What is a Balance Transfer and How Can It Help You Save Money?

Let's talk about a smart little trick that could save you some serious cash if you're dealing with credit card debt - it's called a balance transfer. I know, sounds kind of boring, right? But stick with me here.

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What is a Balance Transfer?

Think of it as moving your credit card debt from one card to another, kind of like changing seats to get a better view. The cool part? Your new card usually comes with way lower interest rates (sometimes even 0%!) for a while. So instead of watching your money disappear into interest payments, more of it goes toward actually paying off what you owe. Track your balance transfer with Incredible’s promotional rate tracker.

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Why would you want to do this?

Picture this: you're stuck paying sky-high interest on your current card, and it feels like you're running on a treadmill - lots of movement but getting nowhere. Moving that balance to a card with 0% interest for a while could be your ticket off that treadmill. Plus, some card companies throw in sweet perks just to get you to switch over.

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Before You Jump In...

Here's the real talk about what you need to know:

• You can't transfer balances with cards from the same bank - no transferring between two Barclayscards, for instance
• There's usually a minimum transfer amount (typically £100), and you can't go over your new card's limit
• Missing payments is like shooting yourself in the foot - you'll lose that low interest rate quickly
• Watch out for transfer fees - usually 3-5% of what you're moving over
• Most cards give you about three months to make the transfer if you want the special rates

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Making It Work For You

The secret sauce to making a balance transfer work? Having a game plan. Here's what you should do:

1. Shop around for cards with good 0% offers - but use those eligibility checkers so you don't ding your credit score
2. Once you've got your new card, move that balance over ASAP (online or phone works)
3. Get serious about paying it off before that 0% period runs out. With Incredible, you can set up an automated payment for your balance transfer and any of your other credit cards. Learn more about how in our detailed blog on IncrediPay. 

Pro tip: Try not to use your new card for shopping. It's tempting, but mixing new purchases with your transfer can get messy fast.

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One Last Thing...

You know what makes all this easier? Having a system to keep track of everything. Whether you use an app or good old-fashioned spreadsheet, staying organised is key. Set up those payments, mark your calendar for when the intro period ends, and watch that balance shrink.

Remember, a balance transfer isn't magic - it's just a tool. But used right, it can be a pretty powerful one for getting your finances back on track.

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Incredible makes managing and paying multiple credit cards easier. Incredible is now available on the App Store and Google Play Store - start your journey to better financial health today!