In this guide
If you have credit card debt, shifting it to a balance transfer card could be a good way to save money. Here’s our pick of the best balance transfer cards with the longest interest free terms.
Compared to other forms of borrowing, such as a loan, credit cards come with expensive rates of interest. It isn’t uncommon for some cards to charge over 20% in interest a year which means, if you’re carrying debt, you could face considerable interest charges.
So, one way to tackle your bills in a more cost-effective fashion is to use a 0% balance transfer card instead.
Below we outline the best 0% balance transfer deals and we explain:
- What is a balance transfer credit card?
- Should I apply for a 0% balance transfer card with a poor credit score?
- What alternatives are there to a balance transfer card?
- How to make sure I’m making the most of my balance transfer card
Read more: Best 0% purchase credit cards
What is a balance transfer credit card?
A 0% balance transfer credit card takes in debt from another credit card and charges no interest on it for a certain period. This means you’re now able to pay off your debt at a cheaper rate and it could enable you to clear it faster.
A key part of the process is that the 0% interest period isn’t indefinite, so once it comes to an end any outstanding debt will need to be serviced at a rate of interest. That’s why if you’re thinking of taking out one of these cards, it’s essential to have a repayment plan to ensure you’re making the most of the opportunity. We list what you can do in more detail below.
Also, when you’re looking for a balance transfer card you won’t be able to utilise any offers from your existing credit card’s provider. For example, if you’ve racked up debt on a Lloyds Bank credit card then you won’t be able to make use of a 0% balance transfer card from Halifax.
Read more: How to consolidate credit card debt
How does a 0% balance transfer card work?
Once you transfer over your debt to your new provider, they’ll need to settle your account with your previous lender. This means you no longer owe them any money. But, you will need to repay your new credit card provider.
The top balance transfer credit cards
Below are the 0% balance transfer cards with the longest interest free period:
This credit card is only available to Nationwide members – which is anyone with a current account, mortgage, or savings account with the provider. It’s a card which comes with added extras too, such as fee free spending abroad.
Representative Example: 24.9% APR variable. Based on assumed borrowing of £1,200. Rate of interest 24.9% p.a. (variable).
- Interest Free Period Balance Transfers: 90 days
- Balance Transfer Fee: 2.4%
- APR: 24.9%
- Account Fee: £0.00
Not only does this card offer one of the best balance transfer terms on the market, but it could be a great pick if you’re a frequent Tesco shopper. This is because it also offers Clubcard points, the superstore’s reward currency, on all your spending.
Use the card at Tesco and you’ll earn four points for every four pounds spent while spending elsewhere earns four points for every pound spent. Clubcard points work out to £1 cashback for every 100 points, so an £80 shop will earn you 0.80p cashback.
Representative Example: 24.9% APR variable. Based on assumed borrowing of £1,200. Rate of interest 24.9% p.a. (variable).
- Interest Free Period Balance Transfers: 90 days
- Balance Transfer Fee: 3.99%
- APR: 24.9%
- Account Fee: £0.00
TSB offers one of the lowest interest rates around, making it a great option if you believe paying interest altogether on your card is unavoidable.
Representative Example: 12.9% APR variable. Based on assumed borrowing of £1,200. Rate of interest 12.95% p.a. (variable).
- Interest Free Period Balance Transfers: 90 days
- Balance Transfer Fee: 5%
- APR: 12.9%
- Account Fee: £0.00
Like TSB, Lloyds Bank is one of the few providers which offers a 0% purchase and a 0% balance transfer period under a single card. This makes it a great choice if you’re shifting debt and you’re expected to spend money in the months ahead. However, a 5% balance transfer fee is one of the more expensive charges, so other cards could be better suited to you.
Representative Example: 24.9% APR variable. Based on assumed borrowing of £1,200. Rate of interest 24.94% p.a. (variable).
- Interest Free Period Balance Transfers: 90 days
- Balance Transfer Fee: 5%
- APR: 24.9%
- Account Fee: £0.00
M&S Bank – Purchase Plus Credit Card
If you’re a regular M&S shopper, then this card can be a great option. That’s because you’ll earn M&S points on all your spending, with one reward point earned per pound spent in M&S and one reward point earned per £5 spent elsewhere.
