Best Buys:
In this guide
This is to cut existing debt costs. For cheap NEW borrowing, see 0% Credit Cards
Shifting existing credit card or store card debts to a new balance transfer card can save you �100s or �1,000s. A balance transfer's when one credit card repays debts on other credit or store cards, so you now owe it the money instead, hopefully at a special cheap rate.
For example:
- Current debts: Louiscard �3,000 at 18%, Cherylcard �1,000 at 16%.
- New credit: The Danniicard's 0% for 12 months on balance transfers.
- What happens: Ask the Danniicard to balance transfer the debts. It then pays �3,000 to the Louiscard and �1,000 to the Cherylcard.
- New situation: The Louis and Cherylcards are debt-free, as the debt has been transferred to the Danniicard; to which you now owe �4,000 at 0%.
The five balance transfer need-to-knows
Aim to clear debt before the 0% or cheap rate ends, or else the cost rockets
Cheap balance transfer deals are designed to make lenders money when you fail to pay them off before the low rate ends, or forget to switch the debt again to another card. That's because at that point, the interest rate jumps massively, to a standard 15%-20% APR.
Your aim should always be to clear the amount you transferred over in the cheap period, minimising the interest. If that's not possible, next best is to shift again before the intro deal comes to an end - or even back to the original card you shifted the debt from, if that's cheaper than the go-to rate on the balance transfer card.
To see the cost of paying off different cards over varying time periods, use our Which Card Is Cheapest? calculator.
Always repay AT LEAST the monthly minimum, or you may lose 0% deals
Just because you've grabbed a 0% deal, that DOESN'T mean you can get away with paying nothing. You must keep up with monthly payments of at least the minimum amount, or some card providers will snatch back the deal, and leave you on an expensive rate.
Of course, your aim should be to pay more than the minimum - unless you've pricey debts elsewhere, in which case focus max repayments on them. Minimum payments are designed to make debts last as long as possible - see tips to beat this in Danger: Minimum Repayments.
Don't spend on cheap balance transfer cards. It's not usually at a cheap rate
Credit cards let you do a number of different things such as spend, shift balances or withdraw cash. Banks must now put any repayments towards the most expensive debts first. This means spending on a balance transfer card isn't as bad it was before the rules changed in 2011, but it can still cost you if you're not careful.
Spend on a 0% balance transfer card and any repayments will go towards the spending first. To avoid interest, you'll have to repay the full amount you spend each month. This could get complex, so if you need to make new purchases, it's best to get a separate 0% Spending Card.
You can cut your interest WITHOUT new cards
Most top balance transfer deals are for new cardholders, and require the debt to be shifted within a couple of months of opening the card account for a fee of around 3%.
Yet if you have other credit cards open, speaking to the provider can save you applying for a new one. Ask if it has any special balance transfer deals for existing customers. If it does and it's cheap, you could shift debt there instead, or even to complement a new 0% deal elsewhere.
Full details in the Credit Card Shuffle guide.
Every credit card requires you to pass a credit score
Lenders use credit scoring to decide whether to loan out money - this is a combination of checking your credit reference file, looking at your history with that company, and some of your history with other lenders.
Credit scoring doesn't just dictate what products you'll receive, but also how good the ones you actually get are. For example, most loan rates are representative , meaning the APR depends on your credit score.
So with credit cards, if your score's too low for the sexy deal you wanted, you might get accepted but not get the headline offer that you applied for.
Best buys: Top 0% balance transfers
Picking the right 0% balance transfer for you isn't as simple as just going for the longest, or the lowest fee, as there are now so many variants out there. A good rough rule of thumb is...
Get the lowest fee within the 0% time you're CERTAIN you can clear the card
0% deals are currently at their longest ever, though the longer they are, the higher the fee. At the other extreme, you can get a 12-month 0% card with NO FEE.
Yet a lower one-off fee can be trivial compared to interest if you don't clear the card or shift again before the 0% ends. Even a 2% lower fee only saves �20 per �1,000 - that'd be eaten up by interest in 6 weeks of paying the full APR on �1,000. So if unsure, go long. To help you pick, we built the Which Card Is Cheapest? calculator.
All cards require a credit score. Use our Eligibility Checker to see if it's likely you'll get one
Most cards in this guide have two links - one directly to the card, the other to a tool we've designed to help you check if you might be eligible for the card. We do a 'soft' credit search which YOU can see, but lenders CAN'T, so it has no impact on your future creditworthiness.
