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Money transfer credit cards

Find a great deal on money transfer credit cards

  • Move money to your current account
  • Low and 0% interest options
  • A small step towards Money Calm

What are money transfer credit cards for?

Knowing where to get cash to pay off an overdraft or debt off can be a stress, but there are solutions available.

A money transfer credit card lets you move cash straight into your current account and, providing you can find an interest-free period, it can be one of the cheapest ways to borrow a modest sum of money over the course of a year or so.

But the search for the right deal can be frustrating, with quite a few money transfer cards on the market it can be hard to know which deals are right for you. That’s where MSM can help: our eligibility checker searches the market and shows your chances of being accepted – so you know where you stand before you apply.

Build better credit with this Aqua credit card

What is a money transfer credit card?

Money transfer credit cards are similar to balance transfer cards, but instead of transferring an outstanding debt between credit cards, you borrow money on your credit card and transfer it to your bank account. People usually do this to pay off an overdraft or another debt. The process is simple:

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Ask your lender to transfer the money

There’s usually a window of a few months for you to complete the transaction, so check the small print to see how long you’ve got

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Pay a small fee when the transfer goes through

Your lender will take a small percentage of the transfer as a fee – usually between about 1% and 4% of the total sum

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Repay the agreed minimum each month

If you don’t make the minimum payment each month you may lose your low interest rate or be charged a penalty fee

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Pay the whole amount off in time

The low-interest period will be fixed for up to around two years. After that, your APR will shoot up and you’ll owe much more 

Money transfer credit cards: What they’re good for and what they’re not

Money transfer cards are really useful in specific circumstances – particularly when you want to borrow a few thousand pounds for between one and two years at very low interest. However, they’re much less useful for other things credit cards can do, including making purchases. This is what you need to know:

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    Cheap borrowing

    Fees are often between 1.5% and 4% – much less than the average APR of a high street loan, so it’s cheap credit provided you’re accepted

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    Paying off other loans

    Because most loans have a higher APR, money transfer card rates make them a great way to pay off other loans cheaply

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    Paying off your overdraft

    Overdrafts often charge huge amounts of interest, so money transfer cards are a smart way to save yourself a packet

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    Making Purchases

    Money transfer cards often have high APRs when you’re using them to spend money. Consider a purchase card instead

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    Withdrawing cash

    It’s not a good idea to use a credit card at an ATM – you pay interest on what you take out and it may affect your credit score

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    Larger sums

    Money transfer cards tend to have credit limits of just a few thousand pounds. So they’re no use if you need to borrow a larger amount

How to compare credit cards with MoneySuperMarket

If you feel that a money transfer credit card could be right for you, the next step is to use the MoneySuperMarket Eligibility Checker to see what cards are available – and which are most likely to approve you.

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Tell us about yourself

We’ll ask you a handful of simple questions about you and your financial circumstances, and what you need from a credit card

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We browse the market

We’ll sift through dozens of credit card offers from across the market, and then show you the cards we think will suit you best

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Pick the card you want

You’ll be shown a range of credit cards, which you’ll then be able to sort according to APR, features and your chances of being approved

Are there other options for borrowing money?

Money transfer credit cards are a very useful way to borrow money cheaply in the short term, but they’re only at their best under certain conditions. Other borrowing options are available, including:

  • Personal loans: A traditional loan will let you borrow a more substantial sum over a longer period. Chances are you’ll be offered a higher APR, but if you need more cash than you can borrow on a credit card, loans are one solution

  • Balance transfer credit cards: If you have outstanding debts on one or more credit cards, a balance transfer card will allow you to transfer them into one place. This lets you consolidate multiple repayments into one with a lower APR

  • Debt consolidation loans: If you’re looking to cover significant spiralling debts, debt consolidation loans might help. These pay off your outstanding debts and replace them with a single monthly repayment at a manageable APR

Know where you stand with a pre-approved credit card

Applying for a credit card can sometimes feel daunting, because it’s not always clear what deal you’ll get, or if you’ll be accepted. But when you’re pre-approved for a credit card you can relax, because you know the deal you see is the deal you’ll get. You’ll know where you stand, with the facts at your fingertips to help you make the right choice for you.

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Apply with confidence

When you’re pre-approved, the interest rate, interest-free period and fee (if there is one) are all confirmed – the only thing not guaranteed is your credit limit.

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Tailored to you

You’ll see your unique, personalised chance of being approved for all credit cards, so you can easily compare all your options at a glance.

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You’re in safe hands

Knowing all this upfront puts you in the driving seat. You’re less likely to be turned down when you apply, so your credit score is protected.

