What is a balance transfer card?

If you’re paying interest on a credit card balance, a balance transfer card could be a good option for you. Here’s what you need to know.

Save money here

Start a search

Balance transfer cards are for moving your existing debt from one credit 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 to a higher rate of interest.

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

If you’re paying interest on a credit card balance, moving it to a 0% balance transfer card could be an option to help you save money.

Did you enjoy that? Why not share this article

SAVE MONEY NOW

Other articles you might like

Popular guides