We map the details you give us against lenders' criteria, and show your chances both for the specific card that you've followed the link from, and for the other top picks on this page.
Missed payments or been rejected? There ARE cards which may accept you
0% deals used to be the preserve of those with a sparkling credit history. While for the top cards this can still be true (our Eligibility Checker will help cut through the fog), some specialist cards are aimed at those with chequered pasts.
If you've missed payments, or even had some CCJs or defaults, you now aren't frozen out of the balance transfer market. If this sounds like you, try reading Credit Cards for Bad Credit.
You may get the card but not get the headline deal
Many credit card lenders use 'representative' offers. By law, the offer they advertise has to be given to at least 51% of people who are accepted for the card. The rest can be accepted and given a higher APR - and with balance transfer credit cards, often a shorter length of time at the 0% rate.
You might not get the advertised headline rate if you've less than perfect credit.
The LONGEST 0% deals
All these deals require you to pay a sizeable one-off fee when you do the transfer. The trade-off is you get it interest-free for longer. Always make at least the min repayments each month.
Barclaycard* - 27 months, 2.98% feeLongest 0% deal EVER, now with lower fee
- Balance transfer length & fee: 27 mths 0%, 2.98% fee
- Rep variable APR: 18.9% (Official APR Example)
- Card issuer: Visa
- Min repayment: Greater of 1% of balance plus interest, 2.25% of balance or �5
- Any restrictions? Must transfer within 60 days
- Min income: �20,000
The Barclaycard Platinum* card has the longest 0% period we've EVER seen. Until Fri 28 Jun, the fee's reduced from 3.9% to 2.98%. However, this is still higher than the cards below, so consider whether you need the full 27 months to pay it off.
The fee is charged a little oddly. Initially 3.9% is taken, then the difference is credited back within two working days. You can't transfer debt from other Barclaycards to it, so if that hits you, see the non-Barclaycard alternatives.
Pay off in full before the 0% period ends or you'll start being charged 18.9% representative APR on the remaining balance. Depending on your credit rating, you may be given 12 months 0% instead of 27 months, and face a higher APR of 24.9% or 29.9%.
NatWest/RBS* - 0% for 26 mths, 2.65% feeSecond longest 0% balance transfer deal
- Balance transfer length & fee: 26 months 0%, 2.65% fee
- Rep variable APR: 18.9% (Official Rate Example)
- Card issuer: Mastercard
- Min repayment : Greater of 1% of balance plus interest, or �5
- Any restrictions? Must transfer within 3 months
- Min income: �10,000
The NatWest* / RBS* Platinum (you can use our pre-application eligibility check for these cards: NatWest, RBS) has a low balance transfer fee, and for most will beat the Barclaycard above, even with a month less at 0%.
You can't transfer from other NatWest or RBS cards so if that's what you need, try one of the other options. Ensure you've repaid in full by the end of the 0% period or you'll pay 18.9% representative APR on any balance left on the card.
Halifax* - 0% for 25 months, 2% feeBut some may get 21, 18 or 15 months
- Balance transfer length & fee: 25 mths 0%, 2% fee
- Rep variable APR: 18.9% (Official Rate Example)
- Card issuer: Mastercard
- Min repayment : Greater of 1% of balance plus interest, or �5
- Any restrictions? Must transfer within 90 days
- Min income: N/A
The Halifax* Balance Transfer card is 0% for 25 months (you can use our pre-application eligibility checker for this card) on shifted debts, with a 2% fee when you transfer within 90 days.
However, the 25-month transfer period will only be given to a minimum of 51% of customers. Some others applying for the card will get 21 or 18 months 0% and face an APR of 21.9%, while some will get 15 months 0% with a 25.9% APR.
The fee is also charged a little oddly. This is a limited time fee rebate, so you will be charged 3% initially, and the difference will be credited back within 60 days.
You can't transfer from other Halifax cards so if that's what you need, try another option. The rate after jumps to 18.9% representative APR, so repay in full by then or switch to another 0% deal. See the Which Card Is Cheapest? tool for how the top options compare.
