What is a balance transfer credit card?

A balance transfer credit card is like hitting the reset button on your interest-accruing debt. You move what you owe from one or more cards onto a new one, usually with a sweet 0% interest deal on the transferred debt. That way, you’re not drowning in interest and can clear your credit card balance more quickly.

Moving your existing credit card balance to a 0% deal means more of your money goes toward clearing the actual debt. It can make a big difference if you're juggling expensive repayments. Just be aware that most cards charge a transfer fee – usually a percentage of the amount you're moving.

These low or 0% rates don’t last forever, though. Once the deal ends, you’ll start paying interest again – often at a much higher rate. So it's worth setting a plan (and a reminder) to clear the balance before the intro offer runs out.

Are you eligible for a balance transfer credit card?

Thinking about a balance transfer credit card? It helps to know what UK lenders usually expect before you apply. While each provider has its own rules, most look for similar things:

  • Age and residency: You need to be at least 18 and living in the UK.

  • Income: A steady income shows you can handle repayments.

  • Bank account: You’ll need a UK bank account to manage payments easily. Some card issuers prefer you already bank with them but it’s not always essential.

  • Credit history: A decent credit record is beneficial. Lenders want to see you manage credit responsibly, so recent issues like CCJs or bankruptcy might hold you back. If you have poor credit or you are new to credit, a credit card for bad credit could help.

  • Minimal recent credit applications: Too many credit applications in a short period can make lenders wary, so be mindful of how often you apply.

Every lender has its own specific criteria, so it’s a good idea to check what the provider requires before you apply to avoid unnecessary knocks on your credit file.

How do balance transfer credit cards work?

Balance transfer credit cards are a handy way to move what you owe from one or more existing credit cards onto a new one. Usually there’s a 0% interest period to help you clear your debt faster.

Here’s how the process works:

Applying can be quick and simple

You’ll need to provide details like your income, spending habits and employment status. Lenders will also look at your credit score to decide whether to offer you the card and what balance transfer limit and interest-free period you might get. Some providers even offer an eligibility checker so you can see your chances of being accepted before applying.

Once approved, you’re in control

You’ll get your new card and can then request the balance transfers – either during the application or usually up to 60-90 days afterwards. Just keep in mind there’s often a transfer fee (typically 2–4% of the amount moved), so factor that in when weighing up your options.

Repayments help you chip away at debt

You’ll need to make at least the minimum payment each month, but paying more means you’ll clear the balance quicker – ideally before the 0% period ends. After that, the interest rate jumps up, so try to stick to a plan. Setting up a direct debit can help you stay on track and protect your credit score.

How much can I transfer with a balance transfer credit card?

The amount you can shift onto a balance transfer credit card varies depending on your personal circumstances. For example, one leading provider requires a minimum transfer of £100, with a maximum of up to 95% of your credit limit. What you’re offered will depend on things like your income, credit score and how much debt you already have.

Here’s what lenders usually look at before deciding your limit:

  • Your income: They’ll want to see that you have a stable source of income to manage repayments.

  • Your credit history: A good score can improve your chances of getting a higher limit and a longer 0% period.

  • Your existing financial commitments: Things like loans or other credit cards can impact how much you're offered.

Some providers have eligibility checkers so you can see what you might get – with no impact on your credit score. And remember: if you can’t transfer the full balance then don’t worry. Transferring part of your balance to a 0% deal could still help you save a lot in interest. However, you’d have more than one card to manage, so it’s important to stay on top of the monthly payments.

What happens if I don’t pay off the balance before the 0% deal ends?

If you don’t clear your balance before the 0% introductory period ends, the remaining amount will start racking up interest.

It’s a good idea to set a reminder a few months before your 0% period finishes. That way, you can either pay off what’s left or look into switching to another deal if you need more time. Just make sure you factor in any new transfer fees and check your eligibility again.

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Page updated on 11th September 2025, Reviewed by Richard Groom