If you have a hefty balance on a credit card you can save money by transferring this to a card with a low balance transfer fee and more attractive interest rate. Compare the best deals at MoneySupermarket.
What are low-fee balance transfer cards?
Alongside checking the rate on the card you’re moving your debt to, it’s worth taking note of the balance transfer fee. Low-fee balance transfer cards are those that allow you to transfer a balance onto a different card for small fee, of, say 1.5% or 2%. However, as with any balance transfer deal, you will not be able to do this if your existing card is from the same provider.
What types of low-fee balance transfer credit cards are there?
There is a range of cards on the market that enable you to do this. You may also benefit from a 0% period on your balance, so check the terms, and what interest rate you face on your debt, alongside any other perks the card may offer.
What are the advantages of using low-fee balance transfer credit cards?
The main benefit of low-fee balance transfer cards is that you pay less to transfer the debt. This is especially handy for those switching larger debts as the fees are charged on a percentage basis. If you were planning on switching £10,000 for example, a 3% balance transfer fee would cost a hefty £300, compared to £200 on a 2% fee, so it’s worth shopping around for a lower fee.
Another advantage of low-fee balance transfer credit cards is that when you transfer your debt to the new card, the interest rates charged may be much lower than the typical APR of around 17%, or even 0% for a period. This means you can plough all the extra money into reducing your capital debt.
After a 0% period, however, APRs will rise to standard levels. When you start to pay interest, the quicker you can pay off the balance the better.
How can I find a low-fee balance transfer credit card?
You will want to make sure you get the right low-fee balance transfer credit card for you as there are several to choose from on the market. You can compare these by using a comparison website such as MoneySupermarket.
By doing this you can compare the interest rates that will be charged on your debt as well as any other perks the cards may offer such as loyalty points, annual travel insurance and even music and make an sound choice.
We’re free, independent and compare all UK credit cards as well as offering exclusive deals you can't get anywhere else.
Your personalised chance of approval
We've taken the details you gave, and used them to show you personalised scores to tell you the chance that your application for each card would be successful.
Why is this important?
Every time you apply for a credit card, a mark is left on your credit score. That means it's better get it right first time. Your scores help you understand which cards you have the strongest chance of getting.
The higher the score, the stronger chance you have of getting the card. If you see a very low score, you're probably better off choosing a different card.
- Consider a different card
- Not eligible
- Your chances are good
- You've been pre approved
If you see a high score, you can be fairly confident. The scores aren't a guarantee, as acceptance of your application is at the sole discretion of the card issuer, but they should help guide your choice.
If you see a pre-approved score it may be subject to you passing additional ID and fraud checks by the provider.
In some cases, we will not be able to display a score for a product because we do not have enough information about the card issuer’s acceptance criteria or we have not been able to match your details at the credit bureau.
We work closely with our partners to improve our eligibility scores for all products that are of interest to you.
We're free and independent, as well as offering exclusive deals you can't get anywhere else.
Moneysupermarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this broking service. Instead we are usually paid a fee by the lenders – though the size of that payment doesn’t affect how we show products to customers.