Balance transfer cards 'should not be used for purchases'

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www.moneynews.co.uk > Credit cards > Balance transfer cards 'should not be used for purchases'

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Balance transfer cards 'should not be used for purchases'

It seems consumers are beginning to hold back on using their balance transfer credit card for making purchases, according to the UK payments association Apacs.

Spokesperson Sandra Quinn explained that balance transfer cards should be used solely for balance transfers, rather than attempting to use the plastic for buying things.

Her comments came after price comparison website Moneysupermarket discovered that by missing just one month's payment on a balance transfer credit card could leave the consumer £278 out of pocket as well as potentially damaging their credit rating.

Ms Quinn said: "The point is that if you are taking out a balance transfer card you should only use it for balance transfers. Don't do other things with it. I think increasingly people are starting to realise that."

Moneysupermarket's research found that almost two thirds (62 per cent) of credit cards with zero per cent introductory balance transfer rates will revert to a normal APR should a card-holder fail to make one payment.

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