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When you’re attempting to pay off your credit and store card obligations while avoiding late fees, it makes sense to transfer them to a credit card with no Interest. It is a choice that may help you eliminate debt quicker and more effectively by consolidating current debts.
Choosing the best balance transfer credit cards in UK will be determined mostly by your eligibility and the location of your present debt since you cannot transfer to the same bank or organisation. If you have a credit card or overdraft debt, switching to a balance-transfer card with a 0% Interest rate may help you save money. This article contains the top ten debt transfer offers, as well as recommendations on how to pay off a credit card bill.
What is a Balance Transfer Card?
Balance transfer cards are like the superheroes of credit card world, swooping in to save you from high interest charges and helping you become debt-free faster. With a 0% balance transfer, you can say goodbye to those pesky old credit and store card debts and hello to a new card that offers 0% interest on your transferred balance.
But what exactly does this mean? Well, let’s break it down. When you opt for a balance transfer, you’re essentially moving your existing debt onto a new credit card with a lower or 0% interest rate. This means that instead of paying exorbitant amounts of interest each month, more of your repayments go towards reducing the actual debt itself.
These cards come with a designated 0% period during which no interest is charged on your transferred balance. For example, imagine having an impressive 28 months without any interest payments! Of course, some cards may require you to pay a small fee for this privilege, but it’s often well worth it when compared to the amount saved in interest charges over time.
By taking advantage of these 0% periods offered by balance transfer cards, you can make significant progress towards becoming debt-free. It allows you to focus more on paying down the principal amount rather than constantly battling against mounting interests. So if clearing off your debts sounds appealing (and who wouldn’t want that?), then keep reading as we unveil our top picks for the best balance transfer credit cards in the UK!
The Golden Rules
When it comes to balance transfer credit cards, there are a few golden rules that you must adhere to in order to make the most of these interest-free offers. Failing to follow these rules can end up costing you dearly in the long run, so pay close attention.
First and foremost, always aim to clear your debt or shift it again before the 0% or cheap rate ends. If you don’t take action within this time frame, the costs can skyrocket and leave you in a worse financial situation than before. It’s crucial to stay on top of your payments and avoid letting the interest rates creep back in.
Make sure that you repay at least the monthly minimum amount required by your credit card provider. Failure to do so may result in losing that coveted cheap rate and being hit with higher charges.
Next, resist all temptations when it comes to spending or withdrawing cash using your balance transfer card. These transactions usually come with steep fees and high-interest rates which will devour any progress made towards paying off your existing debt.
To take full advantage of those attractive 0% rates along with low fees, ensure that you initiate the balance transfer within one to three months after getting approved for your new card.
Remember that balance transfers cannot be made between two cards from the same bank or often even within the same banking group. Be mindful of this restriction as it could affect your ability to consolidate debts from multiple sources onto one card.
By following these golden rules diligently, you’ll be able to maximize the benefits offered by balance transfer credit cards and pave a smoother path toward becoming debt-free sooner rather than later.
How to Apply for a Balance Transfer Card?
Applying for a balance transfer card used to be a bit of a guessing game. You had to submit an application and hope for the best, not knowing if you would be approved or if it would negatively impact your credit report. But times have changed, and now there’s a better way.
With eligibility calculator, you can find out your chances of getting the top credit cards without leaving any marks on your credit report that lenders can see. It uses a ‘soft search’ which is not visible to lenders but gives you an accurate percentage chance of approval.
This is the ideal route to take because it allows you to see which cards you’re most likely to be accepted for before applying. No more wasting time and risking rejection. And here’s something even better – some cards offer 100% acceptance chances, meaning they are pre-approved just for you!
This is particularly helpful when considering “up to” cards, where those with lower credit scores might get shorter promotional periods than advertised. So make sure to pay attention if you’re not showing as pre-approved.
By using eligibility calculator, you can apply confidently and increase your chances of securing one of the top balance transfer credit cards in the UK without any negative impact on your credit report.
Best Balance Transfer Credit Cards in UK - Top 10 Interest Free Cards
1. Virgin Money
The Virgin Money balance transfer card boasts a longer introductory period than many other cards, as well as a 0% Interest rate on purchases. Virgin Money has extended the balance transfer card’s interest-free period.
It previously provided a 32-month interest-free term, but it now provides a generous 34-month duration, making it the market’s longest.
2. Sainsbury's bank
The Sainsbury’s credit card is a wonderful alternative for consumers who buy at Sainsbury’s and utilise the Nectar programme since it offers additional points for pounds spent at Sainsbury’s, TU Clothing, or Argos.
Our rating for Sainsbury’s Bank’s no-balance-transfer-fee credit card is four stars. It provides up to 21 months of interest-free credit. It is the market’s second-longest period for a card with no balance-transfer charge. The only reason it doesn’t earn five stars is that it charges certain clients a pretty high Annual Percentage Rate of up to 29.90 per cent after their promotion term expires.
