These cards offer lengthy interest-free periods to allow you to pay off your balance and save on interest payments. You’ll most likely have to pay a small fee of between 1% and 5% of the balance transferred to get the longest interest-free periods.
*£765.24 is a representative example of the interest a customer would save in the first 12 months. Example based on a £3,500 balance transferred from a card with 29.8% APR to a 0% card for 30 months, then 24.9% (variable), with a fixed monthly payment of £175. Representative APR 24.9%. Representative example calculated using the median interest rate of cards on our site and the median balance request from our customers looking for a balance transfer card using Uswitch's eligibility checker in August 2024. Terms offered depend on your financial circumstances and borrowing history. Interest rates and zero-interest balance transfer period may vary. Updated November 2024.
Balance transfer credit cards are designed to let youmove debt from one credit card - or several - to another cardfrom a different provider.
The aim is to switch to a credit card that charges a lower rate of interest, or even no interest, for a set time so that you save money. Because more of your repayments will go towards paying off your debt rather than interest, you’ll alsoclear your debt faster.
When you get abalance transfer credit card, you pay off the balance on your existing credit card or cards using your new credit card. You then make repayments on your new balance transfer card to pay off the debt.
Here's an example of how this works:
Your current credit card has an outstanding balance of £4,500, and you're being charged interest each month on the balance
You decide to apply for a balance transfer card which offers a 24-month interest free period
You complete an application for the card that's with a different provider
During the application, you provide details of the credit card balance you wish to transfer
To take advantage of the interest free period, you notice you'll have to accept a balance transfer fee of 3%
You weigh up the cost of the transfer fee against what you currently pay each month in interest
If you have a0% balance transfer credit card, you won’t be charged interest on the transferred balance for the duration of the interest-free period, and so you may be able to repay the debt faster.
These cards offer lengthy interest-free periods to allow you to pay off your balance and save on interest payments. You’ll most likely have to pay a small fee of between 1% and 5% of the balance transferred to get the longest interest-free periods.
Although many providers charge a transfer fee when moving over a balance, some don’t. However, fee-free balance transfer cards usually offer shorter interest-free periods – the longest you’ll currently get is around 14 months. Work out how long you need to pay off your balance and if you need more time, it’s probably better to pay the fee and opt for a longer 0% deal.
These are often known as “combo cards” and enable you to carry out a balance transfer and make purchases interest-free on the same card. Having two separate cards for different purposes can make it harder to keep track of your finances, so a combo card can help simplify things.
These cards offer lengthy interest-free periods to allow you to pay off your balance and save on interest payments. You’ll most likely have to pay a small fee of between 1% and 5% of the balance transferred to get the longest interest-free periods.
Although many providers charge a transfer fee when moving over a balance, some don’t. However, fee-free balance transfer cards usually offer shorter interest-free periods – the longest you’ll currently get is around 14 months. Work out how long you need to pay off your balance and if you need more time, it’s probably better to pay the fee and opt for a longer 0% deal.
These are often known as “combo cards” and enable you to carry out a balance transfer and make purchases interest-free on the same card. Having two separate cards for different purposes can make it harder to keep track of your finances, so a combo card can help simplify things.
The best balance transfer credit card for you will depend on yourcredit scoreand overall finances. However, there are several factors you should consider when choosing a balance transfer credit card.
Interest-free period. This is the introductory period during which nointerest is charged. Because you’re not making interest payments, you will have more money to pay off your debt, meaning you can clear it more quickly. The longer the interest-free period, the less you’ll have to pay each month to clear your debt before the 0% deal ends.
Balance transfer fees:Some credit cards will charge a fee to transfer a balance. This is either a flat fee or a small percentage of the amount you want to transfer. This is usually added to the balance on your new card. The balance transfer fee typically ranges between 1% and 5%. Some providers will also charge a set fee if you have a small balance to transfer.
Your credit card provider.It's important to note that you can't usually transfer a balance between cards from the same provider or banking group. For example, if you have a NatWest credit card, you can't move your balance to a NatWest or RBS balance transfer card.
Get it in the calendar- Knowing exactly when your introductory period ends is vital. The last thing you want is to get hit with expensive interest charges because you forgot to write something down.
Longer isn't always better - Make sure you look at fees as well as the length of the interest-free period. If you can clear the debt in 12 months, having 28 months at 0% is less important than the fee.
Make the transfer fast - Cards generally only allow you to take advantage of 0% rates on money that's transferred in the first few weeks after the account is opened. Don't miss this window.
Have a plan to clear it - Ideally, at the end of the introductory period your remaining balance will be £0. Work out how to get there, and if it doesn't look like it will happen, make plans early to move to a new 0% card.
Never miss a payment - Make absolutely sure you're makingat least the minimum repaymentevery month. That's because missing a payment not only comes with charges (typically £12), but could also see your 0% deal entirely scrapped.
