FM2 - Getting Credit cards to save you money

Used sensibly, credit cards are a safe, useful and convenient way to pay for goods and services. However, as recent press coverage has shown, borrowing on credit cards is not wise. These days, it is possible to save a lot of money by switching your debt to one of the fifty or so credit cards that offer low or no interest on debt transfers for introductory periods. For example, if you transfer a balance of £3000 from a card charging monthly interest of 1.5% to the Halifax Platinum Visa (a market leading 0% for nine months) you would pay £381 less in interest.

The Top Five:

Ÿ Halifax Platinum Visa offers a 0% balance transfer introductory period of nine months and has a standard rate of 12.9%.

Ÿ Barclaycard Classic Visa offers a "0% balance transfer for life" rate, but this requires minimum spending of £50 a month on your card, which will attract interest at between 11.9% and 24.9% APR, depending on your credit rating. Their standard rate is 17.9%.

Ÿ RBS Advanta’s RBS Advanta card offers a 0% balance transfer introductory period to 1 June 2004 and has a standard rate of 12.9%.

Ÿ Lloyds TSB’s Createcard offers a 0% balance transfer introductory period of 6 months and has a standard rate of 12.9%.

Ÿ Accuard’s Mastercard offers a 0% balance transfer introductory period of 6 months and has a standard rate of 12.9%.

Some cards charge no interest on balance transfers, but charge the full whack on all your purchases and cash withdrawals. Because your repayments go towards paying off your cheap debt first, it’s a good idea to go for a "0% on both purchases AND transfers card" such as:

Ÿ Halifax’s Platinum Visa card offers an introductory period of 9 months and has a standard rate of 12.9%.

Ÿ RBS Advanta’s RBS Advanta card offers an introductory period to 1 June 2004 and has a standard rate of 12.9%.

Ÿ Nationwide’s Visa Classic card offers an introductory period of 6 months and has a standard rate of 13.9%.

Ÿ Citi’s Platinum Visa card offers an introductory period of 6 months and has a standard rate of 13.9%.

Ÿ Marbles’ Visa card offers an introductory period of 6 months and has a standard rate of 14.9%.