3. MBNA
The MBNA credit card has a soft-check option, which allows you to test whether you’d be approved without hurting your credit score. To qualify for the opening incentives, all balance transfers must be completed within 60 days.
The duration of the introduction period will be determined by eligibility.
4. Barclaycard
The Barclaycard Platinum card provides perks such as £30 cashback, early entrance, and VIP tickets to the hottest movies, concerts, and events. The no-cost platinum balance transfer card from Barclaycard offers the fourth-longest 0% duration among the fee-free cards, delivering 15 months with no Interest.
It also features a comparatively low APR of 21.9 per cent if you have a debt to pay after your promotional term expires.
5. Santander Everyday
The Santander Everyday credit card offers an excellent selection of rewards, including up to 15% back at certain merchants. Santander’s Everyday credit card is interest free for 21 months. It is one of the longest 0% Interest rates available, and there is no balance transfer charge.
That is, if you make your monthly payments and do not use the card for anything else, you may borrow money for free. It also has a cheaper Interest rate after the introduction period (which is shorter than that of other banks).
6. Tesco Bank
Although the Tesco Bank credit card does not provide a 0% introductory rate on purchases, it does provide Tesco consumers with Clubcard points and other advantages and prizes. If you desire a lengthy transfer time, this card should be on your shortlist.
That is, if you make your monthly payments and do not use the card for anything else, you may borrow money for free. It also has a cheaper Interest rate after the introduction period (which is shorter than that of other banks).
7. The First Direct
The First Direct balance transfer card is exclusively accessible to First Direct bank members; however, beyond the promotional period, it provides a special Interest rate.
8. HSBC
An HSBC balance transfer credit card features no annual fees and offers special deals and discounts to cardholders. Although there is a cost of 2.7 per cent, HSBC offers the second-longest 0 per cent period presently accessible on the market.
Be aware that HSBC is at the bottom of our customer experience rankings, ranking 27th out of 30 brands.
9. Cooperative Bank
The Co-Operative Bank balance transfer card is exclusively available to Co-Operative Bank clients and offers a reasonable introductory term and no yearly charge.
10. M&S Bank
Sparks Card points are earned on all M&S credit card purchases, including those made outside of M&S shops. This M&S Bank credit card has one of the longest interest-free balance transfer periods available, at 32 months.
There is a cost, but it is cheaper than competitors providing the same balance transfer term at 1.99 per cent.
Will I get approved for a credit card?
A credit card application will be denied if the applicant has a poor credit score.
A credit score is calculated by reviewing a person’s lending history.
Anyone who has never borrowed before will have a poor credit score.
Anyone who has a track record of borrowing money and returning it on time will get a high score since it demonstrates that they can trust to handle debt.
A credit report will contain a history of any business loans, mortgages, credit cards, and mobile phone contracts utilised.
Late payments are a black mark that lowers someone’s credit score.
A poor credit score will make it difficult to get a credit card with a low APR or an extended interest-free period. A severely bad credit score may result in an application being entirely turned down for a credit card.
Conclusion
When you use a credit card, you accumulate a debt that you must repay. It may pay in whole throughout each billing cycle or in minimum monthly instalments, which normally entail Interest costs. When there is a debt on a credit card that has to be paid off, the Interest rates might make it more costly and take longer. Transferring a credit card balance to a new card with a low or zero Interest rate allows you to pay off the debt quicker and with fewer costs, making the most of each payment. The new card should have a 0% Interest rate for a fixed length of time or at the very least a very low-interest rate.
FAQs on what are balance transfer credit cards
1. Do balance transfers hurt your credit?
Depending on
1) whether you open a new card to transfer a balance and
2) what you do after your balances have been transferred, a balance transfer may have an impact on your credit score. If you simply switch the balances on your present cards, it won’t have an impact on your credit score.
2. Is it worth getting a balance transfer?
Is the cost of a balance transfer worth it? If you have a sizable credit card load, paying the 3% balance transfer charge (or perhaps even the 5% cost) to move your balance to a card with a 0% introductory APR offer is totally worthwhile, but only if you still need time to pay off a bill.
3. Is it better to do balance transfer or pay off?
However, if you need several months to pay off high-interest debt and have excellent enough credit to get approved for a card with a 0% introductory APR on balance transfers, a balance transfer is typically the best option. With such a card, you might significantly reduce your interest costs and have a leg up on balance repayment.
4. What is the downside of a balance transfer credit card?
Following the promotion, your interest rate can go up. After adding the balance transfer cost, you could not save any money. It may influence your credit score. By continuing to incur debt, you run the risk of doing so.
