How Balance Transfers Really Work: A UK Guide to Saving Thousands

Balance transfer cards can save you a lot of money on credit card interest. They let you move existing debt to a new card at 0 per cent interest for a set period, often 24 to 38 months. But there are rules, and getting them wrong can actually cost you more than doing nothing.

How a balance transfer works

You apply for a new credit card that offers 0 per cent on balance transfers. If approved, you transfer your existing balance to the new card. You then have a set period, the promotional window, to pay off the balance without accruing interest. There's a one-off transfer fee, typically 1.5 to 3.5 per cent of the amount transferred.

Say you transfer £3,000 to a card with a 3 per cent fee. That costs £90 upfront. But at a typical credit card rate of around 25 per cent APR, you'd pay approximately £750 in interest over a year by staying put. The transfer saves you £660 in the first year alone.

Current UK deals (as of early 2026)

The longest 0 per cent balance transfer deals in early 2026 run up to 36 to 38 months from major UK lenders. Transfer fees on those longer deals are typically around 3 to 3.5 per cent. Shorter promotional periods often come with lower fees. Some cards offer 0 per cent for 12 to 18 months with fees under 2 per cent.

One thing to keep in mind: the deal you actually get depends on your credit score. The headline rates are representative APR, meaning at least 51 per cent of approved applicants must receive them. You might be offered a shorter promotional period.

The rules you must follow

You typically need to complete the transfer within 60 to 90 days of opening the account. Miss this window and you'll be charged the card's standard interest rate on any later transfers.

Always make at least the minimum payment on time every month. Missing a payment can void the 0 per cent offer and trigger the standard rate, which could be 20 per cent or higher.

Don't spend on the new card. Purchases usually aren't covered by the 0 per cent balance transfer rate and will accrue interest from day one. Some cards offer 0 per cent on purchases too, but the promotional period is usually shorter.

When a balance transfer does not make sense

If your total debt is small (under £500), the transfer fee might eat up most of the interest savings. If your credit score is poor, you may not get approved for the best deals, or any deal at all. And if you know you won't pay off the balance within the promotional period, you need a plan for what happens when the 0 per cent ends.

Use our Balance Transfer Calculator to compare the total cost of staying on your current card versus transferring. It accounts for the transfer fee, promotional period, and any remaining balance after the 0 per cent period ends.

Sources

• Bank of England: effective interest rates on credit cards (December 2025)
• MoneySavingExpert: balance transfer comparison data (2025)
• MoneySuperMarket: balance transfer market analysis