What is a balance transfer?

A balance transfer lets you move the debt from one credit card to another.

Balance transfers can only be used with a credit card or store card balance.

You can transfer balances from multiple cards as long as the total amount does not exceed the credit card limit.

Moving all your credit card debt into one place can make it easier for you to keep track of repayments and manage what you owe.

Balance transfer fees

Most credit cards will charge a fee on the balance you transfer, also known as a balance transfer fee.

This is usually a small percentage of the amount you want to transfer.

For example, if you transferred 1,000 with a 3% balance transfer fee, it would cost 30, making your total transferred balance 1,030.

If you are transferring a small amount, you may have to pay a small fixed fee instead of a percentage charge.

For example, a card may charge 3%, or 5, whichever is higher. This means that transferring 100 would come with a 5 fee rather than 3.

Interest charges

The interest you pay will depend on whether you are transferring to a card with a 0% deal or not.

  • If you are transferring to a 0% deal: You will not pay interest on your transferred balance until the 0% deal ends, so try and clear what you can before then.

  • If you are not transferring to a 0% deal: You will pay your card's APR on the balance, including the fee. This will be shown on your next statement.

Where to transfer

You can transfer your balance to a new or existing credit card, but you can cut out interest if you choose a 0% balance transfer deal.

To help you choose, work out how much you can afford to repay each month and look for a term that gives you enough time to repay your debt.

For example, if you can afford to repay 50 a month, and your balance is 1,000, it will take you 20 months to clear your debt before paying any interest.

If you want to check which credit cards are likely to say yes before applying, you can use our credit card eligibility checker before choosing.