Tweet | http://mse.me/btcards |
Other long-term balance transfer cards if you have those above | ||||||||
---|---|---|---|---|---|---|---|---|
Card |
0% length |
BT fee |
Representative
variable APR after |
Notes |
||||
Barclaycard* |
26 mths
|
2.47%
|
18.9%
|
-
|
||||
Virgin Money* |
26 mths
|
2.99%
|
18.9%
|
You can use our pre-application eligibility checker for this card
|
||||
Tesco* |
25 mths
|
2.9%
|
18.9%
|
-
|
||||
MBNA |
24 mths
|
2.85%
|
18.9%
|
-
|
||||
Fluid* |
24 mths
|
2.89%
|
18.9%
|
You can use our pre-application eligibility checker for this card |
||||
See all Official APR Examples |
FEE-FREE 0% deals
One card charges NO FEE to balance transfer onto it. However, the 0% period is a relatively short 12 months, so if you won't pay it off by then, pick a card with a longer 0% and take the hit of paying a balance transfer fee.
Tesco* - 12 months 0%, NO FEE12 months 0% on balance transfers & purchases
- Balance transfer length & fee: 12 mths 0%, NO FEE
- Rep variable APR: 18.3-24.2% (APR Example)
- Card issuer: Mastercard
- Min repayment : Greater of 1% of balance plus interest or �25
- Any restrictions? Not for exisiting cardholders
- Min income: �5,000
If you can repay pretty quick, the unique Tesco* Clubcard credit card is fantastic. It doesn't charge a balance transfer fee, so you can clear debt totally FREE.
Make sure you can pay your debts off in a year, or be ready to switch again, as the card has a representative APR on balance transfers of between 18.3% and 24.2% - which APR you get will depend on how good your credit rating is.
It also offers 0% on purchases for a 12-month period - see how this compares in Best 0% Cards. You can't get it if you already have a Tesco credit card, or if you've applied for one in the past six months.
Low-fee 0% balance transfers
If you can clear your debts more quickly than the 0% periods above, it's possible to slash the fee you pay, cutting the overall cost of paying off your debts. We've listed in order of 0% length - pick the one that allows the lowest fee and the most realistic timeframe for you to pay it off.
Lloyds TSB* - 21 months 0%, 1.5% feeLongest lower-fee transfer card
- Balance transfer length & fee: 21 mths 0%, 1.5% fee
- Rep variable APR: 17.9% (Official APR Example)
- Card issuer: Mastercard
- Min repayment: Greater of 1% of balance plus interest or �5
- Any restrictions? Must transfer within 90 days
- Min income: N/A
The Lloyds TSB* Platinum credit card (you can use our pre-application eligibility checker for this card) offers up to 21 months 0% on transfers - it's the longest lower-fee card on the market. But some applicants will get 18 or 13 months.
When you make the balance transfer, a fee of 3% is charged, then Lloyds will refund half the fee back to your card account within 60 days. To qualify for the rebate, you need to do a balance transfer of �100 or more within 90 days of getting the card.
The rate after the 0% ends jumps to either 17.9% (at least 51% of accepted customers will get this rate), 21.9% or 25.9% representative APR, depending on your credit score. Ensure you've repaid in full by then, or switch to another 0% deal.
Barclaycard Platinum* - 0% for 16 mths, 1.28% feeLowest fee BT card
- Balance transfer length & fee: 16 months 0%, 1.28% fee
- Rep variable APR: 18.9% (Official rate Example)
- Card issuer: Visa
- Min repayment : Greater of 1% of balance plus interest, 2.25% of balance or �5
- Any restrictions? Must transfer within 60 days
- Min income: �20,000
The Barclaycard* Platinum is 0% for 16 months on shifted debts, with a 1.28% fee until Fri 28 Jun, when you transfer within 60 days.
The way the fee works is a bit tricky. You initially pay 1.5% of the amount transferred, you'll then receive a refund which be the difference between 1.5% and 1.28%. This should be credited to your account within 28 days.
You can't transfer from other Barclaycards to this one. So if that's what you need, try one of the other options. The rate after jumps to 18.9% representative APR.
Lloyds TSB* - 15 months 0%, 1% feeLowest fee for long-term transfers
- Balance transfer length & fee: 15 mths 0%, 1% fee
- Rep variable APR: 17.9% (Official APR Example)
- Card issuer: Mastercard
- Min repayment: Greater of 1% of balance plus interest or �5
- Any restrictions? Must transfer within 90 days
- Min income: N/A
The Lloyds TSB* Platinum credit card (you can use our pre-application eligibility checker for this card) has the joint-lowest balance transfer fee currently on the market - excellent if you know you can definitely pay off within the time.
