How do balance transfers work?
They work by moving all or part of your balance from one credit card provider to another. Most balance transfer credit cards offer an interest-free period where you won’t be charged interest on your balance until the introductory offer expires.
You’ll need to pay at least the minimum amount each month so you don’t lose your 0% deal, though you could reduce your balance quicker by paying more. Some cards charge a balance transfer fee for moving your debt – this will be a percentage of the amount you transfer.
At the end of the zero percent interest period, the interest rate will usually increase. If you haven’t cleared the card balance by the end of the offer period, you’ll have to start paying interest on it. Alternatively, you could look to transfer to another balance transfer card.
Is the balance transfer credit card right for you?
If you’re paying interest on your credit card payments, a balance transfer could save you money. To make sure that this card is right for you, we’ve put together a list of questions you should answer before you commit to it.
- Is the monthly repayment affordable?
- Can you pay off your balance in full before the 0% offer ends?
- Is the balance transfer card provider different to the one you have now? If you want to stay with the same provider, they usually won’t allow you to transfer debt from one card to another.
- Does the card come with a balance transfer fee? Some cards offer shorter 0% periods but for a lower or even no balance transfer fee.
- If you have more than one credit card or high balances elsewhere, will your new credit limit be high enough to move everything to a new card? You may be able to use an eligibility checker before you apply to see if you’ll be accepted and what credit limit you’ll get.
We offer a range of balance transfer cards. Use one of our calculators to see how much you could save by transferring a balance to us.