Balance transfer credit cards

💳 What Are Balance Transfer Credit Cards?

Balance transfer credit cards are designed to help you move existing credit card debt to a new card with a lower interest rate — often 0% for a set period. This can significantly reduce the cost of repaying your debt, giving you breathing space to get your finances back on track.

In the UK, these cards are commonly used to manage or consolidate debt without accumulating more interest charges. They’re a powerful tool — but only if used wisely.

🔍 How Do Balance Transfers Work?

A balance transfer works by allowing you to transfer outstanding balances from one or more existing credit cards onto a new card that offers a lower interest rate for a promotional period (often 6 to 30 months). You may be charged a one-off transfer fee, usually between 1% and 3% of the amount transferred.

Example: If you transfer £3,000 to a card with a 2% balance transfer fee, you’ll pay £60 upfront, but potentially save hundreds in interest over the next year or more.

🏦 Best Balance Transfer Credit Cards in the UK (2025)

Here are a few standout balance transfer cards currently available in the UK. Always check eligibility and terms before applying:

• Barclaycard Platinum Balance Transfer Card

  • 0% interest for up to 24 months

  • 2.99% transfer fee

  • Apply on Barclaycard

• Sainsbury’s Bank Balance Transfer Credit Card

  • 0% for up to 21 months

  • No transfer fee

  • View at Sainsbury’s Bank

• Virgin Money Balance Transfer Credit Card

  • Up to 28 months interest-free

  • Transfer fee between 1.5% and 3%

  • Virgin Money Website

These are subject to change and your eligibility depends on your credit score and financial history.

❓ Who Should Use a Balance Transfer Card?

Balance transfer cards are ideal if you:

• Have existing credit card debt with high interest

• Can pay off your debt within the 0% promotional period

• Are disciplined enough not to make new purchases with the card

• Have a decent credit score (good or excellent rating improves your chances)

They’re not suitable if you’re likely to miss repayments or if you intend to use the card for spending — as purchases often aren’t covered by the 0% deal.

📉 How Much Can You Actually Save?

Let’s say you have £4,000 debt on a credit card charging 22.9% APR. By transferring it to a 0% card for 24 months with a 2% fee (£80), you can pay off the full amount interest-free, saving over £1,000 in interest.

Use online tools like the MoneyHelper balance transfer calculator to check your potential savings.

⚠️ Common Mistakes to Avoid

Many people make costly errors when using balance transfer credit cards. Here’s what to watch out for:

• Missing payments – You could lose your 0% deal instantly. Set up a direct debit.

• Spending on the card – Purchases usually don’t benefit from the 0% period.

• Ignoring the end date – Once the promotional period ends, high interest kicks in.

• Transferring too little – Try to transfer the full debt amount, if the credit limit allows.

📝 Tips Before You Apply

1. Check your credit score: Use a free service like Experian or ClearScore to view your credit history.

2. Use an eligibility checker: Avoid damaging your credit score. Use soft search tools on providers’ websites or aggregators like MoneySuperMarket.

3. Know the transfer time: It can take up to 10 working days to complete a balance transfer.

4. Budget to clear the balance: Divide the total by the number of 0% months and aim to pay that each month.

🏁 What Happens When the 0% Period Ends?

Once the 0% promotional period expires, any unpaid balance starts accruing interest — often at 20% or more. It’s crucial to:

• Have a repayment plan from the start

• Consider re-transferring to another 0% deal if you still have outstanding debt and qualify

📌 Final Thought: Is a Balance Transfer Right for You?

Balance transfer credit cards can be a smart, cost-effective way to get on top of debt — if you’re committed to paying it off within the interest-free period and don’t use the card for new spending.

Done right, they offer breathing room and serious savings. But misuse can land you deeper in debt.

✅ Quick Recap