What is a balance transfer credit card?
Balance transfer cards can help you take control of your credit card debt by moving it to a lower interest rate. Here's how they work and what to look out for.
Key takeaways
A balance transfer credit card allows you to move an outstanding balance from one or more existing credit cards to a new card
Compare credit cards to find the best deal and look for a 0% balance transfer period that suits your repayment timeline
Transferring a balance can temporarily affect your credit score due to changes in credit utilisation
Be aware of one-time transfer fees (usually a percentage of the balance) and focus on paying off the debt promptly
What is a balance transfer credit card?
A balance transfer credit card is a credit card that lets you move existing debt from one or more cards onto it, usually with a temporary 0% interest period. These cards typically offer a promotional period of 0% interest on the transferred balance, which can last anywhere from 6 months to three years.
This interest-free window gives you time to pay down your debt without additional charges building up. It can also help you consolidate multiple balances into one, making your repayments simpler to manage.
At a glance
Best for: People with existing credit card debt who want to cut interest and have a realistic repayment plan.
Top 0% periods: Typically around 36 months.
Main cost: a one-off transfer fee on many cards.
Main risk: if you miss payments or do not clear the balance before the offer ends, the remaining debt can revert to the standard rate.
What do I need to consider before transferring a balance?
Before applying, it’s worth thinking through the following:
Work out your repayment plan
Divide your total debt by how much you can afford to repay monthly. If you owe £2,000 and can pay £100 a month, aim for a card offering 20 months at 0% or longer.
Compare deals
Look for cards with long enough 0% periods and manageable transfer fees. With MoneySuperMarket, you can check your eligibility without affecting your credit score.
Check for balance transfer fees
Many cards charge 3-5% of the transferred amount. Some offer no-fee transfers but with shorter 0% periods.
How do balance transfer credit cards work?
Balance transfers work by shifting debt from one credit card to another. Once approved, your new credit card provider will pay off the balance on your old card(s), and your debt is now on the new card.
You’ll repay this new card instead, ideally during the 0% interest window.
Let’s say you have £2,000 on a credit card with 18.9% interest. You transfer it to a 0% card for 24 months with a 3% transfer fee (£60).
If you repay £85 a month, you’ll clear the debt in two years, saving over £400 in interest compared to sticking with your old card.
Just remember that after the 0% period ends, the interest rate jumps. If you haven’t cleared the debt by then, you could be back to paying higher interest.
How long does a balance transfer take?
Balance transfers typically take between 5 and 7 working days, though some providers may take longer. The exact timing depends on how quickly both your old and new lender process the transfer.
What is a balance transfer fee?
A balance transfer fee is a one-off charge applied when you move an existing credit card balance to a new card, usually calculated as a small percentage of the amount transferred. The percentage is typically around 2%-3% of the amount transferred.
Some providers have cards that come without a fee, but these offers often come with shorter interest-free periods or stricter eligibility criteria. It’s also common for lenders to restrict how much you can move, meaning you may not be able to transfer your full outstanding balance in one go.
Our credit card calculator can help you work out how long it will take to pay off an existing balance based on your current monthly repayments and APR.
What are the pros and cons of a balance transfer card?
Pros | Cons |
|---|---|
0% interest means more of your monthly payment goes toward clearing the balance. | Using the card for new purchases may cancel out your savings, unless it's a combined balance transfer and purchase card. |
Combine debts from different cards into one. | If you don’t pay off the balance in time, interest kicks in, often at a higher rate than your old card. |
Responsible use can help rebuild a poor credit score. | The best 0% offers are reserved for those with strong credit scores. |
Data from Experian shows that over 10 million people could save over £1,300 by switching to a balance transfer card.
Will transferring a credit card balance affect my credit score?
Yes, but usually only in the short term - opening a new card or using a high portion of your available credit may cause a temporary dip.
But if the card helps you stay on top of payments and reduce debt, your credit score could improve in the long run.
