Balance transfer

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can someone just clarify for me what a balance transfer is and basically what you get charged , well if there are any hidden charges in doing as i see alot that say 3% this and 3% that. also with a balance transfer do you get charged interest for it?
i know i sounds like a dumb question but this aspect of creidt cards has always confused me a bit!!:confused:

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  • pre123
    pre123 Posts: 129 Forumite
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    tracy24582 wrote: »
    can someone just clarify for me what a balance transfer is and basically what you get charged , well if there are any hidden charges in doing as i see alot that say 3% this and 3% that. also with a balance transfer do you get charged interest for it?
    i know i sounds like a dumb question but this aspect of creidt cards has always confused me a bit!!:confused:


    read martins page
    http://www.moneysavingexpert.com/cards/balance-transfer-credit-cards

    basically you can transfer a debt from a card to another
    for example, you owe £1000 on a card at 20% apr
    you apply for a new card with 0% apr for 12 months with a fee of 3%#
    so you owe nothing on the old card once transfered and pay 0% interest for the first 12 months on the new card where the debt has been transfered too but you pay the card company 3% (£30 for £1000) for doing the transfer.

    this way will reduce interest payments by loads.. on £1000 at 20% you pay £200 in interest but the new card charges you 0 interest + the fee of £30 saving you £170 for a balance of just £1000 (rough and easy sums, will be different with payments etc but you get the idea:p)
    please just thank me:p
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