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What is a balance transfer credit card?

What is a balance transfer credit card - text transcript

published: 27 September 2022
Read time: 5 minutes

woman with laptop showing MoneySuperMarket on her lap

Balance transfer cards are for moving your existing debt from one card to another without paying any interest for a set period of time.

You’ll normally have to pay a fee to transfer your balance. This varies but is usually about 3% of the amount you’re transferring.

You can’t usually transfer a balance from one card to another if they are both issued by the same provider or even part of the same banking group.

The 0% term gives you time to pay off your debt without paying any interest. But when the interest free period comes to an end, the card provider will start to charge you interest, so you’ll want to get a card that gives you enough time to pay off your debt before the 0% period ends.

If you miss your monthly repayment, or your payment is late, your credit card provider could end the interest free offer and bump you up to a higher rate of interest.

So it might be worth considering setting up a direct debit so you never miss a monthly payment.

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