Last updated: 4 November 2026. General information, not financial advice. I don’t recommend specific cards.
If you’re paying interest on credit card debt every month, you’ve probably seen adverts for 0% balance transfer cards and wondered if one could help. Done well, a balance transfer can save you hundreds of pounds and help you clear debt faster. Done badly, it can leave you with two cards’ worth of debt and a big interest bill when the offer ends.
This guide explains how balance transfers work, how to work out whether the fee is worth paying, what happens to your credit score and how to make sure you clear the balance in time. It’s part of my debt and credit UK guide.
How a balance transfer works
- You apply for a new card with a 0% balance transfer offer, for a set number of months.
- If accepted, you ask the new provider to pay off some or all of your old card balance.
- That debt moves to the new card, usually with a transfer fee added (often a percentage of the amount moved).
- You pay no interest on the transferred amount during the 0% period, so every payment reduces the debt.
- When the offer ends, any balance left usually starts being charged at the card’s standard rate.
Important: you usually can’t transfer between cards from the same banking group, and you may need to make the transfer within a set time after opening the card (often 60 or 90 days) to get the offer.
Is the fee worth it? A simple way to work it out
Compare the fee with the interest you’d pay if you stayed put.
Illustrative example: you owe £3,000 at 24.9% APR and could transfer to an 18-month 0% card with a 3% fee.
- Transfer fee: £3,000 × 3% = £90
- To clear it in 18 months: £3,090 ÷ 18 = about £172 a month
- Staying put and paying £172 a month at 24.9% would take about 22 months and cost roughly £760 in interest.
So in this example the transfer saves around £670 (£760 interest minus the £90 fee), as long as you clear it within the 18 months.
Illustrative figures. Your fee, rate and offer length will differ: always check the summary box before applying.
Quick check before you apply
- Is the fee less than the interest you’d pay otherwise?
- Can you afford the monthly payment needed to clear it in time? ((balance + fee) ÷ months at 0%)
- Is the credit limit big enough for the amount you want to move?
- What’s the standard rate after the offer ends?
When a balance transfer can help
- You have credit card debt at a high interest rate
- You can be accepted (check with an eligibility checker first)
- You have a realistic plan to clear the balance before the 0% ends
- You’ll stop using the old card
When to avoid one
- You can’t afford more than the minimum. You may end up with debt left when the offer ends, and you’d be better speaking to a free debt adviser
- You know you’ll keep spending on the old card
- You’ve been turned down for credit recently. More applications mean more hard searches
- You’re about to apply for a mortgage. A new application and new account could affect your application, so speak to a broker first
- The fee is more than the interest you’d save
Does a balance transfer affect your credit score?
It can, in a few ways:
| What happens | Possible effect |
|---|---|
| You apply for the card | A hard search on your file, which can cause a small, temporary dip |
| You open a new account | Lowers the average age of your accounts |
| You get a new credit limit | Your total available credit rises, which can lower your credit utilisation and help |
| You pay the balance down steadily | Over time, a good record of payments and lower balances can help your file |
| You miss a payment | A late payment marker, and you may lose the 0% deal |
| You close the old card | Your available credit falls, which can raise utilisation |
So a balance transfer often causes a small dip at first, but can help over the longer term if you manage it well.
How to pay it off before the 0% ends
- Work out your monthly target: (balance + fee) ÷ number of months at 0%. Round it up.
- Set a Direct Debit for that fixed amount, not the minimum.
- Put the end date in your calendar, plus a reminder three months before.
- Stop spending on both cards. New purchases on a balance transfer card are often charged interest straight away, and repayments normally go to the balance with the highest interest rate first.
- Never miss a payment. It can end the offer early.
- Check your progress every few months and top up payments if you fall behind.
If you’re close to the end with money still owing, look at your options early. Another balance transfer may be possible, but it means another application and fee, so don’t rely on it.
Can you transfer a loan to a credit card?
Some cards offer money transfers, which pay money into your bank account that you can use to clear a loan or overdraft. These usually have higher fees than balance transfers and shorter 0% periods. Also check whether your loan has an early repayment charge. Work out the total cost before you switch.
Balance transfer vs other options
| Option | Good for | Watch out for |
|---|---|---|
| 0% balance transfer | Clearing card debt interest-free | Fees, deadline, needs good credit |
| Fixed higher payments on your current card | Anyone who can pay more | Still paying interest |
| Asking your provider for a lower rate | Long-standing customers or people struggling | Not guaranteed |
| Free debt advice and a payment plan | People who can’t keep up | Can affect your credit file |
See how to pay off a credit card faster for more on each.
Balance transfers: people also ask
Are 0% balance transfer cards worth it?
They can be, if the transfer fee is less than the interest you’d save and you clear the balance before the 0% period ends. They’re not a good idea if you’ll keep spending on the old card or can only afford the minimum.
Does a balance transfer hurt your credit score?
Applying causes a hard search, which can lead to a small, temporary dip. Over time, paying the debt down and having more available credit can help your score. Missing payments or applying for lots of cards will hurt it.
What happens when a 0% balance transfer ends?
Any balance left is usually charged at the card’s standard interest rate. Check your card’s summary box so you know the rate and end date, and aim to clear the balance before then.
How is a balance transfer fee worked out?
It’s usually a percentage of the amount you transfer, added to your new card balance. For example, a 3% fee on £2,000 would be £60.
Can I do a balance transfer to a card from the same bank?
Usually not. Most providers don’t allow transfers between cards in the same banking group. Check the terms before you apply.
Can I use a balance transfer card for shopping?
You can, but purchases may be charged interest straight away unless the card also has a 0% purchase offer. It’s simpler to keep the card just for the transferred debt.
Summary
- A 0% balance transfer moves card debt to a new card with no interest for a set time, usually for a fee.
- It’s worth it if the fee is less than the interest saved and you clear it before the offer ends.
- Expect a small dip in your score at first, with possible benefits later if you manage it well.
- Set a fixed payment, stop spending and never miss a payment.
Next step: read how to pay off a credit card faster, or go back to the debt and credit UK guide.
General information only, not financial advice. I don’t recommend specific cards or providers. If you’re struggling with debt, contact a free debt adviser such as National Debtline (0808 808 4000) or StepChange (0800 138 1111).
Sources (checked 4 November 2026): Official source for corrected claim · MoneyHelper: dealing with debt · Equifax: balance transfers · Experian: balance transfer cards
Read next: balance transfer calculator.