Balance transfer credit cards
Shift existing card debt to 0% interest for up to 29 months
Are you paying credit card interest? It’s time to stop. A balance transfer credit card can save you thousands of pounds by significantly reducing the interest you owe. Our guide provides comprehensive information and top recommendations, and our Balance Transfer Eligibility Calculator will help you find the cards you’re most likely to qualify for.
Top-pick balance transfer cards
- Longest 0% cards
Tesco Bank 29 months, 3.49% fee
New. Virgin Money 28 months, 3.25% fee - 0% cards for poorer credit scorers
Virgin Money 16 months, 3% fee
Zopa 6 months, NO FEE - No-fee 0% cards
NatWest 13 months, NO FEE
What is a balance transfer card?
A 0% balance transfer involves obtaining a new credit card to settle existing debts on old credit and store cards. This way, your debt is transferred to the new card, but with a 0% interest rate. These cards come with a 0% interest period, often lasting several months, such as 28 months. During this time, you don’t pay any interest, though there might be a small fee associated with the transfer. This strategy helps you become debt-free faster since your repayments go directly toward reducing the principal balance instead of covering interest charges.
Which balance transfer card is best for me?
First, it’s important to note that you cannot transfer a balance between cards issued by the same bank or financial group. This limitation will influence your options for transferring debt. Once you’ve identified the banks you can work with, the next step is to determine which cards you qualify for, since you’ll need to pass a credit check as part of the application process.
To help with this, our eligibility calculator can estimate your chances of being approved for most of the top interest-free balance transfer cards listed in this guide, without affecting your credit score. If the calculator indicates that you’re eligible for several cards but you’re uncertain about which one to choose, follow this guideline…
Go for the card with the lowest fee in the 0% period you’re sure you can repay it in. If unsure, play safe and go long.
The five golden rules
- Always Clear Debt or Transfer Before the 0% or Low-Interest Rate Expires to Avoid High Costs
Cheap balance transfer deals are structured to benefit lenders once the 0% period concludes, as interest rates can significantly increase, typically to between 18% and 40%. However, you can avoid these high costs.
Pay Off the Balance Before the 0% Period Ends. To ensure you clear the balance before the 0% period expires, divide the total amount owed by the number of months you have at 0%, and make at least this payment every month.
Transfer the Balance Again if You Can’t Clear It in Time. If you’re unable to pay off the balance within the 0% period, consider transferring the balance to another card with a 0% offer. Should you be ineligible for new cards, another option is to transfer the debt back to the original card you used, provided it’s still open and has a lower interest rate than your current card.
2. Make Sure to Pay at Least the Monthly Minimum to Retain the Low Rate
Even if you’ve secured a 0% deal, it doesn’t mean you can neglect making payments. You need to pay at least the minimum amount each month, and ideally more. Failing to do so can result in penalties, and some credit card issuers may revoke the 0% deal, leaving you with a much higher interest rate.
How Much Should You Aim to Pay?
Strive to pay more than the minimum amount each month, unless you have other high-interest debts that should take priority. Minimum payments are structured to extend the debt payoff period, which is generally not in your best interest. For strategies to pay off your debt faster, check out our Credit Card Minimum Repayment Calculator.
3. Avoid Spending or Withdrawing Cash – It Can Be Costly
While balance transfers to the cards listed in this guide offer interest-free periods for several months, other transactions, such as spending and cash withdrawals, typically do not and will incur fees and interest charges.
Interest on Cash Withdrawals. For cash withdrawals, interest generally accrues from the date of withdrawal until the amount is fully paid off. This means you will likely see an interest charge on your first statement following the withdrawal, reflecting the interest accrued from the withdrawal date to the statement issue date.
Ongoing Interest Charges. You might also see interest charges on subsequent statements. There is usually a delay between your statement being generated and your payment being processed, ranging from a few days to a couple of weeks. During this period, interest continues to accrue on the withdrawal until the debt is settled.
Special Cards for Debt Shifting and Spending. If you need a card for both debt shifting and spending, it is advisable to opt for an all-rounder card that offers 0% interest for both balance transfers and spending. This way, you only need to apply for one card. For detailed information, check out our 0% balance transfer and spending guide. Alternatively, you can consider using a separate 0% credit card for purchases.
4. To take advantage of the 0% interest rate and avoid fees, you generally need to complete the balance transfer within the first one to three months.
For most credit cards, the 0% interest period is applicable only for balance transfers made within the first 60 or 90 days, although this timeframe can vary, so it’s essential to check the specific terms of your card. After this initial period, any transfers will accrue interest at the card’s standard rate unless they are paid off in full.
This rule often applies to the initial transfer fee as well, meaning that later transfers are likely to incur higher fees along with interest.
However, there are exceptions. Some cards require you to request the balance transfer at the time of application, while others permit transfers at any point during the 0% interest period. Keep in mind that the 0% period typically begins on the day the account is opened, so delaying the transfer reduces the amount of time you have to benefit from the interest-free period.
