Astute credit card holders know they can shop around for a new card and transfer the balance from their old one, benefiting from a lower interest rate or even an interest-free period. Balance transfer credit cards are also a great way to consolidate debt from several cards to one.
Use our guide to the top ten best balance transfer credit cards to find the right card and save the most money on interest payments.
What is a balance transfer credit card?
A balance transfer credit card allows you to reduce the amount of interest you pay on credit card debt by transferring your credit card debt from another card to a credit card with a balance transfer deal.
Failing to pay off the balance on a credit card can prove a crippling expense. Fortunately balance transfer cards exist which allow borrowers to transfer all their credit and store card debt to a new card, and no longer pay any interest for an agreed period.
Put simply, borrowers can transfer their existing credit and store card debt on which they are paying interest to a new card which moves them to zero interest for an agreed period.
And since, the balance transfer card provider charges no interest on the money which has been moved over, borrowers can better manage their credit card debt.
How do balance transfer credit cards work?
Typically, balance transfers do not charge a fee for short borrowing periods. The fees tend to increase if you want a longer repayment period. For example, the Santander balance transfer card with an 18-month repayment rate charges no fee. In contrast, the HSBC balance transfer card with a 29-month repayment period, charges a 2.75% fee. The trick is to decide how quickly you can realistically repay the debt and find a card offering the closet repayment period. You should also shop around. As you can see from the comparison table below, the rates and rewards vary, and often quite significantly.How do you transfer a balance to a different credit card?
Transferring is relatively straightforward and can usually be done online. However, it is not possible to transfer to a new card offered by the same company with which you already hold cards. This might mean it is trickier it may be to find a balance transfer card provider if you hold a lot of cards. Borrowers will also need to meet eligibility criteria. The worse your credit score, the tougher it will be to get accepted, and lenders may charge higher fees or make the borrowing conditions more stringent.What are the benefits of using a balance transfer card?
The benefits to moving to a balance transfer card are clear; you no longer have to pay interest which means you can repay your debt more quickly and efficiently. Second, credit card companies may also incentivise borrowers to transfer by offering them rewards and other perks. What are the downsides of transferring a balance to a different credit card? The major drawback of a balance transfer card lies in the high APR. If you fail to pay off the balance within the agreed time parameters, you may end up paying much higher interest than you might on an ordinary credit card. Similarly, if you do not pay off at least the minimum each month, the lender may drop the 0% rate. You must also understand the transfer fees.Top ten balance transfer credit cards reviewed
We have selected some of the most attractive balance transfer cards on the market (based on a credit limit of £1,200) showing a range of repayment periods. None of the providers in this table charge an annual fee.| Balance Transfer Credit Card | Balance Transfer Offer |
|---|---|
| TSB Platinum Balance Transfer Mastercard | 0% on balance transfers you make in the first 90 days then reverting to 22.95% |
| Yorkshire Bank Gold Mastercard | 0% for 12 months reverting to 18.9% |
| IHG Rewards Club Credit Card Mastercard | 0% for 12 months reverting to 22.9% |
| Santander Everyday Credit Card Mastercard | 0% for 12 months reverting to 22.9% |
| MBNA Long 0% Money Transfer Credit Card | 0% for 12 months reverting to 23.94% |
| Virgin Money 12 Month All Round Credit Card Mastercard | 0% for 12 months reverting to 29.9% |
| The Royal Bank Balance Transfer Credit Card (existing customers) | 0% for 14 months reverting to 24.9% |
| The NatWest Balance Transfer Credit Card (existing customers) | 0% for 14 months reverting to 24.9% |
| Nationwide Member Credit Card All Rounder | 0% for 15 months reverting to 19.9% |
| Santander All in One Credit Card Mastercard | 0% for 15 months reverting to 21.9% |
| Barclaycard Platinum 15 Month No Fee Balance Transfer Visa | 0% for 15 months reverting to 23.9% |
| M&S Bank Shopping Plus Mastercard | 0% for 15 months reverting to 23.9% |
| HSBC Balance Transfer Credit Card Visa | 0% for 16 months reverting to 23.9% |
| Virgin Money 16 Month Balance Transfer Credit Card Mastercard | 0% for 16 months reverting to 29.9% |
| Sainsburys Bank Nectar Credit Card | 0% for 17 months reverting to 20.95% |
| Bank of Scotland Platinum 0% Purchase and Balance Transfer Mastercard | 0% for 17 months reverting to 22.94% |
| Santander World Elite Mastercard | 0% for 18 months reverting to 18.9% |
| Nationwide Member Credit Card Balance Transfer offer Credit Card Visa | 0% for 18 months reverting to 19.9% |
| HSBC Premier Credit Card Mastercard | 0% for 18 months reverting to 23.9% |
| MBNA 0% Transfer and Purchase Credit Card | 0% for 19 months reverting to 23.94% |
| Halifax Online Balance Transfer and Purchase Credit Card Mastercard | 0% for 20 months reverting to 19.95% |
| Virgin Money 20 Month Balance Transfer Credit Card Mastercard | 0% for 20 months reverting to 23.9% |
