Should I Transfer My Credit Card Debt? A Guide to Balance Transfers
Published 19th of March 2013·Updated 6 April 2026
Reviewed by: Reviewed for accuracy April 2026
Transferring your credit card debt to a 0% balance transfer card can save you a significant amount in interest and help you clear what you owe faster. Standard credit card APRs in the UK typically range from 20 per cent to 35 per cent; moving your balance to a 0% deal freezes that interest for a fixed period, meaning every payment you make reduces the actual debt rather than just servicing the interest.
Short Summary
A balance transfer moves your existing credit card debt onto a new card, often at 0% interest for a promotional period. The best deals in 2026 offer 0% for up to 29 months.
Most balance transfer cards charge a transfer fee of 2 to 4 per cent of the amount moved. On a £3,000 balance, that is between £60 and £120, which is still far less than several months of interest at a high APR.
The golden rule is to clear your balance before the 0% period ends. Once it expires, the rate typically jumps to a standard APR, often above 20 per cent.
You cannot transfer a balance between two cards from the same banking group. For example, Halifax and Bank of Scotland are both part of Lloyds Banking Group, so a transfer between them would not be permitted.
How does a 0% balance transfer work?
You apply for a new credit card that offers a 0% promotional rate on balance transfers. If approved, you give the new card provider the details of your existing debt, and they pay it off on your behalf. Your debt is then owed to the new card provider, usually at 0% interest for the promotional period.
At the end of the 0% period, any remaining balance switches to the card's standard purchase or transfer APR. Providers such as Barclaycard, MBNA and Halifax regularly offer some of the longest 0% balance transfer periods in the UK market. Always compare the full range of cards using a tool such as MoneySuperMarket or MoneySavingExpert to find the best current offer for your credit profile.
What are the costs of a balance transfer?
Most 0% balance transfer cards charge a one-off transfer fee when you move your debt across. Typical fees are:
| Balance transfer fee | Example on £3,000 balance |
|---|---|
| 1% (lower end, shorter deals) | £30 |
| 2.5% (mid-range) | £75 |
| 3.5% (longer 0% period cards) | £105 |
| 4% (premium deals) | £120 |
Some cards offer a 0% fee for a limited period after account opening. Even with a fee, the saving against paying interest at 25 per cent APR for 12 months on a £3,000 balance (roughly £750 in interest) is substantial.
Should you choose the longest 0% period or the lowest fee?
The right choice depends on how much you owe and how quickly you can realistically repay it. If you can clear your debt within 12 months, a shorter deal with a lower or zero fee will likely cost you less overall. If you need 24 months or more, paying a slightly higher fee for a longer 0% window usually works out cheaper.
Divide your balance by the number of months in the 0% period to calculate the monthly payment needed to clear it in time. On a £3,000 balance with a 24-month deal, you would need to pay £125 per month.
What happens if you do not pay off the balance in time?
If any balance remains when the 0% period ends, the rate reverts to the card's standard APR, which could be 20 to 34 per cent. Some people choose to do another balance transfer at that point, though repeated applications for new credit can affect your credit score.
Set up a direct debit for at least the monthly minimum payment from the outset, so you never accidentally miss a payment. Missing a payment can cancel the 0% deal early on some cards, leaving you immediately subject to the full APR.
Can you consolidate multiple credit cards with a balance transfer?
Yes, and this is one of the main benefits of the process. If you have balances on multiple cards from different providers, you can often transfer them all to a single 0% card. This simplifies your repayments to a single monthly amount and removes the risk of losing track of different due dates and minimum payments.
Check each card's maximum transfer limit, as some cap the amount you can move across. The transfer limit is usually linked to your approved credit limit on the new card.
Should you keep or cancel your old credit cards?
Once your balance has transferred, do not use the old cards for new spending while you still have a balance to repay. The safest approach is to cut them up. Cancelling the accounts is optional; closing old accounts can reduce your available credit and temporarily affect your credit utilisation ratio, which may lower your credit score slightly. If you need to close them for discipline reasons, that is a reasonable choice, but you do not need to.
Frequently Asked Questions
How long does a balance transfer take?
Most balance transfers complete within 3 to 7 working days. Some providers are faster. Do not miss a payment on your old card during this period; continue paying until you receive written confirmation that the transfer is complete.
Will a balance transfer application affect my credit score?
Yes, applying for a new credit card involves a hard search on your credit file, which can temporarily reduce your score by a few points. Using an eligibility checker (a soft search) before applying lets you see your approval chances without affecting your score.
Can I do a balance transfer if I have bad credit?
The best 0% deals require a good credit history. If your credit score is poor, you may still be approved for a shorter deal or a card with a lower credit limit. If you are declined, avoid making multiple applications in quick succession. Consider whether a personal loan at a fixed rate might be a better option for consolidating your debt.
Is there a limit on how much I can transfer?
Yes. The amount you can transfer is limited by the credit limit the new card provider approves for you. This is assessed when you apply and is based on your income, credit history and existing commitments.
Can I spend on a balance transfer card?
You can, but it is usually unwise. Purchases on a balance transfer card typically attract a different, higher rate unless the card also offers a 0% purchase period. Spending on the card may also slow down your repayment of the transferred balance. Use a separate card for everyday spending while you clear your transferred debt.
What is the best balance transfer card in the UK right now?
Current market-leading offers change frequently. As of April 2026, cards from providers including Barclaycard, MBNA and Sainsbury's Bank have offered some of the longest 0% periods. Compare current deals on MoneySavingExpert or MoneySuperMarket using their eligibility checker before applying.