How to Request a Balance Transfer
When applying for a new card, there is usually a section asking if you want to transfer debts from other cards. You should enter the details of the other card(s) in this section. If your application is approved, the new card issuer will pay off the balance on the other card(s). If you don’t request the transfer during the initial application, you can usually do so later through your card’s online banking platform or by contacting the lender directly.
5. Balance Transfer Restrictions Between Cards from the Same Bank
When it comes to balance transfers, there’s a straightforward rule: you cannot transfer a balance between two credit cards issued by the same bank. For instance, transferring a balance from one Barclaycard to another is not permitted.
This rule can get more intricate with some cards, as certain providers also prohibit transfers between cards that belong to the same banking group.
| Banking group | Credit cards you can’t transfer a balance between |
| Capital One | Capital One, Littlewoods, Luma, Ocean, Post Office (cards issued after November 2019), Thinkmoney and Very |
| HSBC | First Direct, HSBC and M&S Bank. John Lewis cards applied for before 21 September 2022 are with HSBC group too. |
| NatWest | NatWest, Royal Bank of Scotland and Ulster Bank |
| NewDay | Amazon, Argos, Aqua, Fluid, John Lewis (if you applied for a card on or after 21 Sep 2022), Marbles and Opus. You’re also unable to transfer a balance from a store card or American Express |
| Santander | Cahoot and Santander |
| Virgin Money | B, Clydesdale Bank, Virgin Atlantic, Virgin Money and Yorkshire Bank. You’re also unable to transfer a balance from a non-UK issued American Express (for example, British Airways Amex) |
Top 0% Balance Transfer Credit Cards
While we have spotlighted some exceptional cards here, it’s important to know that our eligibility calculator offers a broader selection. Using the calculator will provide you with a customized best-buy table tailored to your needs. Additionally, it can indicate if you’re ‘pre-approved’ for any cards and, for some, even display a guaranteed credit limit.
When deciding between cards, opt for the one with the lowest fee within the period you are confident you can repay the balance. If you’re uncertain about your repayment timeline, it’s safer to choose a card with a longer 0% period.
Top-pick 0% balance transfer cards for new cardholders
Important: Balance transfer fees are a percentage of debt shifted. To get the 0% and fee, you must usually do the balance transfer within 60 or 90 days of opening. You can’t balance-transfer between cards from the same bank/group.｜Representative APR (variable) after the 0% period is stated above – your balance transfer interest may be different. (i) NatWest and Lloyds have asked us to only link to our eligibility calculator.｜See all official APR examples.
Top Balance Transfer Cards for Bad Credit
To qualify for most of the offers listed earlier, you’ll typically need a good credit score. However, if your credit history isn’t perfect, there are still options available. Several providers offer balance transfer cards for individuals with less-than-ideal credit records, though the interest-free periods tend to be shorter. Some of these cards may even approve applicants with previous defaults or county court judgments (CCJs). For more detailed information on cards designed for those with poor credit, refer to our comprehensive guide.
The following cards are part of our eligibility calculator, but they deserve special mention due to one significant distinction…
Once the 0% introductory periods expire, the post-promotional interest rates surge significantly, necessitating careful planning regarding debt transfer amounts. It’s crucial to note that all the cards listed below carry hefty annual percentage rates (APRs) of up to 34.9% after the conclusion of their 0% periods. Thus, it’s imperative to juxtapose this against your existing card’s interest rate. If your current card imposes a higher rate, it’s advisable to transfer as much debt as feasible. Conversely, if your current card boasts a lower rate, it’s prudent to only transfer an amount of debt that you’re confident you can settle within the 0% introductory period.
Top poor credit balance transfer cards for new cardholders (i)
Virgin Money |
Longest 0% period available for poorer credit scorers. All accepted get the full 16 months at 0%. You must have a history of managing credit, even if you’ve had CCJs or defaults in the past, and a yearly minimum personal income of £15,000 (including non-salary income such as pensions). | |
| – 16 months 0% – 3% fee– 29.9% rep APR |
Check eligibility | |
| Apply* | ||
Zopa |
Longest 0% period with NO FEE for poorer credit scorers. All accepted get the full 6 months at 0%. You must have a minimum yearly personal income of £10,000, plus two active lines of credit such as a phone contract or overdraft. | |
| – 6 months 0%
– NO FEE – 34.9% rep APR |
Check eligibility (ii) | |
| The next-best poor-credit balance transfer cards. Here are brief details of decent alternatives. | ||
| Fluid | – 9 months 0%
– 3% fee – 34.9% rep APR |
Check eligibility (ii) |
| Capital One | – 6 months
– 3% fee – 34.9% rep APR |
Check eligibility(ii) |
Important: Balance transfer fees are a percentage of debt shifted. To get the 0% and fee, you must usually do the balance transfer within 60 or 90 days of opening. You can’t balance-transfer between cards from the same bank/group. (ii) These providers have asked us to link only to our eligibility calculator – as they don’t have these cards available to apply for directly. | See all official APR examples.