What is a 0% interest balance transfer?
A 0% interest balance transfer means you won’t pay any interest on your transferred balance for a set period, usually up to three years.
This can give you breathing space to pay your debts off faster - but just keep the following in mind:
You’ll likely need to pay a one-off balance transfer fee of around 3-5%
You’ll need to keep up your minimum repayments every month to keep the 0% deal
If you use the card for spending you’ll face higher interest unless it’s a combined 0% balance transfer and purchase card
You’ll also face high interest if you don’t pay off the debt in time
Other useful guides
Want to find out more about credit cards? Have a look at some of our other guides here
Credit cards explained: understanding the basics
How to increase your chances of being accepted for a credit card
Compare balance transfer cards with MoneySuperMarket
A balance transfer card isn't right for everyone. But they're a good bet if you're keen to clear your outstanding credit card debts while minimising what you pay in interest.
If you do decide a balance transfer card is what you're looking for, the good news is that comparing balance transfer credit cards with us is quick and simple.
Just give us a few details about you and your finances and we’ll search across the market to find the best deals to suit your needs.
We’ll also show you your chances of being accepted for different cards so you can make a confident decision before applying. Searching in this way doesn’t affect your credit score in any way.
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.
Frequently asked questions
Can I use my old credit cards after a balance transfer?
Once you’ve transferred your card debt, you may wonder if it’s better to stop using your original card for any further spending – or even close the card account down.
But while it may be sensible to remove the temptation to spend again on the card, closing it straight away could actually harm your credit score. This is because it could increase your debt-to-credit ratio.
If you want to carry on using your credit card some lenders allow a ‘same day balance transfer’ and will allow you to use your credit card on the same day you transfer the balance.
Often, providers will allow this if they get your transfer request before 5pm. But make sure you check this, as it can vary depending on when your previous provider processes the payment.
If you’ll want to continue spending, you could look for a combined balance transfer and purchase credit card, These cards typically offer an interest-free or low interest rate for balance transfers AND a zero or low interest rate on new spending for a set time.
Should I cancel my credit card after I have transferred its balance?
You may wish to cancel your credit card after you have transferred the balance, particularly as it removes the temptation to use it for more spending.
Alternatively, you might prefer to keep the credit card for emergency spending and because it helps lower your credit utilisation rate (the proportion of credit you are using at any given time), which can reflect positively on your credit score.
When is the best time to do a balance transfer?
When you should do a balance transfer will depend on your situation. If you have a large credit card balance and you’re facing high interest rates and struggling to pay off your debt, it usually makes sense to transfer as soon as possible.
If you’ve bought a high-value item, like a new car or kitchen, you may want to switch your balance to a 0% interest rate to take advantage of an interest-free card deal.
Just remember to factor in any potential transfer fees that come with transferring your balance.
Can I get a balance transfer card with poor credit?
You might be able to get a balance transfer card with poor credit, but you may not be offered a low or 0% introductory interest rate and your card limit is also likely to be low. It may be worth taking steps to try to improve your credit score before applying for a new credit card.
What is the maximum amount I can transfer?
This will depend on the card limit given to you by the card issuer when they approve your application. If the card limit is lower than the outstanding balances on your existing credit cards, you may not be able to switch all the debt to the new balance transfer card. If this is the case, prioritise moving the most expensive debt first.
Can I transfer a balance from more than one credit card?
Yes, you can transfer the balance from one or more credit cards to your new balance transfer card. However, you will be limited by the credit limit on your balance transfer card.
Author
Tim Heming
Personal Finance Expert
Tim Heming is a journalist and editor who has written about personal finance for national newspapers and consumer websites for 15 years. Tim enjoys providing no-nonsense information to help consumers...
Reviewer
Mehdi Punjwani
Insurance specialist
Mehdi is a financial writer and editor with over six years of experience in personal finance. He has written for organisations and publications including Equifax, The AA, and USAToday, covering a...
