Balance Transfer Credit Card 40mths 0%, 2.99% fee
A balance transfer can cut £100s or £1,000s off the cost of existing borrowing. It’s where you get a new credit card to pay off debts on old cards for you so you owe the new card but at a far lower rate; meaning you’re debt free quicker.
This guide takes you through how to safely shift your debts, compares the longest 0% and no fee 0% deals and includes our unique ‘eligibility calculator’ to find the cards you’ve the best chance of being accepted for.
The six golden rules
Before you do a balance transfer there are six things you need to know. Get this wrong and it can cost you large, so please read the following (even if you only have time to read and remember the headlines it should help protect your pocket).
1. Always clear debt or shift again before the 0% or cheap rate ends, otherwise costs rocket
Cheap balance transfer deals are designed to make lenders money when you fail to pay them off, or switch to a new 0% before the low rate ends. At that point, the interest rate jumps massively, to a standard 15%-20% APR.
What can I do if I cant pay off my debt within the 0% period?2. Repay AT LEAST the set monthly minimum (preferably more) or you may lose the cheap rate
Just because you grabbed a 0% deal, it DOESN’T mean you can get away with paying nothing – you must pay at least the minimum monthly payments. Otherwise you will be hit with penalties and some card providers will withdraw the deal, leaving you on an expensive rate.
How much should I aim to pay?3.Don’t spend or withdraw cash on cheap balance transfer cards. It’s not usually at the cheap rate
Credit cards let you spend, shift debt or withdraw cash but banks must put repayments towards the most expensive debt first. So spending on a balance transfer card isn’t as bad as it was, as repayments first clear the spending, but it can still cost, as you only avoid interest if you pay off the FULL balance, including transfers and purchases.
If I need to spend, what is the best option?Why do I pay interest on my cash withdrawal if Ive paid it off in full?
Does withdrawing cash on a credit card affect my credit score?
4. To protect your credit score use our eligibility calculator before applying to find which cards you’re most likely to get
The only way to know if you’ll be accepted is to apply, but each application marks your credit file. Some cards let you do a pre-application check to work out whether to go ahead.
How does the eligibility calculator work?Will credit scoring affect the deal I get and my credit limit?
5. You might not get the headline 0% deal you apply for
We’ve long warned about the dangers of representative APRs, where you might be accepted for a card, but get a higher interest rate. But now there’s another catch to watch out for too – deals that tell you they’re “15 months at 0%” or “34 months at 0%” on balance transfers, which also have the words “up to” before the deal.
What this means is that you could apply for, say, the top 36 month 0% balance transfer deal, but you could be one of those accepted, but given a worse 18 months at 0% deal – and for the same fee.
We highlight cards that do this by putting “up to” before their headline number of months, and tell you the other deals you could get in the need-to-knows in the product boxes.
Sadly, the only way to know what 0% deal you’ll get is to apply. Anecdotally, though, it seems that the higher you score in our eligibility calculator (which doesn’t affect your credit score), the more chance you have of getting the headline 0%.
Why do lenders give some applicants worse deals?6. You may be able to cut your interest WITHOUT new cards
Most cards in this guide are 0% deals, but usually require a good credit score. If your score is patchy, the Credit Card Shuffle could be the solution. It isn’t the latest poker trick but our technique to allow you to shift debt around cards you have (if you’re not maxed out). It’s complex, but it’s saved people £100s, without new cards.
How do I do the credit card shuffle?