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Balance transfers


A balance transfer is when you move some or all of your outstanding debt from an existing credit card to another credit card.

It means you could pay low or no interest on debt, making it a more cost effective method of borrowing.

How balance transfers work

Balance transfers allow you to enjoy low interest rates or even 0% interest for a set period.

The way it works is simple. You transfer your debt from one credit card to your preferred card, allowing you to take advantage of a lower or 0% interest rate.

The amount you pay back each month will be up to you – though there will be a minimum payment requirement. And of course, you will need to make all of your repayments on time. It’s also a good idea to repay your balance before the interest-free period ends. Otherwise your rate is likely to rise and you’ll have to pay back more.

There are sometimes limits on the minimum and maximum amounts you can transfer – these will be stated in your terms and conditions if applicable, so you should check those before you do anything.

Balance transfer fees

When you transfer an existing balance to another credit card, you are likely to be charged a balance transfer fee. The amount you pay will be dependent on your provider and the terms and conditions of your contract.

Potential charges

As with any other type of credit card, you may be charged a penalty if you're late, miss your repayments or you exceed your credit limit. Not only could this be costly, but it could also damage your credit rating and make it harder to apply for credit in the future.

Need more information on balance transfers?

If you would like more information on balance transfers - see FAQs