save on interest.
A benefit of the gold card 0% promotional offer is that you can also get six months of zero interest on purchases, with up to 59 interest-free days. If you pay your balance in full every month, you won't be charged interest, even after the promotional offer expires.
If you plan to transfer multiple high-interest balances to your gold card, you may be better off with a low promotional interest rate that extends for the lifetime of the balance. You can get a low promotional balance transfer rate of about 9%. That's less than almost all credit card rates. An added advantage is that you have up to 90 days to transfer additional balances and still get the 9% rate for the lifetime of the balance. You can also get up to nine months of 9% interest on purchases.
An advantage of the promotional 9% offer is that you can get it without a balance transfer fee, which means additional savings. You'll also get up to 56 interest-free days if you pay your balance in full every month, as long as you aren't carrying transferred balances.
For the biggest savings, opt for a 0% promotional offer if you're reasonably sure you can pay off the entire transferred balance before the end of the promotion. If you want an extended period to repay the transfer, or if you will be transferring a large amount of debt, go with the 9% interest rate for the lifetime of the balance.