When you make the balance transfer, a fee of 3% is charged, then Lloyds will refund two-thirds of the fee back to your card account within 60 days. To qualify for the rebate, you need to do a balance transfer of �100 or more within 90 days of getting the card.
The rate after the 0% ends jumps to either 17.9% (at least 51% of accepted customers will get this rate), 21.9% or 25.9% representative APR, depending on your credit score. Ensure you've repaid in full by then, or switch to another 0% deal.
Halifax* - 15mths 0%, 1% feeAlso has up to 15 months 0% on spending.
- BT and spending length & fee: 15 mths 0% (with 1% fee)
- Representative variable APR: 17.9% (Official APR Example)
- Card issuer: Mastercard
- Min income: N/A
- Min repay : Greater of 1% of balance plus interest or �5
The Halifax* All in One card (you can use our pre-application eligibility checker for this card) also has the current lowest balance transfer fee, though differs from the Lloyds card in that you might get accepted for a lower number of months at 0%.
If you apply for this card before Tue 25 Jun and are accepted, the transfer fee is 1% provided you make the transfer by that day. Initially you'll be charged 3% when you make the transfer, but two-thirds of this will be refunded within 30 days.
The promotional 15 months 0% will be given to "at least" 51% of those accepted. The rest will either get 13 or 11 months 0%. This might be an advantage in that it accepts applicants who might be rejected for other cards, but could also be an annoyance if you were relying on getting 15 months.
The rate after is 17.9% representative APR for both purchases and BTs. If you don't get the 15 month deal it'll be 21.9% or 25.9%. So make sure you've paid it off, or you're ready to shift the debt to a new card.
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Best buys: Cheapest long-term deals
This route can be simpler - get a card, shift your debts, then put the card away and pay it off, knowing it's cheap. Some people could be better off going for a stable relationship like this rather than trying to be a credit card tart, as only a few mistakes can make tarting costly.
However, with the huge length of the 0% deals we're seeing, and decreasing personal loan rates, here are the two big things to consider.
0% cards can be cheaper than long-term deals
The current top 0% deals are huge. Switch debt to the top 0% card and even if you end up on the APR, if you can't repay in full or switch again (though you should always aim to), it can still beat the best long term deals, if you don't do any extra spending on it. To help find the cheapest route, use the Which Card Is Cheapest? calculator.
The exception is if you get a higher APR - 49% of people could get a rate higher than the representative APR advertised - particularly if your credit rating's a bit shabby. If so, 'life of balance' deals - where the rate advertised is the rate all accepted customers get - become better much sooner.
If you prefer fixed repayments, try a proper personal loan
Long-term, low rate plastic can beat personal loans, as they allow the flexibility of paying off more when you can afford it. However, you must be disciplined for this to work - if you're less organised, look at the top Cheap Loans.
If you're still after a long-term low rate card, the gold standard is a 'life-of-balance' transfer deal; here, the cheap rate is guaranteed to last until the debt you've shifted is repaid in full. The MBNA Rate for Life card has a fixed APR, but the others are all variable.
Long-term low rate, with 1.5% feeMBNA Rate for Life
- Promo rate and fee: 5.9% APR, 1.5% fee (first 60 days, 5% fee after)
- Rep variable APR: 18.9% official example
- Card issuer: Visa
- Min repayment: Greater of 1% of balance plus interest, or �25
- Any restrictions? Need good credit score
- Min income: N/A
If you know it's going to take you longer than 27 months to pay your debts off, then it's likely to be worth going for a 'life-of-balance' card. These aren't 0% deals, but are low rate, and the lowest rate is on the MBNA Rate for Life card.
If you can repay quickly, 0% wins. But if you need longer, 'life of balance' deals lock in the cheap rate until all the transferred debt is repaid.
Is the rate fixed? Yes. It's fixed at 5.9% APR, so provided you get the card, you'll get that rate. However, other types of debt, such as spending, are charged at much higher APRs.
Especially if you're moving large balances, watch out for the fee as this will be added to your starting balance. But after doing the maths, it will still work out as the cheapest long-term option. See Which card is cheapest? for how the top options compare.