Once you’ve been approved for a money transfer credit card, you ask your lender to transfer money from your new card to an existing bank account you own. The transfer should happen automatically, and you’ll be allowed to transfer any sum of money up to the credit limit you’ve agreed with the lender.

APR stands for ‘annual percentage rate’, and refers to the proportion of interest you agree to pay back on the loan every year. It’s important to be aware that the headline APR on a credit card may differ to the one you are ultimately offered Before you apply for a credit card, the APRs you are shown are ‘representative’ – equivalent to the lowest interest rate the lender will offer 51% of the people it accepts for its card. The actual APR you’re offered could differ according to your credit score.

That’s exactly what money transfer cards are for – they’re products designed to transfer money at a decent rate. You can do it with other types of credit card, but it’s not a wise idea: it would end up fairly expensive to move money to a bank account using most other types of credit card.

As with all credit cards, you can help or harm your credit score according to how disciplined you are with your debts. If you take out a money transfer credit card and meet the minimum repayments on time and in full each month, and pay the full balance off before the offer period ends, your credit rating will almost certainly improve.

Likewise, if you miss or are late with repayments, and don’t pay it all off in time, your credit score will probably take a hit.

Balance transfer and money transfer cards work in a similar way – helping you move expensive debts onto a cheaper and more manageable rate of interest. The only variance is that they’re used for different types of debts. A balance transfer card lets you move debt onto it from another credit card or cards, while a money transfer card lets you move debt from your bank account instead.

A credit card lets you borrow money from a bank or building society which you can use to pay for goods or services upfront. 

You then pay the money you’ve spent on the credit card – known as the balance – on a monthly basis. If you pay back your balance in full each month, you won’t pay any interest on what you borrowed. If you can’t afford to pay the whole balance back, you make monthly repayments, but you will often be charged interest on the outstanding balance. 

There are different types of credit cards, and each is designed for different spending needs.

  • Balance transfer credit card: transfer an existing balance to lower interest rates on your repayments.
  • 0% purchase credit card: low and interest free spending to spread the cost of a large purchase over a longer period.
  • All-rounder credit card: transfer an existing balance and spend interest free for lower interest rates and interest free spending for a specified period.
  • Credit cards for bad credit: improve your credit rating by meeting monthly credit card repayments and building your credit score.
  • Rewards and airmiles credit cards: earn rewards on your spending such as cashback, airmiles, and vouchers.
  • Travel credit card: a credit card to avoid overseas charges when you use your card abroad.

There are many different types of credit cards. Some of the most popular include

0% purchase cards – which let you buy large purchases up front and you pay back what you’ve borrowed without incurring interest over a set period.

Balance transfer cards – so you can transfer the outstanding balance from one card to a new card at either a lower or no interest rate for a set period. There is often an upfront fee pay for the transfer.

Reward cards offer cashback, loyalty points or Air Miles if you pay off your balance each month. The interest rates are higher but if you can spend responsibly you can earn decent savings.

Credit cards are useful to pay for goods and services, and you can use them in a similar way to an interest-free loan as you can in essence borrow money for free, providing you pay it back in full each month. Using a credit card for purchases will mean you’re covered under Section 75 of the Consumer Credit Act which means you can get your money back if a product you buy is faulty or doesn’t arrive.

However, it is easy to rack up a large debt with a credit card, especially if you make only the minimum repayment each month as interest will be charged on what’s left. If you miss a payment, make a late payment, or go over your credit limit, you will often be charged a penalty fee.

Choosing the right credit card depends on many factors including what you are using the card for, how likely you are to pay off your balance in full, and your credit rating.

Our Eligibility Checker will ask questions to determine which type of card suits your needs, and because it uses a ‘soft search’, it won’t affect your credit report. There are hundreds of different credit card deals, but you can compare our leading offers quickly and easily with MoneySuperMarket.

MoneySuperMarket is a credit broker – this means we’ll show you products offered by lenders. We never take a fee from customers for this service. Instead we are usually paid a fee by the lenders, but the size of that payment doesn’t affect how we show products to customers.

APR stands for Annual Percentage Rate and it represents how much it’ll cost to borrow money on a particular credit card. It’s calculated by taking into account:

  • Your interest rate
  • Additional fees and charges.

However, you might see the term ‘representative APR’ on adverts for credit cards – this means that the interest rate quoted only has to be offered to at least 51% of successful applicants, so it may not be the actual rate you get when you apply.

Credit card providers can change interest rates at any time, so it’s always a good idea to stay on top of your credit balance. If you have a 0% offer on your credit card, this will only be for a set number of months so you should make sure you clear your balance before it ends, or transfer your remaining balance to another 0% card.

You can apply for credit cards online, either using MoneySuperMarket or going directly to the provider, or by calling them up or through the post. You can also stop by your bank or building society branch and apply in person.

