What is a Balance Transfer Credit Card?

A balance transfer credit card allows you to move existing credit card balances from one card to another. This process is known as transferring your balance.
Many balance transfer cards offer a temporary 0% interest period, which means you won’t pay interest on the transferred amount during that time. Instead of paying high interest on your existing card, your repayments go directly toward paying off your debts.
You’ll still need to make at least the minimum payments each month and repay as much of the balance as possible before the interest-free period ends.
Some providers charge a fee for transferring balances, but you may also find a balance transfer credit card with no fee or a no-charge balance transfer card offer.

What’s the Difference Between Promotional and Standard Interest Rates?

When comparing balance transfer credit cards, it’s important to understand the difference between the promotional rate and the standard rate. Knowing how these work can help you avoid unexpected interest charges later on.

Promotional interest rates

These are the introductory rates offered when you first open the card. Many balance transfer cards offer a 0% interest period, which allows you to focus on paying off your debts rather than covering interest charges. During this period, your repayments go directly toward reducing the balance you transferred.

Standard interest rates

Once the introductory period ends, the card moves to its standard APR. This rate is typically much higher than the promotional rate, so any remaining balance will begin accruing interest.

How Do I Choose the Right Balance Transfer Credit Card?

The best balance transfer credit card for you will depend on your financial situation and how quickly you plan to repay the balance. When you compare cards, there are a few key things worth checking first.

How long is the interest-free period?

Many balance transfer offers include a 0% interest period. A longer promotional period can give you more time to pay off your debts without interest building up.

Is there a balance transfer fee?

Some cards charge a fee when transferring your balance, while others offer a balance transfer credit card with no fee. It’s worth comparing the fee against the potential interest savings.

What happens after the offer ends?

Once the promotional period finishes, the standard interest rate will apply to any remaining balance. Checking this rate can help you understand the potential cost if you don’t clear the balance in time.

Do Balance Transfers Hurt Your Credit Score?

A balance transfer doesn’t automatically damage your credit score, but applying for a new credit card usually involves a credit check. Opening a new account may cause a small, temporary change to your score. However, using a balance transfer responsibly could help improve your credit score over time. For example, paying down debt and maintaining consistent payments may positively affect your credit history and credit report. Before applying, it can help to check your eligibility first so you can see which cards you’re more likely to be approved for.

^Subject to eligibility. Not all providers offer a 0% interest deal. Terms and conditions apply. The duration of the 0% interest period may vary by provider. Credit is subject to approval.