Check twice, apply once - Once you've found a card you want, it makes sense to check whether you'll be accepted. Checking with our partners at Uswitch for example won't hurt your credit score and can let you see how likely you are to be accepted before you apply.
Our editors have picked out some of the best balance transfer cards we have on offer
If you're looking to transfer a balance from one card to another and need time to pay it off, this credit card from Tesco Bank could be an option. It has a lengthy interest-free period on balance transfers of 29 months, with a 3.49% fee for making the transfer.”
Representative example: The standard interest rate on purchases is 24.94% p.a. (variable), so if you borrow £1,200 the Representative APR will be 24.9% (variable).
We are classed as a credit broker for consumer credit, not a lender.
If you’re having trouble keeping up with your debt payments, don’t be afraid to ask for help. There are several independent services that you can contact for free advice.
As well as helping you to manage your debts, these services can also ensure you are receiving all the benefits you are entitled to, including tax credits. This could help top up your income and go towards paying off your debts.
StepChange is a charity providing advice and help on budget and debt management. They have a helpline that provides free and independent advice.
You can find your local Citizens Advice in the phone book or through their website. Citizens Advice can advise you on legal and financial issues.
National Debtline offers confidential, free advice to people facing debt problems in England, Wales and Scotland.
You usually need to be a “new customer” to get introductory offers on a credit card. If you have had the same credit card for a while, you might be able to move to a new credit card from the same provider and get the new customer benefits. It all depends on each credit card provider’s rules. However, when transferring a balance, you can only switch from one credit card provider to another and not between two cards with the same provider (this includes the same banking group).
If you take out a balance transfer or money transfer credit card, you will usually be charged a transfer fee to transfer funds. This is usually 1-3% of the total amount you move over for a balance transfer and about 3-5% for a money transfer.
Credit card introductory offers include bonus reward points, extra cashback, 0% on balance transfers or 0% on purchases.
Introductory offers are used to attract new customers, but once they expire, they revert to the standard offer or rate. When this happens, you should check if you’re still getting the best deal or whether you need to switch to a different credit card.
Your credit card balance is the amount of money you owe your credit card provider. In other words, it's the amount you borrowed using your credit card to buy goods and services. It's also sometimes referred to as your credit card debt.
Every credit card has a minimum monthly repayment amount set out in its rules, which you can find in the summary box.
The minimum payment is calculated by working out what interest you've built up over the past month and then adding a small percentage of your total balance. If you have a small overall balance, there might be a fixed sum instead - for example, £5.
As minimum monthly repayments are set at such low levels, it’s best to pay off more than this each month if you can. You’ll clear your debt faster and pay less interest too.
Your credit limit is the amount you can borrow on your credit card at any one time. If you exceed this amount, you can be charged a fee - typically £12 - and it can leave a mark on your credit report.
You won’t usually find out your credit limit until the end of an application process - although you can ask your provider to increase – or decrease – your credit limit at any time.
Credit limits are set based on your credit history and your earnings.
Once you've reached your credit limit, you need to make a payment to bring down your balance before you can use the card again. Find out more in ourguide to credit limits.
Your credit score is calculated based on your credit history. Eachcredit reference agencyhas its own method of calculating this.
Your credit score will go up for things like making payments on time and down for things like being late or defaulting on a loan. Typically, the higher your score, the more likely you are to be offered a lower rate of interest or higher credit limit.
There is no absolute pass or fail mark attached to a credit score, with each lender making its own decision on what it considers acceptable.
It might only be a few days before you get your new credit card, but it couldtake up to two weeks. It will then take up to another week to make the balance transfer.
Yes. Money transfer credit cardslet you move money from your card to your bank account, with some cards offering 0% interest for several months. You can then use these funds to pay off an overdraft or loan or pay for a purchase, for example.Here is how to make a money transfer.
The best way is to work out how much you need to pay each month to have cleared your balance by the end of the 0% period. Then set up a Direct Debitfor this amount so you never miss a payment or pay interest.
Once you've transferred the balance from an old card, you have two options: you can either close the card or keep it. Closing the card can impact your credit rating as it will affect your credit utilisation, which is the amount of debt you have compared to the amount of credit available to you.
Your provider will confirm your credit limit after they approve your application.Here is how credit limits workand how much it costs if you exceed them.
Being pre-approved not only means that you'll be accepted for the credit card but also guarantees the interest-free period and APR you've been offered based on your details. The only thing that is not guaranteed is the credit limit.
Yes,your credit record matters aslenders use it to decide whether to offer you a balance transfer credit cardas well as what APR and credit limit they are prepared to give you.
Your provider will let you transfer a percentage of your credit limit (usually 90-95%), e.g. 90% of a £2,000 credit limit would mean you could use £1,800 towards balance transfers.
You should apply for a balance transfer at least three weeks before you need the balance on your old card to be paid off.
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Rachel has spent the majority of her career writing about personal finance for leading price comparison sites and the national press, including for the Mail on Sunday, The Observer, The Spectator, the Evening Standard, Forbes UK and The Sun.