You use a balance transfer when moving your existing credit card balance to a new credit card provider. You might pay an initial fee when transferring balances to a new card. Usually the fee is between 0% and 5% of the total amount being transferred, depending on the provider.
A balance transfer credit card lets you move balances from one or more credit cards to another card, often at a lower interest rate, helping to make your debt easier to manage and payments simpler.
Some balance transfer cards offer initial an 0% interest period. Once this ends, standard interest rates will apply to your outstanding balance.
If you're looking to start paying off debt, a balance transfer card may be right for you. Benefits include:
In short, it depends on who you choose as each provider will have different processes and checks prior to approving your application. A few other things also affect how long a balance transfer takes:
A purchase and balance transfer credit card is a flexible card you can use for both balance transfers and new purchases.
Many cards offer a low or 0% interest introductory offer for both, so you can save on interest whether you're making a new purchase or transferring a balance.
A short term balance transfer credit card gives you less time to pay off your balance as the low or 0% introductory balance transfer period will be shorter.
Great option if you have a smaller balance and want to clear your debt quickly.
A credit card can be an expensive way of borrowing, so it's important to pay your full balance each month if you can. If you don't, you'll be charged interest unless you've taken advantage of an introductory offer from the provider. We can provide help If you are struggling financially.
You should always make sure you can pay at least the minimum payment (usually a percentage of your balance). Missing a payment will likely cause extra charges and negatively impact your credit score.
If a credit card is not right for you then learn more about our different borrowing options.
We've created a 5-step guide on how to get a credit card in the UK.
If you're not sure if a credit card is right for you, you might find our credit card guide handy. Find out how they work, the benefits and common questions about credit cards.
Not sure about the best way to borrow money? Learn more about the different borrowing types available and which might suit you the best.
