What is a balance transfer credit card?
A 0% balance transfer card can be an effective way to cut the cost of existing debt – you can transfer your existing credit card balance and take advantage of a 0% interest rate for a set period of time.
If you’re currently paying interest, you could save money.
How much could I save?
Use our helpful Savings Calculator at the top of this page to find out how much a balance transfer could save you.
You can also move debts from multiple cards onto a single balance transfer card. With some cards, this can include overdraft debt, too – potentially saving you hundreds, if not thousands of pounds.
What will it cost?
There is a fee to pay, typically 1–3%, when you move your debt onto a balance transfer card. In most cases, this is dwarfed by the savings you could make.
Our personalised comparison tool will calculate the amount you could save, taking into account the balance transfer fee, making it easy to see which card is your most cost-effective option.
Which balance transfer card is right for me?
Consider the following when deciding on a balance transfer card:
The length of time it will take you to clear the debt against the size of the balance transfer fee. The shorter the 0% deal, the lower the fee tends to be.
Your credit history. Many balance transfer cards require you to have a good credit score. Use our free eligibility checker to find out your chances of acceptance, without harming your credit rating.
How do I transfer a balance?
Making a balance transfer is incredibly easy. Simply give the balance transfer card lender the details of the debts you want to transfer. They will pay off those debts and create a new balance on your 0% card.
You usually need to do this within 60–90 days of taking out the new card. Be sure to close your old cards, as having multiple accounts open can affect your credit rating.
The golden rules of balance transfer
Here’s how to make sure you manage your balance transfer card wisely:
Never miss a payment: A balance transfer card can give you a lot more control over the amount you repay each month. If you miss a payment, or are late making a payment, you may incur a financial penalty. Avoid this by setting up a direct debit to repay at least the minimum every month.
Never outstay your welcome: The 0% interest deal is only for a limited time. When it runs out any remaining balance will start earning interest at an often much higher rate. Clear your debt before the end of the deal or switch the debt to a new balance transfer card.
Never spend on a balance transfer card: Avoid spending or withdrawing cash on your balance transfer card. The 0% deal is only offered on the balance moved from another credit source. Anything additional to this will be charged interest and the rate on balance transfer cards tends to be quite high.
If you do need a card that you can transfer a balance to and spend on, consider a combined balance transfer and 0% purchase card which offer interest free deals on both – find a combined card.