What happens to my old card after a balance transfer?

You’ve taken out a new balance transfer credit card to move existing debt from an older card – perhaps to take advantage of a 0% introductory interest rate or to simplify your repayments.

The transfer has gone through, your old card now shows a cleared or reduced balance, and you’re left with a decision: Should you keep the old account open, or close it?

The answer depends on your financial goals, credit history, and how disciplined you are with spending.

What happens to my old card after the balance transfer?

In most cases, nothing immediately changes with your old credit card once a balance transfer has been completed. The account remains open and active, but the transferred amount will now show as paid off or reduced.

If you’ve transferred the entire balance, your old card will have a zero balance, though any pending interest, fees, or residual charges may still appear on the next statement.

Your credit limit also remains available, meaning you could still use the card unless you choose to cancel it.

It’s important to remember that the balance transfer doesn’t automatically close the old account – only you can request that.

What are my options with my old credit card?

Once your balance transfer is complete, you have three main options. Each has potential benefits and drawbacks, depending on how you manage your finances.

Cancel the old credit card

Pros

Closing the old account can simplify your finances. It reduces temptation to spend on credit again and helps you stay focused on repaying the new balance transfer card.

Cons

Cancelling a credit card can slightly reduce your overall credit limit, which may increase your credit utilisation ratio (the percentage of available credit you’re using). This can temporarily lower your credit score.

Keep it but don’t use it

Pros

Keeping the card open (but inactive) can help your credit score by maintaining a longer credit history and higher available credit limit. Both can make you appear more stable to lenders.

Cons

An unused card might still incur annual or inactivity fees, and there’s always the risk of falling back into debt if you start spending on it again.

Continue to spend on it

Pros

If your old card offers rewards, cashback, or travel benefits, it can still be useful for everyday spending – as long as you pay off the balance in full each month.

Cons

This approach requires strong discipline. Using the card for new purchases while repaying your balance transfer debt elsewhere could lead to managing multiple balances again, undermining the reason you consolidated in the first place.

Advantages and disadvantages of keeping your old credit card

Here are some of the main considerations before deciding whether to keep your old card open.

Pros

• Helps maintain a longer credit history

• Keeps your overall credit limit higher, improving credit utilisation

• Can serve as a backup in emergencies

• Useful if it still offers rewards, cashback, or perks

• Shows future lenders that you can manage multiple accounts responsibly

Cons

• Temptation to overspend and fall back into debt

• May have annual or inactivity fees

• Could complicate budgeting and tracking expenses

• Slight risk of fraud on an unused account

• Cancelling it later might still cause a small credit score dip

What should I do if there’s still some balance left on my old card?

Sometimes, after a balance transfer, a small amount of debt may remain on the old card. This can happen for a few reasons – such as residual interest (interest that accrued between your last statement and the date the transfer cleared), pending transactions, or transfer limits set by the new provider.

It’s best to pay off this remaining balance as soon as possible, to avoid interest charges and to ensure you’re not juggling two debts at once.

You can usually clear this by making a one-off payment directly to your old card. Always check your next statement to confirm that the balance is fully cleared before cancelling the account.

Why should I have more than one credit card?

While simplifying your finances is often wise, there can be advantages to holding more than one credit card – as long as you manage them responsibly.

Different functions

One card might be best for clearing debt (such as a 0% balance transfer card), while another could offer cashback or rewards for everyday spending.

Emergency backup

Having a second card can provide a safety net if your main card is lost, stolen, or frozen.

Travel benefits

Some cards waive foreign transaction fees or offer travel insurance, making them ideal for trips abroad.

Credit building

Responsible use of multiple cards - paying in full and on time - can demonstrate to lenders that you manage credit well.

However, if multiple cards make it harder to keep track of payments or tempt you to spend beyond your means, focusing on a single, well-managed card is usually best.

Common mistakes to avoid after a balance transfer

After completing a balance transfer, a few simple missteps can reduce the benefits you were aiming for. Here’s what to watch out for:

1. Closing the old card too soon

If you cancel your old card immediately, you might accidentally close it before residual interest or pending payments clear. This could lead to unexpected charges or even a missed payment mark on your credit file.

Tip: Wait until you’ve received at least one “zero balance” statement before closing the account.

2. Using your new balance transfer card for purchases

Many balance transfer cards charge standard purchase interest rates on new spending – even if the transfer itself is at 0%. Mixing purchases and transferred debt can make it difficult to pay off the right balance and might lead to higher interest costs.

Tip: Keep your new card for repayments only until the transfer debt is cleared, or look for a combined balance transfer and purchase card if you want to use the new card to continue spending

3. Ignoring fees and deadlines

Balance transfer cards often come with a transfer fee and a promotional period that eventually expires. Missing a payment or failing to clear the balance before the 0% period ends means interest will start accruing again, often at a higher rate.

Tip: Set up direct debits and calendar reminders to ensure payments are made on time and promotions don’t lapse unnoticed.

4. Forgetting to monitor your old account

Even if you no longer use your old credit card, don’t ignore it completely. An inactive card can still attract fees, or worse, be used fraudulently without your knowledge.

Tip: Check your old card account online every few months to ensure it remains dormant and free of charges.

Other useful guides

If you want to learn more about credit cards, we have a host of guides to help. These include:

• How to transfer a credit card balance

• What is a balance transfer?

• Credit card eligibility checker

• What are minimum payments on credit cards?

• How to cancel a credit card

Compare balance transfer credit cards with MoneySuperMarket

MoneySuperMarket makes it quick and easy to compare balance transfer credit cards from leading providers. You can view 0% interest deals and promotional periods at a glance, check any balance transfer fees before applying, and compare credit limits, rewards, and perks.

We’ll also run a soft search to show your eligibility, so you can find the right card without affecting your credit score.

Use our comparison tool to discover the deal that best suits your financial situation and helps you manage your debt more effectively.

Moneysupermarket is a credit broker – this means we’ll show you products offered by lenders. You must be 18 or over and a UK resident. 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.