First consider what you want to use the credit card for – cards come with different features that are useful for different purposes.

If you have a large purchase coming up, you might want to spread the cost with a 0% purchase card, if you fly a lot you might want an airmiles card, and if you want to transfer a balance to avoid interest payments, a balance transfer card could be ideal.

By comparing on MoneySuperMarket, you’ll be able to see a list of credit cards, so you can browse at will and choose which one suits you best.

You’ll get a cooling off period of two weeks from when you receive your card, and you’ll have 30 days to pay off your balance. You can cancel by contacting your provider, either by post, phone, online, or in-branch.

However, if you want to cancel your credit card after the cooling off period, your account balance generally must be zero.

Your credit score is a number that represents your creditworthiness to credit lenders, based on an analysis of your credit history (your history of borrowing and paying back credit).

The higher your score, the more likely you are to be accepted for future credit applications. If your score is low, there are ways to improve it. MoneySuperMarket’s Credit Monitor lets you check your credit score for free and gives you tips on how to improve it.

A soft credit search is a way of finding out which credit cards you’re most likely to be accepted for without your credit score being affected. This is usually done via a website such as MoneySuperMarket.

A hard search on your credit report is a mark left by a lender who has assessed your credit rating after you have applied for a credit card. Too many hard searches (often through multiple applications) may make lenders think you are desperate for credit so it’s best to limit your applications for credit in a short space of time.

If you have a bad credit rating or you don’t have a credit history because you’ve never borrowed before, you might not qualify for the very best credit card deals. However, some credit cards are designed specifically for those who need to build up their credit score. Just be aware they often come with low credit limits and high interest rates.

However, if you use this type of card sensibly and always pay off your balance in full, you can improve your credit score so you’ll eventually be eligible for better credit cards.

If you miss a repayment on your credit card balance, you likely have to pay a penalty fee. What’s more, if you have any type of promotional offer with your card, such as an interest-free deal, this may be cancelled, and a missed payment may have a negative effect on your credit score.

If you get rejected for a credit card, this will leave a mark on your credit report and could lead to further rejections in the future. It’s a good idea to use MoneySuperMarket’s Eligibility Checker to see how likely you are to be accepted for a card before applying to get it, and it won’t affect your credit score.

You might be able to get more credit from your provider if you prove yourself to be a responsible borrower by repaying on time and never missing payments. Once you’ve established a good credit history, you might be successful when asking for a higher credit limit.

Unlike many loans and mortgages, you generally won’t be charged for making early repayments on your credit card – which means it’s a good way to get ahead of your balance.

You can’t get joint credit cards in the same way as bank accounts and mortgages, but you can add additional users to your own credit cards. However, you should remember that it’s still the primary cardholder’s responsibility to pay off the balance.

The Consumer Credit Act was established in 1974, and under Section 75 the credit card lender is jointly responsible with the retailer or supplier for any goods or services you purchase with your credit card.

This means if those products are faulty, or if there was any contract breach or misrepresentation on the retailer’s part, you can claim from your credit card company as well as the retailer.

However, you can’t recover money from both sides, so it’s useful for when the retailer has gone bust or they won’t respond to your communication. You should be aware the purchase value must be more than £100 and not more than £30,000 for you to be able to claim.

You can cancel your credit card by contacting your lender, by phone, email, online, post, or in person if they have a local branch.

If you’re applying for a credit card, you might be able to find a better deal if you look through offers from different providers before taking one out. With MoneySuperMarket you’ll be able to search through multiple credit cards and compare them by a range of factors, including their interest rates and any benefits and rewards they come with.

All you need to do is answer a few questions about yourself and your financial situation, and our Eligibility Checker will show your chances of being accepted for different credit cards. This won’t affect your credit score, so you can run a check without any worries.

Once you know which card you want, you can normally apply by phone, online, or in person if the provider has a high street branch. However, when you do apply, the provider will usually run a hard credit check – which will show up on your credit report – to confirm whether they’ll give you the card. If you’re accepted they’ll tell you your credit limit and interest rate, and soon you’ll be ready to start using your credit card.

 

MoneySuperMarket gives you lots of clever ways to save a lot, by doing very little.

  • Take control of your credit score by checking and improving it for free with Credit Monitor
  • Never overpay again with Energy Monitor, our energy monitoring service
  • Over 50 ways to Get Money Calm

So how do we make our money? In a nutshell, when you use us to buy a product, we get a reward from the company you’re buying from.

But you might have other questions. Do we provide access to all the companies operating in a given market? Do we have commercial relationships or ownership ties that might make us feature one company above another?

We commit to providing you with clear and informative answers on all points such as this, so we have gathered the relevant information on this page.