If you need a bit of a cash injection to pay for Christmas but don't want to worry about interest adding to the bill, thoughts often turn to 0% purchase credit cards
– but what about those that offer money transfers instead?
A money transfer allows you to move money from your credit card to your bank account, essentially giving you a 0% loan for a set period of time. Like with 0% balance transfers, the term expires after a certain number of months, and there's normally a transfer fee to pay, which you'll need to factor into your costings. But, if you're confident you'll be able to repay the amount transferred before the 0% period ends, a money transfer could be a great way to give your finances a boost.
Just bear in mind that these offers are less common than balance transfers, and you typically won't find them marketed as 0% money transfer cards – rather, they often form part of a 0% package on a 0% interest or balance transfer card, so it's worth doing a few comparisons to find the deal that's right for you.
Currently, the top option available comes from Tesco Bank, with its Clubcard Credit Card for 28 Months Balance Transfer Mastercard offering 28 months of interest-free money transfers, matching its 0% balance transfer term, with the same deal on offer from MBNA's All Round 28/28 Credit Card Visa.
Virgin Money has another great option, with its 26 Month All Round Credit Card Mastercard offering a 26-month term for both balance and money transfers, while MBNA's Platinum 31 Month Balance Transfer Credit Card Visa offers 24 months of 0% money transfers alongside its 31-month balance transfer term.
If you've already got a credit card, it's worth checking to see whether your current provider could offer a money transfer deal as well; that way, you needn't wait to apply for a new card, and can start the transfer process straight away.
However, as with any form of credit, it's important to stop and carefully consider the options before you take the plunge. A money transfer should only be considered if you're confident you can afford to pay back the amount borrowed by the time the promotional period ends, and you'll want to be certain that your credit score
is up to scratch before you apply (many credit check providers, such as Experian, offer a free trial for you to check your report).
But, if you meet the criteria and are confident you can afford to pay everything back, a money transfer could be a great way to get a cash boost for the upcoming festivities – check out the top 0% interest credit cards
to see if there's the perfect deal for you.