*£854.98 interest saved in first 12 months. £3,900 balance transferred from a 29.9% APR card to a 0% card for 29 months, then 24.9% (variable), with a fixed monthly payment of £195. Includes 3.49% transfer fee of £136.11. Representative 24.9% APR. Terms offered depend on your financial circumstances and borrowing history. Find full calculation here. Updated October 2024.
A money transfer card allows you to transfer money from your credit card to your bank account.
It's effectively the same as a cash loan.
It can be useful if you're paying a high rate of interest on your bank overdraft and you want to clear it, where the interest rate on your credit card is lower.
You can also use a money transfer credit card to add a cash sum to your current account as a short-term loan to use for whatever you like.
Money transfer cards frequently come with a 0% interest period - but they're not entirely free, as they generally have money transfer fees attached.
However, as long as you clear your balance on time, they might well work out cheaper than a personal loan for small amounts.
Your first step is to compare deals and find a money transfer credit card.
Look for the right balance of fees and 0% interest periods to find your ideal card.
Using an eligibility checker will mean you can see how likely you are to get an offer before applying.
You need to tell your credit card provider where you want the money you transfer to end up.
You can't simply withdraw the money from a cash machine or spend on the card, as that would mean interest (and potentially cash transaction fees).
Once your card arrives, you'll have a limited window to make the transfer to your nominated bank account.
This is typically within the first 60 or 90 days of opening the account.
Simply log in to your new account then tell your card provider how much you'd like to transfer across.
Money transfers might be 0% interest for a set period, but they're not free.
All current providers charge a money transfer fee, which is typically 4% of the amount of cash you move across.
This is generally added to your credit card balance.
It's incredibly important to make sure you've set up repayments for the card.
That's because if you miss a payment, you could sacrifice your 0% deal, seeing you charged interest on anything left on your balance. Missed payments will also be noted on your credit record.
A direct debit to cover at least the minimum monthly payment is the easiest way to stop this happening to you.
The right money transfer credit card deal for you is one that best fits your very personal financial needs.
If it’s going to take a long time to sort out your finances, compare the money transfer credit cards with the longest interest free periods.
To cut the cost of your debt, consider a money transfer credit card with the lowest transfer fee. You can see the different options in our comparison tables.
Money transfer cards often trade off the length of the interest free period against the transfer fee. The longer the 0% period, the bigger the transfer fee and vice versa.
The best money transfer credit card for you ultimately depends on how long you think it will take you to pay off the debt.
If you think you can pay off the debt in a brief time, you could get a card with a short interest free period and a low transfer fee.
A money transfer card can help you save money that you otherwise would have paid in interest on current debt.
For example:
You have a debt of £1,500. The annual percentage rate (APR) on your debt is 20%. This adds £25 a month to your debt (£300 a year).
You decide to use a money transfer card to pay off the debt. The offer on the card is 0% on money transfers for 24 months.
The cost to transfer money into your bank account is 4%, which is £60.
Although your debt is now £1,560, you will not have to pay any interest on it for 24 months, potentially saving you £100s.
You must meet your minimum monthly repayments or risk losing your 0% interest offer.”
Not on their own.
But there are two things that might affect your credit worthiness about the process if you're not careful.
Firstly, applying for a new credit card is always recorded on your credit history and applying for a lot of cards in a short space of time can make you look desperate for cash.
Card finder and eligibility checker tools don't show up to other lenders on your credit record, however, so it's wise to use one before applying to limit the number of applications you'll have to make.
Secondly, lenders look at something called your "total available credit" before making a decision. This is worked out by adding up all your credit card and overdraft limits.
A new card adds to this total, but unless you've already got a large number of cards with high credit limits - for example equal to your annual salary - it probably won't be a problem.
Money transfer cards and balance transfer cards are similar because they both involve shifting debt from one place to another.
With a balance transfer card, you can move debt from a card charging you interest, to one with lower or no interest. It can be a good way to pay off existing credit card debt or to consolidate your debts.
A money transfer card lets you transfer money (credit) from the card to your bank account, where it’s considered cash. Many people use these cards to pay off an overdraft.
It’s like releasing a cash sum to clear debts or provide a quick cash boost.
Credit card transfers can be an effective way of borrowing small amounts of money over a short term without paying interest. But they may not be the best way for you to borrow cash.
Typically, you need a good credit rating to get one. If you have a bad rating and apply anyway, you risk being rejected by the card provider. A rejection will damage your score even further.
To avoid paying interest on the credit card debt, you need to be sure you can at least meet the minimum repayments.
If you don't repay the card before the interest free period expires, you’ll be charged interest on the remaining debt. This is the card's APR, or annual percentage rate.
To transfer money from a credit card to your bank account, you need a card designed for that purpose. You can apply online, over the phone or in branch.
To be sure you get the best one for you, it is good practice to compare money transfer cards first. You can do this using comparison tables like the one above.
After your application has been approved, the card provider will send you the physical card in the post. This may take around 5 working days.
Once you have your card, you can transfer credit into your bank account. When the cash arrives in your current account you can spend it in the same way as you normally would with your debit card or by withdrawing cash. You can do this without incurring any fees or charge (as long as it is an ATM that provides free cash withdrawals).
This is a much better option than trying to withdraw cash using a credit card. Technically, you can take out money using your credit card. But it's best avoided because it shows up in your credit file and damages your credit score. You’ll also be charged fees and interest from the date of the transaction.
Yes, you can transfer money from a credit card to a bank account. But your money transfer card application must be approved first.
One advantage is that by transferring a sum of money to your current account, you can avoid paying any interest on your debt.
Not all credit cards are designed to let you switch money from your credit card to your current account. Those that are, will charge you a small fee.
The transfer fee is usually around 1% to 4% of the money transferred. You need to factor this into your calculations when working out whether it’s worth making the transfer.
Compare the cost of the transfer fee with the cost of continuing to pay the charges on your overdraft. Although overdraft fees are no longer allowed, banks can charge a fixed interest rate. Some previously introduced rates of up to 40%, which the FCA looked into.
So, moving money from your money transfer credit card into your bank account may help you sort out your finances in the short term.
Remember to think about how you're going to pay off the debt on your money transfer credit card. For example, you could set up a monthly payment from your current account to gradually clear the debt.
The best money transfer cards have 0% interest periods lasting over 2 years. If you pay back your balance in full during this interest free period, you will not pay any interest.
When we use the term ‘most popular or ‘popularity’ on Uswitch in reference to credit cards, these cards are ranked by the number of clicks they have received on the site in the past 30 days.
The most clicked on cards are at the top, with the least at the bottom. This reflects how popular they are with visitors to Uswitch.com. Consequently, this is a good table to look at if you’re interested in seeing which cards most people think are worth getting.
We compare over 100 credit cards from all of the major banks and credit card providers.
However, we do not compare all the credit cards that are available in the UK.
This is because some credit card providers have offers that are only available exclusively through their own website or branch, or through other comparison websites - in the same way some credit cards are exclusively available through Uswitch.
There are also many credit cards that are only available to people in member organisations and clubs.
Our best deals on a range of credit card categories by use:
Our top credit cards by type, most popular deals and business cards
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