Balance-transfer credit cards explained
FLD is not a lender or a credit broker and does not arrange credit. This is general information, not advice to borrow. Any representative APR shown is an example, not a personal quote: the rate you are offered depends on your circumstances and may be higher.
Important: This guide provides general information, not personalised financial advice. Financial products, rates and eligibility rules can change, so check the provider’s current terms before applying.
Quick answer
A balance-transfer card lets you move existing credit card debt to a new card, often at 0% interest for a set period. You usually pay a one-off transfer fee, shown as a percentage of the amount you move.
It only helps if you use the interest-free time to pay the debt down. When the promotional period ends, any remaining balance moves to the card’s standard rate.
What to compare on a balance-transfer card
| Feature | Why it matters | What to look for |
|---|---|---|
| Promotional period | How long you have at the lower rate | A length you can realistically clear the debt within |
| Transfer fee | A one-off cost added to the balance | Fee as a percentage, and the cost in pounds on your balance |
| Rate after the offer | What you’ll pay on any balance left | The standard rate shown in the summary box |
| Transfer window | Transfers often have to be made within a set time to get the offer | The number of days after opening |
| Purchase rate | Spending on the card may not be interest-free | Whether purchases have their own promotional rate |
General features as of 3 October 2026, not a ranking. Check each provider’s summary box for current offers.
Who it’s for
- People paying interest on credit card debt who can commit to regular repayments
- Borrowers with a credit history good enough to be accepted for a promotional rate
- Anyone who wants a fixed deadline to clear a balance
Who should skip it
These are general points to weigh up, not advice. You may want to look elsewhere if:
- You’re likely to keep spending on the card
- You can’t afford repayments that would clear most of the balance in the promotional period
- You’re struggling with existing debt — free help is available from charities such as StepChange, Citizens Advice and National Debtline
Full explanation
Here’s how the maths works. Move £3,000 with a 3% fee and you start with a £3,090 balance.
To clear it in 20 months at 0%, you’d need to pay about £155 a month. Our repayment calculator shows how long it would take at your own payment level.
Set up a direct debit for at least the minimum payment, and ideally the amount that clears the balance before the offer ends. Note the end date somewhere you’ll see it.
Eligibility depends on your credit history and affordability. Use a soft-search eligibility checker first, which doesn’t affect your credit score, and avoid lots of applications close together. Our credit score hub explains how lenders decide.
See also: Credit Score Basics: A Simple Guide for the UK
If debt is becoming hard to manage, a new card may not be the answer. Free, confidential help is available from debt charities such as StepChange, Citizens Advice and National Debtline.
The catch
The transfer fee is added to your balance straight away. Missing a payment can end the promotional rate early.
New purchases on a balance-transfer card may be charged interest, and you usually can’t transfer debt between cards from the same banking group. The credit limit you get may be lower than the debt you want to move.
Work out the monthly payment you’d need before you apply.
FAQs
How does a balance-transfer card work?
The new card provider pays off your old card balance, and you then owe the new provider instead — often at 0% for a set period, plus a transfer fee.
Is there a fee to transfer a balance?
Usually, yes. It’s normally a percentage of the amount transferred and is added to your new balance.
What happens when the 0% period ends?
Any balance left starts being charged at the card’s standard interest rate.
Can I transfer a balance between cards from the same bank?
Usually not. Most providers don’t allow transfers from cards in the same banking group.
Will a missed payment affect my 0% deal?
It can. Many providers can withdraw the promotional rate if you miss a payment, and a missed payment can also be recorded on your credit file.
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