Once you earn 100 reward points you’ll receive a £1 M&S voucher, so compared to other rewards programmes it’s not the most generous.
- Interest Free Period Balance Transfers: 90 days
- Balance Transfer Fee: Not stated
- APR: 24.9%
- Account Fee: £0.00
Should I apply for a 0% balance transfer card with a poor credit score?
Some balance transfer cards are reserved for those with respectable credit scores. If you know that your own credit score isn’t up to standard, then don’t apply for any form of credit without doing your due diligence.
Use an eligibility checker, like the one on the Times Money Mentor website, to find out if you’re likely to be accepted for your chosen card. Our tool uses your credit score and a comprehensive list of credit cards to determine which ones you’d qualify for. It will only leave a soft search on your credit file, which is hidden from lenders, and won’t affect your score in any way.
Use the credit card eligibility tool
If you’ve already applied for a 0% balance transfer card and you’ve been rejected it’s important not to apply for a new card immediately. If you’re rejected again, it signals to potential lenders that you’re desperate for credit and it could bring your score down.
In the meantime, look at ways to give your credit score a boost. Our guide lists these in more detail.
Read more: How to improve my credit score
0% balance transfer cards not for you?
That’s okay, these cards aren’t meant to be for everyone. Plus, it’s best you look at all your options first before deciding to apply with one lender.
A great way to start your research is to use our free eligibility checker, which is powered by Creditec. Using whole of market data, it takes your basic information and credit history to find the best cards available for you.
What alternatives are there to a balance transfer card?
If you’re not eligible for a 0% balance transfer card, or if you’re not interested in this type of lending, there are other ways to manage your credit card debt.
If your debt is substantial, one option is to take out a debt consolidation loan. With this money you can then pay back your credit card debt in one go, but then you will need to pay back your loan provider.
Paying back a loan is also different to a credit card. You’ll need to adhere to a strict repayment plan and if you miss any of your payments then it’ll negatively impact your credit score.
But, the interest on your loan could be cheaper and your repayment plan can last over a longer period than the interest free term on a balance transfer card.
Read more: How to get debt help
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What to look out for in a balance transfer card
When comparing your balance transfer credit card options, make sure you consider:
- The balance transfer fee – While some credit card providers offer a 0% balance transfer period, they’ll charge a fee for transferring across your cash. Typically, this is around 3% or 4% of your balance. So if you’re transferring £1,000 of debt you’ll pay between £30 and £40. In an ideal scenario, look for a provider without a fee
- The 0% transfer period – A longer 0% balance transfer period gives you more time and flexibility for repaying your debt. Where possible, balance your need for a 0% transfer period and a fee to suit your needs when looking for a balance transfer credit card
- Interest rate at the end of the 0% transfer period – If you’re planning on using your card after the 0% transfer period ends – with or without debt – consider the interest rate you’ll be charged. It isn’t the most significant factor because it could change during the 0% balance transfer term. However, it could be good to compare it against other options.
Some providers offer a 0% purchase period and a 0% balance transfer period on the same card. This can make it tempting to spend more money, but bear in mind that this will only accrue more debt and increase your monthly repayments.
Read more: The best credit cards for those with poor credit
How to make sure I’m making the most of my balance transfer card
Switching to an interest free balance-transfer card with no fee will provide some breathing space to manage your debt. But it’s crucial to use that time wisely.
If that interest-free period is 24 months, for instance, and the debt is £3,600, paying £150 a month towards whittling the debt down will clear it before interest charges kick in.
However, that only works for those who don’t use the card for new purchases during the interest-free period.
Failing to clear the debt can lead to a cycle where a new balance-transfer deal will need to be found at the end of the term, and so on.
It’s also a great idea to transfer all your debt in one go, so you can make full use of the 0% balance transfer period.
Some cards require you to transfer your debt within a certain time frame to qualify for the 0% balance transfer term. This means if you’ve accrued debt towards the end of your period, you can’t just shift it across to your card to make your repayments easier.
Important information
Some of the products promoted are from our affiliate partners from whom we receive compensation. While we aim to feature some of the best products available, we cannot review every product on the market.
