What is a money transfer?

A money transfer lets you move money from your credit card to your bank account.

You can use a money transfer credit card to pay off debt or borrow money for a purchase. With a 0% deal, you can repay what you owe without paying any interest.

You could use a money transfer to:

  • Pay off an overdraft, personal loan or payday loan

  • Fund a large purchase, like buying a car privately

Money transfer fees

Providers charge a money transfer fee, which can be up to 4% of the balance you are transferring.

For example, if you wanted to transfer 2,000 and there was a 3% balance transfer fee, it would be 60. This would make your credit card balance 2,060.

Interest charges

The interest you pay in addition to a money transfer fee will depend on whether you have a 0% deal or not:

  • If you do not have a 0% deal, your card provider will charge you an APR, which in an interest charge on your balance.

  • If you do have a 0% deal, you will not pay any interest on the amount you transfer until the deal ends.

How to choose a card

If you want to pay off the balance in full before paying interest, choose a 0% money transfer deal that gives you enough time to repay the amount you transfer.

For example, if you had a balance of 5,400 to clear over 36 months, your repayments would need to be 150 a month to pay it off in time.

You can then choose a credit card deal that offers a long enough 0% period for you to be able to afford the monthly repayments.