Sainsbury's*Higher rate but no fees to transfer
- Promo rate and fee: 7.8% APR variable, NO FEE (see official rate example)
- Min income: N/A
- Card issuer: Mastercard
- Min repayment : Greater of 1% of balance plus interest, 2.25% of balance or �5
A higher rate's available from Sainsbury's* with a low representative APR on debt shifted to it, with no fee (you can use our pre-application eligibility checker for this card). The card also offers cashback on spending.
There's also a Sainsbury's Nectar* card with the same APR. If you use it for spending too (it's at the same APR), you get Nectar points.
Unfortunately, like all credit cards, these two cards have a representative rate. While 51% of accepted applicants will get 7.8%, some slightly poorer credit scorers will be given higher rates of 9.9% or 11.9% APR - and that can hit the cost severely.
Is the rate fixed? No. While the card is variable rate, credit card regulations mean it's not allowed to increase it within the first year. After that, as long as you agree not to borrow more (which you shouldn't be doing on this card anyway), you have a right to reject any rise. See the Rate Jacking guide for the full rules.
Alternative long-term card, fee-free*Barclaycard Platinum, but only for 15 months
- Promo rate and fee: 2.9% APR, NO FEE (see official rate example)
- Min income: �20,000
- Card issuer: Visa
- Min repayment : Greater of 1% of balance plus interest, 2.25% or �5
Many credit card providers won't let you shift debts between their own cards - so if you need an alternative to Sainsbury's or MBNA, Barclaycard Platinum* offers a low representative APR on balance transfers for 15 months.
Barclaycard says the offer's dependent on your individual circumstances, so there's a chance you'll be offered fewer months at 2.9%.
Is the rate fixed? While the card is variable rate, credit card regulations mean it's not allowed to increase within the first year. After that, as long as you agree not to borrow more, you have a right to reject any rise (see the Rate Jacking guide for full rules).
After the 15 months ends, you'll be charged interest of 18.9% representative APR on any balance left over. Some poorer credit scorers will get 24.9% or 29.9% APRs. There's no fee for making balance transfers to the card.
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Best buys: For poorer credit scorers
The Fluid card from MBNA and the Platinum card from Barclaycard accept those with average credit, though recent CCJs and defaults will rule you out.
Fluid card* - 0% for 15 months with low feeDesigned for people rebuilding their credit, without recent credit problems
- Balance transfer length & fee: 15 mths 0%, 1.5% fee
- Rep variable APR: 18.9% (Official APR Example)
- Card issuer: Visa
- Min repayment : Greater of 1% of balance plus interest, or �25
- Any restrictions? Must transfer within 60 days
- Min income: �4,000
If you've not got tip-top credit scores, then you may not be accepted for any of the cards above. The Fluid* credit card (you can use our pre-application eligibility checker for this card)is designed for people rebuilding their credit or with little credit history..
While not aimed at people with serious credit problems, there's a pre-application service for this card (as well as our MSE eligibility checker), giving a further indication of your chance of being accepted (or not) for the 0% without marking your credit file.
The card is provided by MBNA, but you can be accepted for this if you already have an MBNA card. However, you can't transfer a balance from an MBNA/Virgin card to Fluid.
Try to pay the debt off before the 0% ends, else the rate jumps to 18.9% representative APR. See the Which card is cheapest? tool for how the top options compare.
Barclaycard Platinum* - 18 mths 0%Designed for people rebuilding their credit
- Balance transfer length & fee: 18 mths 0%, 2.47% fee
- Rep variable APR: 24.9% (Official APR Example)
- Card issuer: Visa
- Min repayment: Greater of 1% of balance plus interest, 2.25% of balance or �5
- Any restrictions? Must transfer within 60 days
- Min income: N/A
If your credit history is not the best, or there's not much of it, then you may not be accepted for any of the cards above. The Barclaycard Platinum* credit card is designed for people like you and has a reduced fee of 2.47% until Fri 28 Jun (it's usually 2.9%).
If you have old credit problems, and have used higher APR credit cards to build your credit, and managed them well, this card is aimed at being a further step towards the prime credit card market.
This card isn't aimed at people with serious credit problems, and won't accept recent CCJs (these must be five years old or more) or defaults. If this is your situation, see our Credit Cards For Poorer Credit guide.
You aren't able to transfer balances from other Barclaycards, so if you need to do this, try the Fluid card above.
