In this guide
If you have credit card debt, shifting it to a balance transfer card charging no interest for a set period of time could be a good way to save money and clear your balance more quickly. Here’s our pick of the best balance transfer cards to help you choose.
Balance transfer cards can give you up to almost three years interest-free to pay off a credit card. This means your repayments go towards clearing the balance rather than the interest. It’s worth noting that some cards charge a fee to do this.
This article lists the best balance transfer cards and deals, plus tips on how to best pay off a credit card balance.
We outline:
- What is a balance transfer credit card?
- Our top picks for balance transfer credit cards
- How to get the most from a credit card
- Tips for qualifying for a credit card
- How can I improve my credit rating?
Read more: Best reward credit cards
What is a balance transfer credit card?
A balance transfer credit card lets you move a balance from one credit card, which is charging you interest, to another credit card charging less or no interest for a certain period of time. This means you save money on credit card interest, and your repayments go towards clearing the card balance more quickly rather than paying off interest.
Some cards will charge you a fee to transfer a balance from one card to another, but there are plenty that don’t.
If you’re paying interest on credit card debt, it’s worth seeing if you’re eligible for a balance transfer credit card. The top cards give you up to 29 months interest-free within which to clear the credit card balance as much as you can. After this, you’ll generally be charged interest again, so it’s always worth trying to clear the balance in the allotted time.
Plus, always make sure to make the minimum repayment each month on a balance transfer credit card. If you don’t, it could harm your credit record, and you could lose the interest-free offer.
Our top picks for balance transfer credit cards
For anyone who has already built up a balance on a credit card, switching to an interest-free balance transfer card will help save a packet in interest charges.
This is because credit cards typically charge interest of over 20% a year.
Below, we give our top choices for balance-transfer cards – see here how we rate them.
NatWest’s no-fee balance transfer credit card
Longest NO fee balance-transfer deal
– 13-month balance transfer period
– No balance-transfer fee
– 24.9% representative APR
NatWest’s no-fee balance transfer credit card offers 13 months interest free. This is the longest in the market for a card with no balance-transfer fee.
Meanwhile its representative APR – which is the interest rate that must be offered to at least 51% of customers – is a standard 24.9%.
Barclaycard Platinum 29 Month Balance Transfer Visa
Longest 0% balance transfer period, though not all applicants will get it
– 29-month or 14-month balance transfer period
– 3.45% fee
– 24.9% representative APR
Barclaycard’s no fee platinum balance transfer card has the longest balance transfer period on the market, for those who are eligible. However, this does come with a 3.45% fee, so you’ll need to factor these costs when transferring your debt.
Not all applicants will get the full 29-month 0% period. If you have a poorer credit history, you may instead be offered just 14 months interest-free.
Santander Everyday Long Term Balance Transfer Credit Card
Longest definite 0% balance transfer period
– 26-month balance transfer period
– 3% fee
– 23.9% representative APR
Santander’s offering charges a slightly lower fee than Barclaycard’s above. While the Santander’s card interest-free period isn’t as long, all accepted applicants are guaranteed to get it.
Virgin Money balance transfer credit card
Another decent 0% period, but there’s a fee
– 2% fee
– 24.9% representative APR
All accepted for this balance transfer card from Virgin Money will be offered an interest-free period of 14 months.
Barclaycard no-fee balance transfer card
Another no-fee balance transfer card with up to 12 months interest-free
– No fee
– 31.9% representative APR
Depending on your credit history, you’ll either be offered six months or 12 months interest-free. There’s no fee for transferring a balance to this card.
How to get the most from a credit card
Credit cards can offer the convenience of an easy way to pay for goods and services – as long as the money can be paid back by the payment date.
But even for those who need to borrow money for the longer-term, credit cards can be a cheap way to do so.
Some cards charge no interest on transferred balances for more than two and a half years.
That means people can spread the cost over several months if they need to and incur no charges.
But beware of the fees. Most balance transfer cards will charge an initial fee of up to 5% when you take out the card.
Should I get a personal loan or a credit card? We explain the difference.
0% balance transfer cards not for you?
That’s okay, these cards aren’t meant to be for everyone. Plus, it’s best you look at all your options first before deciding to apply with one lender.
A great way to start your research is to use our free eligibility checker, which is powered by Creditec. Using whole of market data, it takes your basic information and credit history to find the best cards available for you.
The best way to pay off your credit card balance
Anyone with a large credit card balance – £1,000 or more – should plan to get rid of their balance and the potentially high interest charges the debt can attract.
Switching to an interest-free balance-transfer card with no fee will buy some time. But it’s crucial to use that time wisely. Reducing the debt over the interest-free period will help clear it before charges can mount up.
If that interest-free period is 24 months, for instance, and the debt is £3,600, paying £150 a month towards whittling the debt down will clear it before interest charges kick in.
However, that only works for those who don’t use the card for new purchases during the interest-free period.
Anyone who does use their card will find the debt mounts up from that time as the interest-free element is only available on the balance that was originally transferred.
Failing to clear the debt can lead to a cycle where a new balance-transfer deal will need to be found at the end of the term, and so on.
Switching to an interest-free balance transfer card with no fee will buy some time but it’s crucial to use that time wisely.
Will I qualify for a credit card?
An application for a credit card is likely to be turned down if the person applying has a low credit score.
Anyone with no record of borrowing will have a lower score.
Anyone who has a history of borrowing money and repaying it back on time will have a higher score. This is because it will show they can be trusted to manage debt.
A credit record will include a history of all personal loans, mortgages and credit cards used. It can also include mobile phone contract history.
Any late payments will be a black mark and reduce someone’s score.
A low rating will make it hard to get a credit card with an inexpensive APR or long interest-free period. And a particularly poor score could well lead to an applicant being rejected for a credit card altogether.
To qualify for the best deals, it’s essential to check your credit score and take steps to improve it.
There are three main credit-reference agencies in the UK: Experian, Equifax and TransUnion.
They allow consumers to check their reports without charge. It is worth doing so before applying for a credit card.
Anyone with a low rating should consider taking steps to improve it.
Read more: Best travel cards, debit and credit cards to use abroad
How can I improve my credit rating?
There are various things people can do to improve their score and, surprising, the main one is pretty easy.
- Registering on the electoral roll is essential for a decent credit score, and anyone who isn’t on the roll will be hard-pushed to be accepted for credit.
- Paying bills on time is essential and that includes mortgages, rent and utility bills. The longer the period of regular bill-paying, the higher the credit score.
- Having a credit card is also a good way to improve a credit score, as long as it is used regularly and paid off properly. It demonstrates to financial firms that people can cope with being in debt.
Lenders are looking for evidence that people may be a low risk as borrowers. Those with no credit history will find that this adversely hits their credit score.
Bear in mind that applying and being rejected for a credit card will show up as a negative point on your credit record.
For that reason, it’s important to make use of what is known as “soft searches”. Some companies – such as comparison sites – allow consumers to “pre-apply” for a credit card. This in effect an eligibility check.
It gives consumers an indication as to whether a credit card company is likely to accept an application. Without that enquiry running the risk of leaving a black mark on their credit file.
Read more: Best credit cards for rebuilding poor credit
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