How to transfer a credit card balance
Transferring a credit card balance can be a great way to cut interest repayments and clear your credit card debt faster. Our guide explains more
Key takeaways:
Request your balance transfer during the application process, or as soon as your application is approved.
Balance transfers typically take one working day, but can take longer if you've requested it on a weekend, bank holiday, or after 7pm.
Continue making payments on your old card until your transfer is confirmed.
This video information is available as a Text Transcript
How do I transfer my credit card balance?
Once you’ve decided you will benefit from transferring your credit card debt to a balance transfer credit card, these are the steps to follow.
1. Apply for a balance transfer card
Look for low or 0% balance transfer deals and compare how long the introductory period lasts, plus any fees you’ll be charged for the balance transfer.
Today, the longest interest-free introductory period available is 35
^ months, subject to eligibility.
Our eligibility checker can show you your chances of being approved for any type of credit card, including those with balance transfer features. And better still, searching won’t affect your credit score in any way.
Take note of the terms and conditions. For example, you might not be able to apply for a balance transfer card from your existing credit card provider, or a maximum balance transfer limit could apply. When you’re happy with your choice, make the application.
2. Request the balance transfer
Request the transfer during the application if you can, or as soon as your balance transfer credit card application is approved.
You can usually do a balance transfer over the phone or online. You’ll need to provide account numbers of your old cards and tell your new provider how much of your balance you want to transfer (there may sometimes be a credit limit on how much you can transfer, so again, check the T&Cs).
3. Clear your debt
With your transferred balance now on the new credit card, you can start making your regular monthly payment to clear the debt.
Ideally you’ll aim to clear the remaining balance before the end of the low or interest-free period.
Sometimes your credit limit on a new balance transfer card won’t be enough to cater for all your outstanding balance from other cards.
If this is the case, you may wish to prioritise clearing the remaining balance on the old card first – where the interest rates are highest.
Keep up with the minimum repayments on all cards to avoid late fees and the possibility of having your 0% deal withdrawn.
Keep a close eye on when the balance transfer card interest rate is due to rise to the standard card interest rate. At this point, you'll start to pay interest at a higher rate if you've not cleared the outstanding balance.
How long does a balance transfer take to complete?
After your new card issuer processes your balance transfer request, the balance transfer typically takes one working day to complete. If you've requested the transfer on a weekend, bank holiday, or after 7pm, it may take longer to process.
In some cases, it can take several days, or even weeks, for a balance transfer to be processed if the new or old card issuer has to make extra identification checks.
Card issuer | Balance transfer time |
|---|---|
Barclaycard | Next working day |
NatWest | Next working day |
Lloyds | Next working day |
Halifax | Next working day |
American Express | Within 10 working days |
Virgin | 2-3 working days |
HSBC | Next working day |
Capital One | 3-14 working days |
While the information above is taken from each providers' help and support information, be sure to check their terms and conditions.
We'd recommend making payments on your old card until you get confirmation the transfer has gone through, so you don’t run the risk of being hit with late-payment fees.
Why would I make a credit card balance transfer?
You might want to move your credit card debt with a balance transfer to take advantage of:
Better interest rates: You may be struggling to pay off your existing balance because you’re being charged high rates of interest. Switching to a new balance transfer credit card that offers a low or 0% interest rate on transferred balances could help lighten that load and help you save money in monthly payments and overall interest.
On average, MoneySuperMarket customers save up £355
^ by moving their balances to a specialist balance transfer card.
Switching incentives: Some credit card providers offer rewards when you take out a balance transfer card. Rewards available with a balance transfer vary from cashback on your spending to discounts on streaming services.
Want to see how much you could save? Plug your details into our credit card calculator and find out if you could save by transferring an existing balance.
What do I need to consider before I transfer a balance?
There are a few things to consider before you sign up for a new balance transfer credit card and carry out the balance transfer. Some questions you should ask yourself are:
How long will the 0% period last?
If you’re taking advantage of a low-interest or interest-free period on your new credit card to clear the debt, you’ll need to know how long the introductory period lasts before you're paying interest at a higher rate.
What balance transfer fees will I be charged?
Balance transfers typically come with a one-off balance transfer fee, which is a percentage of the balance you are moving.
This fee is typically between 3% to 5%. Often the amount you’ll save in interest repayments will more than justify the balance transfer fee.
Can you move your full balance?
Most cards come with balance transfer fees, and many providers only let you transfer a balance up to 95% of your new card limit (including the fee).
For example, if your current credit card balance is £3,000 and your new card has a £3,000 limit and a 3% transfer fee, you won't be able to transfer your full £3,000 balance in one go. This is because:
95% of your new card limit is £2,850.
This means you can only transfer £2,760 of your original balance (£2,760 + £90 transfer fee)
This leaves £240 on your old card.
However, you should still transfer what you can as you'll be paying no, or a lower amount of interest on the bulk of your overall credit card debt. In this case, you should prioritise clearing the card balance with the higher interest rate, which should be your old card.
How long do you have to transfer your existing balance?
Many cards stipulate that you must transfer your credit balance to your new card within a certain time frame, such as the first three months or 90 days.
Start the transfer as soon as you can – that way you can stop the high interest payments on your old credit card as quickly as possible.
Will I use the balance transfer credit card for anything else?
Balance transfer credit cards are designed to help you clear your balance by providing low or 0% interest rates.
But if you use the card for spending it could be expensive, with any new debt charged at a much higher interest rate.
There are credit cards available that have appealing rates for transfer and purchases, but make sure you understand what you’ll be charged and why before signing up.
What happens to my old credit card?
After you complete your balance transfer, your old credit card will have no balance, or whatever you couldn't transfer due to your new card's credit limit.
Your old card won't be automatically closed, so consider closing the account yourself.
If there's any remaining balance on your old card, prioritise paying this off quickly to avoid accruing interest.
Other useful guides
We have a range of helpful credit card guides which could help you with your new card decision:
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