When the 0% ends, the rate jumps to a high 24.9% representative APR, so aim to pay off the balance before the 0% ends, or be ready to switch your balance again. Some accepted applicants with slightly poorer credit scores could get an APR of up to 29.9%.
Still concerned? Try other creditworthiness comparisons
Comparison site MoneySupermarket* does personalised credit card searches. It asks a few quick questions to assess your creditworthiness, then tries to match you up with the best card. This uses 'soft searches' of your credit file, like the MSE Eligibility Checker. Importantly, these don't leave a mark on your file (hence they won't hit future applications).
A similar but far less wide-ranging service is offered by Check My File. Plus it's worth taking a look at our quick Credit Checker. These are a bit rough and ready, so shouldn't be relied upon fully, but can give a decent indication of the cards you may get without doing a proper credit search.
These services are useful, but don't cover all cards. So they should only be used if you think you may have credit issues. It's also worth noting the comparisons are basic and exclude many issues; so always double-check it's the correct product for you, following the logic in this guide before applying for a card.
Get cheaper debts without new credit
This could be a really strong tip if you are struggling to be accepted. It's possible to play the system and get much cheaper debt by utilising existing customer balance transfer deals to more efficiently use your existing credit.
For full details on how to do this, read the Credit Card Shuffle guide.
Calculator: Which card is cheapest?
Choosing your balance transfer weapon's more complicated than it used to be. Grabbing a super-long 0% deal and letting it lapse to the APR can now beat the long-term cheap rates for repayment lengths of around three years or more.
The aim should still always be to repay within the interest-free time, or switch after that to another 0% deal if you haven't repaid. However, if you can't, don't automatically jump for a long-term deal, as it may not be cheapest.
This calculator reveals the cheapest of our top picks, based on your debt and repayment amount.
What's the cheapest card?
- Repayments are fixed: If they'll be inconsistent play safe and pick the minimum you'll repay in any month
- No spending: As this isn't usually at the 0% rate (so avoid)
- Representative APRs: After the 0% ends we use the rep APR, yet only 51% of people get it
- Not all cards are included
It's important to note all the APRs used in the calculator (except 0% and long-term special offers) are representative, so only 51% of accepted applicants must get them - the other 49% are likely to pay more. If you're in that bunch, you should seriously look at switching again once the deal ends.
Simple reminders for card tarts!
Enter the date your 0% (or other intro rate) expires in the Tart Alert Tool and you'll be sent a text or e-mail reminder to ditch and switch. Of course, like everything else on this site, it's completely free.Try it now →
Think before adding the 'insurance'
Payment protection insurance is commonly sold with credit cards. The idea is it'll make some payments for you, usually for a year, if you are unable to (if you lost your job, for example).
There have been countless cases where it was mis-sold, where borrowers didn't realise they were signing up for it, or it was totally unsuitable for them. Some big lenders have been fined.
The protection isn't always bad. But policies sold with cards are often overpriced (you pay a monthly amount depending on the size of your balance). If you want it, compare the lender's cover with standalone providers such as Paymentcare or Best Insurance.
Always be vigilant to check you aren't getting more than you bargained for when you fill in the application, then check your statement each month to check you aren't inadvertently paying for extras if you didn't ask for them.
Balance transfers: Q&A; with Martin Lewis
Filmed on 26 May 2011
Balance transfer Q&A;
There are a range of variables to take into account when choosing a balance transfer card:
Q. How do I go about doing a balance transfer?
A. When you apply for the new card, it will usually include a 'do you want to transfer debts from other cards?' section. In this, you just put in the details of the other cards; and if you're successful getting the new card, it will pay them off.
Even if you don't do it at initial application, most cards normally allow you to do a transfer within a set period of getting the card (usually 30-90 days). All you need to do is call up and send the details of your other cards.
Q. Does a lower interest rate mean I pay less each month?
A. No. These are totally separate things. Unlike loans, with credit cards you choose how much you repay each month, though every card has a set minimum monthly repayment. The interest rate is the cost of the debt. For example, a rate of 20% on �1,000 means it costs you �200 per year (see the Interest Rates guide for more).
This does mean in some circumstances you may shift debt to a new cheaper card, but if it has a higher minimum, you'll need to pay more each month. If that may be unaffordable, ensure you check the minimum repayments before switching.