| Lloyds Bank Online Platinum 20 Month Balance Transfer Mastercard | 0% for 20 months reverting to 23.94% |
| Lloyds Bank Online Platinum 20 Month Purchase and Balance Transfer Mastercard | 0% for 20 months reverting to 23.94% |
| first direct Credit Card Visa | 0% for 20 months reverting to 24.9% |
| Bank of Scotland Platinum Low Fee 0% Balance Transfer Mastercard | 0% for 22 months reverting to 22.94% |
| The NatWest Longer Balance Transfer Card | 0% for 23 months reverting to 24.9% |
| The Co-operative Bank Balance Transfer Credit Card Visa | 0% for 24 months reverting to 20.6% |
| Lloyds Bank Online Platinum 24 Month Balance Transfer Mastercard | 0% for 24 months reverting to 23.94% |
| Halifax Low Fee 0% Balance Transfer Credit Card Mastercard | 0% for 25 months reverting to 23.9% |
| Virgin Money 26 Month Balance Transfer Credit Card Mastercard | 0% for 27 months reverting to 23.9% |
| M&S Bank Transfer Plus Mastercard | 0% for 28 months reverting to 23.9% |
| Lloyds Bank Online Platinum 28 Month Balance Transfer Mastercard | 0% for 28 months reverting to 23.94% |
| Sainsbury’s Bank No Balance Transfer Fee Credit Card Mastercard | 0% for 28 months reverting to 23.95% |
| Sainsbury’s Bank Balance Transfer Credit Card Mastercard | 0% for 29 months reverting to 21.95% |
| Danske Bank Mastercard Standard Credit Card | 0% for 5 months reverting to 22.85% |
| TSB Classic Mastercard | 0% for 5 months reverting to 28.95% |
| HSBC Rewards Credit Card | 0% for 6 months reverting to 23.9% |
| Virgin Money Virgin Atlantic Reward Credit Card | 0% for 6 months reverting to 26.9% |
| Virgin Money Virgin Atlantic Reward Plus Credit Card | 0% for 6 months reverting to 26.9% |
| John Lewis and Waitrose Partnership Mastercard credit card | 0% for 6 months reverting to 27.95% |
| Capital One Balance Transfer Mastercard | 0% for 6 months reverting to 34.94% |
| Virgin Money Travel Credit Card Mastercard | 0% for 9 months reverting to 23.9% |
| Tesco Bank Clubcard 0% Balance Transfer Fee Mastercard | 0% for up to 22 months (2.75% fee) reverting to 24.9% |
| Ulster Bank Balance Transfer Credit Card Mastercard | 0% interest for 14 months reverting to 24.9% |
| Fluid Credit Card | 0% per annum for 9 months from account opening for balance transfers made within 60 days of account opening or as we let you know at the time reverting to 34.9% |
| MBNA Long Term Low Interest Credit Card | 4.9% for 48 months reverting to 8.9% |
| Halifax Credit Card Mastercard | 5% (0% fee if transfer is done within the first 90 days) |
| The Co-operative Bank 3 Year Fixed Rate Visa | 8.9% for 36 months reverting to 18.2% |
| AIB (Formerly First Trust Bank (NI)) Student Mastercard | Up to 56 days intrest free If you pay your balance in full and on time each month, you will not pay any interest on purchases, cash advances or balance transfers. Then reverts to 12.9% |
| AIB (formerly First Trust Bank (NI)) Visa/Mastercard Option 1 | Up to 56 days intrest free If you pay your balance in full and on time each month, you will not pay any interest on purchases, cash advances or balance transfers. Then reverts to 18.9% |
| AIB (Formerly First Trust Bank (NI)) Visa/Mastercard Option 2 | Up to 51 days interest free, If you pay your balance in full and on time each month, you will not pay any interest on purchases, cash advances or balance transfers. Then reverts to 16.9% |
Different Types of Credit Card
All Credit Cards
Everyday credit cards offer you the most flexibility for everyday use while having a reasonable interest rate, a balance transfer option and an initial interest-free period on purchases.
Balance Transfer Credit Cards
Astute credit card holders know they can shop around for a new card and transfer the balance from their old one, benefiting from a lower interest rate or even an interest-free period. Balance transfer credit cards are also a great way to consolidate debt from several cards to one.
Rewards Credit Cards
Reward credit cards are an easy way to earn hundreds of pounds in bonuses, just for your normal spending. But while some offers look valuable, you might be paying through the nose in interest fees. Also, consider whether the rewards offered are worthwhile to you.
Cash Back Credit Cards
You’ll be familiar with the cashback concept, where you earn rewards in the form of money or credit on your account when you spend. You must shop around as the “earn rate” varies, while some cards affiliated to a brand reward more for spending with that brand.
Travel Credit Cards
Don’t get hit by high fees when using your credit card abroad. Look for a credit card that offers no fees on foreign transactions and preferably some rewards as well.
Bad Credit Credit Cards
When you have a poor credit score, perhaps because of bankruptcy or some form of previous default, you can begin to rebuild your score using these cards. For those with credit problems here are our top ten bad credit credit cards.
Money Transfer Credit Cards
Using a credit card to pay off your expensive bank overdraft (or another loan) makes total sense when you can do so interest-free. Therefore, look for a card that has the longest 0% money transfer period and pay off as much as you can from the card quickly.
Air Miles Credit Cards
Bag yourself free travel simply by spending on your credit card. But select your card carefully as only some offer air miles, and some are more generous than others.
Purchase Credit Cards
If you use your credit card simply for purchases and are not concerned about balance transfers and other perks, you need to look at any interest-free purchase promotional period, followed by an ongoing generous low APR.