Martin Lewis shares best balance transfer deals: ‘You can’t afford not to’ – rules defined

Martin Lewis kicked off his appearance by first explaining exactly what balance transfers are. He explained that a balance transfer is where a person can get a new card that pays off the debts on old cards (usually for a small fee).

READ MORE

  • Martin Lewis’ brilliant way to get best mortgage deal revealed

So the person owes it instead but at a lower rate, usually at zero percent.

This means all repayments clear the actual debt rather than covering the interest – so people will be debt free quicker.

He revealed that they can be powerful tools as an example from twitter highlighted.

“Alicia” thanked Martin Lewis as she applied and got accepted for a zero percent interest on balance transfers for 27 months.

Alicia can now pay off her two existing credit cards with 29 percent APR.

Martin warned however that because of the current pandemic, the availability of these products has been tightened: “Yet since Covid-19, the market has been shrinking, with tighter credit scoring and many deals pulled.

“Yet a couple of providers are bucking the trend with new cards coming to the market, so there’s still time to sort it.

“The golden rule is if you can’t afford to clear your credit cards, so that you’re paying interest, you can’t afford not to check whether you can do a balance transfer.”

In offering practical advice, Martin highlighted the best existing offers out there for balance transfer products.

DON’T MISS:
Martin Lewis reveals how to protect yourself from scammers [INSIGHT]
PayPal warning: Martin Lewis highlights a worrying new trend [WARNING]
Martin Lewis: How couple could boost savings by £2,000 a year [EXPERT]

Many of these offers will come from companies that customers will likely already be familiar with: “Currently, the longest zero percent is from TSB which gives up to 30months zero percent, with a 2.95 percent fee.

“But as it’s an ‘up to’ card meaning you could get shorter zero percent depending on your credit worthiness (so often unless you’ve a great credit score, it is best to avoid ‘up to’ cards, especially if you’ve high chances on other cards).

“Alternatively, Virgin Money is 29 months zero percent with an ever so slightly higher three percent fee, and if accepted you’ll get the full 29months.”

READ MORE

  • Martin Lewis reveals that SEISS claimants could receive payments soon

He continued: “If you can repay in just under two years though, Santander gives 18months zero percent with no BT fee.

“Or if you have an account with NatWest/RBS then you could get its zero percent BT card for 20 months no fee.

“The key is to go for the lowest fee card in the time you’re sure you can repay.

“Calculate how long you think you’ll take to clear the debt, add a bit for safety, then pick the lowest fee within that time. If you’re unsure, play safe and go for longer.”

However, he warned that not everyone will be able to get these cards and people will need to be careful with their applications.

Credit files and scores will affect a person’s eligibility, as he explained: “When you apply for a credit card the lender will score you based on their own wish list of what is a profitable customer. This involves a combination of your credit history, and also your earnings and whether you pass affordability checks. And right now that can be tough.

“Yet it is important to understand each application you make leaves a mark on your credit file – which can count against you on future applications – so if you get rejected and have to re-apply elsewhere that can be bad news.”

He concluded that people should utilise comparison sights and tools before making decisions.

On top of this, he highlighted that only “soft” credit checks and searches should be performed as these won’t affect a credit rating.

Source: Read Full Article