Balance transfer credit cards

Annual Percentage Rate (APR) is a key figure that helps you compare credit card offers more easily. It represents the total cost of borrowing on a credit card, including both the interest rate and any standard fees (like annual fees or late payment charges).

After any introductory 0% interest period ends, the APR will tell you how much you'll pay on any outstanding balances. Generally, a higher APR means higher interest charges and larger repayments, so it’s important to find a card with a competitive APR, especially if you’re carrying a balance after the promotional period.

Yes, you could be offered a shorter introductory period than advertised. If you have a lower credit rating or past credit issues, credit card providers may offer you less favourable terms, such as a shorter 0% period. To get the best deal, it's important to improve your credit score before applying.

Most credit card providers charge a balance transfer fee of around 3% when you move your debt from one card to another. This varies between cards and providers.

As the fee is worked out as a percentage, the cost of the transfer fee will rise with the amount you transfer.

The rate you see advertised isn’t necessarily the rate you will get. Credit card providers only have to give the typical APR they advertise to 51% of successful applicants. If you don’t have a good credit score, you might be given a higher APR.

Check that the rate you see advertised is the rate you will actually get to avoid a shock when your first statement arrives. Again, getting your credit rating into good shape will help your chances of getting the best deals.

Your options for balance transfer credit cards will be limited if you have bad credit. Most credit cards transfer deals will only accept people with a good or excellent credit rating.

You might have a higher chance of being approved for a credit card for bad credit.

A balance transfer can have a short-term impact on your credit score but may help improve it over time. When you apply for a balance transfer credit card, the lender carries out a hard credit check, which can temporarily lower your score. Opening a new account can also reduce the average age of your credit history, which may affect your score.

However, if you use the balance transfer to pay off debt more effectively — especially with a 0% interest period — it could boost your score in the long run. To minimise any negative effects, avoid applying for multiple balance transfer cards at once, keep old accounts open where possible, and aim to clear your balance before the interest-free period ends.

A balance transfer doesn't count as your monthly payment until it's completed. Once the transfer is done, it will count toward the minimum payment, as long as the transfer amount covers the minimum required and is processed on time. It's always worth checking your lender's terms to confirm that this is the case.

You can typically transfer between £100 and up to 93% (or even 95% with some providers) of the debt you owe on your existing credit cards to a balance transfer card. However, the transfer amount is limited by the credit card provider’s terms and conditions, including balance transfer fees and pending purchases.

If the transfer limit isn’t enough to cover your total debt, you can apply for multiple balance transfer cards to consolidate your debt, but always be mindful of the impact this could have on your credit score.

The time it takes to transfer a credit card balance depends on whether you're transferring to an existing or new card. If you're transferring to an existing balance transfer card, it can take as little as one working day, though delays can occur if it's after business hours or additional checks are needed.

For a new balance transfer card, the process usually takes between 5-10 working days. This is because your account will need to be activated before the transfer can be completed. Always continue making payments on your original card until the transfer is complete to avoid extra fees or interest.

After you transfer a balance to a new credit card your old account will remain open unless you contact the provider to close it. It's advisable to keep the original account open until the balance transfer is complete to avoid missing any payments or accumulating interest.

If you choose to close the account, be sure to destroy the card. Keeping the account open could benefit your credit score by lowering your credit utilisation ratio, but there are also potential downsides, such as the temptation to spend or having to pay annual fees.