What is a balance transfer card?

A 0% balance transfer card lets you transfer the money you owe on one credit card to another, whilst avoiding interest charges for a fixed term.

A 0% balance transfer card can help you repay your debt quicker by eliminating interest.

Try and avoid using one deal after another if you know you won't be able to repay the debt, and consider an alternative way to get debt free instead.

Why avoid 0% balance transfer cards?

Here are several reasons why applying for a 0% balance transfer card may not benefit you:

  • You have poor credit and could get declined, further damaging your credit record

  • The transfer fee could cost than the interest you would save

  • You don't have a balance to transfer across

What happens if you don't repay the balance?

If you have an unpaid credit card balance, it will not negatively affect your credit record unless you miss a monthly repayment.

Your provider could also cancel any 0% months you have left if you miss a payment.

However, if you make the minimum payment at the very least each month, it can have a positive affect on your credit record.

Why get a 0% balance transfer card?

Here are some reasons why applying for a 0% balance transfer card could benefit you:

  • Your balance won't have interest added each month

  • Your monthly payments will pay off your balance quicker

  • You monthly payments could reduce

A 0% balance transfer card could save you hundreds of pounds in interest charges, especially if you have a large balance on your card.

What balance transfer cards are there?

Most credit cards let you transfer a balance, but some will charge you. The difference between balance transfer cards is:

  • The balance transfer fee

  • The term of the 0% deal

  • The amount the card lets you transfer

When you apply for a new credit card, the provider runs a credit check and assess your income to work out what credit limit you can have.

Q

Can you get 0% on balance transfers for the entire term?

A

You can normally only get 0% on any balances you transfer across within the first few months. Check with the provider before you apply.