Cashback sites may pay you for signing up
In addition, individuals who join specialized cashback platforms may receive compensation upon registering for certain financial services. However, it’s essential to verify that the offer remains identical, as terms might vary. It’s important to note that the receipt of cashback is not guaranteed until it reflects in your account.
Explore the comprehensive guidance and weigh the advantages and disadvantages provided in our comprehensive guide to top cashback platforms.
If you can’t get a new 0% card, try the credit card shuffle to cut interest
If none of the aforementioned cards are within your reach (utilize our eligibility calculator for confirmation), there remains a chance to reduce interest costs by negotiating for a low-rate or 0% deal with your existing card provider.
In cases where you possess multiple credit cards, you can strategically transfer debt to the card offering the most favorable rate. However, it’s essential to account for any one-time transfer fees.
Here’s a systematic approach:
- Evaluate your debts comprehensively. Take inventory of your financial situation and document all outstanding debts, including any overdrafts. Our credit card shuffle worksheet could assist in this process.
- Explore existing-customer offers on your accounts. Occasionally, lenders extend special deals (such as reduced rates or 0% APR for a specified period) for transferring new debt to your current cards, typically involving a one-time fee. These offers are usually accessible through your online account or via direct communication with your card provider.
For instance, if you’re servicing debts at 18.9% APR on one credit card and manage to secure a low-rate deal at 6.9% APR on another card in your possession, you could potentially save around £120 in interest over a year on a £1,000 debt.
- Transfer debts to the most economical card. Execute a balance transfer to relocate your debt from the card(s) imposing the highest interest rates to the one with the lowest rates (or spread across multiple low-rate cards if your credit limit permits). Consider shifting debt from cards offering 0% deals for balance transfers, albeit mindful of balance transfer fees that could offset potential savings.
- Prioritize repayment of the costliest debts first – a critical step. Once you’ve optimized your debt expenses, revisit the credit card shuffle worksheet to reorder them. Channel as much available cash as feasible toward clearing the most expensive debt initially, while maintaining minimum repayments on any less burdensome debts. Progress to the next highest-rate debt once the former is settled, continuing until you achieve debt-free status.
What if you have debts with varying interest rates on a single card?
If you decide to transfer your balance to a card offering a special low rate, but you already have existing debts on it with higher interest rates, the provider will prioritize your repayments towards the debts with the higher rates. This is advantageous, as it ensures that the most costly balance is paid off first, a reversal of the previous approach.
However, to maximize the benefits of this strategy, an additional step is necessary:
Concentrate your repayments solely on the high-interest debt until it is fully repaid. Once you’ve completed the balance transfer and identified the order in which you should repay each portion of debt, ensure that you cease payments once the high-interest portion is cleared. For instance, if you have:
Card A: £1,000 balance consisting of £700 at 6% and £300 at 25% interest. Card B: £400 balance at 18% interest.
Your priority should be to pay off the £300 with the 25% interest first, then proceed to clear the £400 balance, and finally tackle the £700. Always remember to meet the minimum payment requirement on the card you are not actively focusing on.
How much could I save doing the credit card shuffle?
The credit card shuffle needs careful management but if you follow the steps above, you could cut the total amount you have to repay by thousands.
Here’s an example, showing the interest you’d pay doing a credit card shuffle vs not doing the shuffle:
£7,000 debts repaying £100/month on each card until repaid in full
| Card & credit limit | WITHOUT SHUFFLE | WITH SHUFFLE | ||||
|---|---|---|---|---|---|---|
| Interest rate |
Debt | Total interest (1) |
Interest rate | Debt (2) |
Total interest (3) | |
| Card A £3,000 | 14.9% | £1,500 | £141 | 14.9% on existing debt, 6.9% on new debt |
£1,500 £1,500 |
£526 |
| Card B
£3,000 |
16.9% | £0 | £0 | 0% for four months then 16.9% | £3,000 | £235 |
| Card C £2,000 | 19.9% | £500 | £23 | 19.9% | £0 | £0 |
| Card D £5,000 | 17.9% | £5,000 | £1,784 | 17.9% | £1,000 | £31 |
| Total | Avg rate = 17.4% | £1,948 | Avg rate = 14.1% | £792 | ||
| (1) £100 monthly repayments on each card until card fully repaid. (2) All debt now balance-transferred; to do this, it was moved off the card and returned. (3) Repaying most expensive debt prioritised while paying minimum on other cards. | ||||||
With normal debts of £1,500 on Card A, £500 on Card C and £5,000 on Card D, the average interest rate is 17.4%. Repay £100/month on each card and by the time you’ve cleared the cards in full, the interest totals £1,948.
Yet shuffle as much as possible on to Card A’s 6.9% existing-customer offer for new debt and the rest to Card B at four months 0% then 16.9%, and then repay the most expensive debts first. This way the average interest rate is reduced to just over 14%, meaning the interest is only £792, less than half the cost – meaning a massive saving of £1,156.