# Balance transfer credit cards explained > Banking & current accounts · Last updated 23 June 2026 Canonical HTML: https://moneyguide.org.uk/banking/balance-transfer-cards-explained/ Markdown mirror: https://moneyguide.org.uk/banking/balance-transfer-cards-explained.md ## Quick answer A balance transfer card lets you move existing credit card debt to a new card with a low or 0% promotional rate, giving you time to pay down the balance without high interest — but fees, deadlines and post-promo rates matter. Balance transfer cards are one of the most effective tools for cutting credit card interest in the UK. You move debt from one or more cards to a new one with a promotional rate — often 0% for a set period. Used well, they can save hundreds of pounds. Used badly, they can leave you with a bigger problem when the promo ends. ## Key facts - Most balance transfer offers charge a one-off fee of around 2–4% of the amount transferred - 0% promotional periods typically last 12–28 months depending on your credit profile - You usually cannot transfer balances between cards from the same banking group - Missing a payment or spending on the card can cancel the promotional rate early ## How a balance transfer works You apply for a new credit card with a balance transfer offer. Once approved, you request a transfer from your old card(s). The new provider pays off the old balance and you owe the new card instead, usually at 0% or a very low rate for the promotional period. The transfer fee is added to your new balance immediately. For example, transferring £3,000 with a 3% fee means you owe £3,090 from day one. Set up a direct debit for at least the minimum payment — and ideally a fixed amount that clears the debt before the promo ends. ## Choosing the right offer Longer 0% periods are not always cheapest. A 28-month card with a 3.5% fee can cost more than a 18-month card with no fee if you plan to repay quickly. Check whether the promotional rate applies to new purchases as well as the transferred balance — many cards charge standard rates on spending even during a transfer promo. Your credit limit may be lower than the debt you want to move. Partial transfers are common; prioritise the highest-interest balances first. ## When the promotional period ends After the promo expires, any remaining balance is charged at the card's standard APR — often 20% or more. Mark the end date and plan to clear the debt or switch again before it arrives. Repeated balance transfers without reducing the underlying debt can signal financial stress to lenders and may affect future credit applications. ## Frequently asked questions ### Will a balance transfer hurt my credit score? A new application causes a short-term dip from the hard search and lower average account age. Over time, reducing your overall credit utilisation by consolidating debt can help your score recover. ### Can I transfer more than one card balance? Yes. Most providers let you transfer from multiple cards up to your credit limit, minus the transfer fee. ### What if I cannot get a 0% balance transfer card? A low-rate personal loan or a debt management plan through a free charity like StepChange may be cheaper than paying standard credit card interest. ## Primary source https://www.gov.uk/consumer-protection-rights/credit-cards ## Related - [0% credit cards explained](https://moneyguide.org.uk/credit/0-percent-credit-cards-explained/) - [Minimum payment trap](https://moneyguide.org.uk/credit/minimum-payment-trap/) - [What is a balance transfer fee?](https://moneyguide.org.uk/answers/what-is-balance-transfer-fee/) - [0% balance transfer period](https://moneyguide.org.uk/answers/what-is-0-percent-balance-transfer-period/) - [BNPL UK rules](https://moneyguide.org.uk/credit/buy-now-pay-later-uk-rules/) --- Independent UK money guidance from [Money Guide](https://moneyguide.org.uk). Money Guide is not a financial adviser and does not currently earn commission on credit cards. This guide is educational information only — always check the issuer's own terms, eligibility checkers and fees before applying. 18+, subject to status. Credit is a commitment: only borrow what you can repay in full each month, because interest charges erase every reward on this page.