Q. How much should I pay off each month?
A. As much as you can - even 0% debt is still debt. The more you repay, the faster the debt disappears. Especially important is that you try to pay more than the set minimum. For more on that and tips on how to do it, read the Minimum Repayments: Danger! guide.
Q. If a lower interest rate doesn't mean I pay less, why bother?
A. The cheaper the interest rate, the more of your repayment goes towards clearing what you owe rather than servicing the interest. This means you'll be debt-free more quickly and will have to pay less in total to do it.
Q. What if the credit limit I get isn't high enough?
A. Move what you can, then if needed, simply apply for another provider's card and move the rest there. Don't leave it unused, it's already on your credit file so you may as well use it. Read the Credit Card Limit: Didn't get what you wanted? guide.
Q. Should I cancel old cards?
A. If you've regularly used cards to balance transfer in the past, it's likely you'll have held cards from many of the top pick providers in this guide. Each has its own rules, but many card providers will automatically reject you if you already have one of their products, or had one in the past 12 to 18 months.
To help, where possible we've listed alternative cards, in case you aren't eligible for the top picks. To improve your chances of getting the best deal, cancel any cards you have open but don't need. Read more in the Should I Cancel Old Cards? guide.
Q. How many times can I do balance transfers?
A. As many times as you like. You can balance transfer from card, to card, to card. The only limiting factor is whether your credit score is high enough to be accepted for new cards.
Q. At what point during tarting should I apply for a new card?
A. The best time to apply is roughly six weeks before your current 0% deal ends. This gives you enough time to apply, find out if you've got the card, and shift the debt, while your other card is still at 0%. Use the Tart Alert to remind you when.
Q. Will card tarting hurt my credit score?
A. Multiple applications, especially close together, and high outstanding debts, even at 0%, diminish your ability to get competitive credit. The most important preventative measure is to spread card applications out.
Do this and most people with reasonable income and no missed payments should be able to tart without worry, though occasionally some get scored out. Read the Credit Ratings guide.
Q. What if my card's got a cheap spending deal?
A. The basic answer is to always err on the side of caution. However, if a card has a 0% deal for purchases and balance transfers that lasts exactly the same length of time, then it's fine to spend on. However if they're not identical, eg, 0% for purchases for 3 months and 0% on balance transfers for a year, it's best not to do it.
Q. Is the balance transfer fee interest-free as well?
A. This depends on the specific card, and it varies. Sometimes you will pay interest on the fee, yet it's arranged so your first monthly repayment pays all of it off, so the interest is negligible.
Q. Which cards give the best limits?
A. This is almost impossible to answer - you're credit scored depending on that lender's wish-list for a profitable customer. So it all depends on how well you fit what it wants. In general, though, Barclaycard has a reputation for lower credit limits and MBNA higher limits.
Q. Why did it reject me? I've got a great credit score!
A. Lenders choose on their wish-list for profitable customers - it's not all about risk. Read the Credit Scoring guide for a full explanation. Of course, you should check for errors on your credit file, but hard and fast reasons are difficult to come by. It may be as bizarre as a lender choosing to give credit cards to customers it's more likely to be able to flog a mortgage to.
Q. Why did it give me a different card to the one I applied for?
A. Some cards operate a rate for risk policy.
Q. Any other things I should look for when picking a 0% card?
A. If you want to get a little advanced, it's worth considering whether the card offers existing customer balance transfer deals (as explained in the Credit Card Shuffle guide). This is a useful option for long-term tarts, as it offsets the risk of being rejected due to a poor credit score.
The best picks for this are as follows:
- MBNA card range: While most of these cards have a balance transfer fee, MBNA tends to repeatedly offer good deals to existing customers, often at 0%, though you need to call and ask. If you're adopting this strategy, it may be worth taking the hit of a fee to keep this facility open. Main cards are MBNA and Virgin.
- Barclaycard. Barclaycard allows existing customers to shift debts to it at 7.9% life of balance (until all the debt is repaid), thus giving you a back-up option of long-term cheap debt if necessary. Or you can transfer to existing credit cards, as sometimes there are hidden offers for cheap rates. For more info, see the Credit Card Shuffle guide.
Q. My question hasn't been answered yet, what should I do?
A. If it's a general question about how balance transfers work, then please ask it here and we'll endeavour to include it in the guide. If it's a specific question about your situation or a product, then please use the question/discussion link which will take you to the forum. There, you can chat about it with other MoneySavers.
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