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The credit card statement lands after a long shift, and you open it with the enthusiasm of someone opening a parking fine. The good news is that there might be a way to make it feel a bit lighter.
A balance transfer credit card lets you move what you owe onto a new card with an introductory 0% interest period, so your repayments go towards the debt rather than the interest. It isn’t right for everyone, and it’s not free, but with a bit of planning it could give you some breathing room.
Here’s how balance transfer cards work, what to check before you apply and how to tell if one is worth it for you. And remember to use Blue Light Card’s credit card comparison tool.
A balance transfer credit card allows you to move what you owe on one or more existing credit cards onto a new one. The draw is the introductory 0% interest period many of them offer, which means no interest on the transferred balance for a set length of time.
This gives you a window to pay down the debt without interest growing in the background. If your balances are spread across several cards, it can also bring them together in one place, making it easier to manage.
A few, yes:
The best starting point is to do a bit of homework and consider if a balance transfer is right for you. After that, the process itself is fairly straightforward.
Start with four simple questions:
The Which? credit card repayment calculator can show you the repayment time and total cost of your current credit card debt.
Use those figures to estimate how long a 0% period you’d need to clear the debt. Keep in mind that longer deals often come with higher transfer fees, so the longest isn’t automatically the best fit. A balance transfer calculator can help you weigh up your options before you start looking at specific cards.
Now you can start comparing. A credit card comparison tool is a good place to start, as it shows you the length of the 0% period, the transfer fee and the representative APR that applies afterwards.
Start with Blue Light Card’s own credit card comparison tool, powered by Creditec, which allows you to search for balance transfer cards. If you choose a qualifying credit card, you’ll receive a voucher from a choice of retailers.*
Whichever tool you use, compare the balance transfer fee with the interest you’d pay on your current card during the same period. Sometimes staying put is the cheaper option.
Once you’ve found a card that best suits you, it’s time to make your application. Bear in mind that the credit limit you’re offered might not cover everything you owe, so don’t count on moving the full balance until you know what you’ve been given.
Top tip: try not to apply for several cards in quick succession, as multiple hard credit searches can make it harder to get credit.
Once your new account is open, making the transfer itself should be relatively straightforward. Depending on the provider, you can normally request the transfer online, through an app or over the phone. Some let you do it as part of the application.
A few things to keep in mind:
The aim here is to use the introductory interest-free period to bring what you owe down as far as you can, ideally to zero before interest kicks in again.
Stick to the payment schedule that allows you to clear the debt within the 0% interest period and always pay at least the minimum on time. Depending on your card’s terms, a missed payment could mean losing your promotional rate. A direct debit is a sensible safety net if your rota makes remembering dates a challenge.
Try not to treat the card as an opportunity to buy more stuff. A 0% balance transfer deal doesn’t necessarily apply to new purchases, so anything you spend could attract interest. It’s best to stick to your original goal of clearing the debt.
Put the date in your calendar and keep an eye on your progress via your monthly statements to see how you’re getting on. If you still have a balance when the promotional period ends, you’ll start paying interest on what remains at the card’s standard rate.
If it looks like you won’t clear the balance in time, review your options ahead of time rather than waiting for the 0% period to run out.
A balance transfer card can be a very useful option if you’re already paying interest on existing credit card debt. It isn’t for everyone, though.
It could suit you if:
It might not be worth it if:
If you’ve done all the sums and decided a balance transfer card is the right call for you, it’s worth checking what’s available through Blue Light Card.
If you're a Blue Light Card member, you can find offers from providers including Tesco Bank, Santander, HSBC, Virgin Money and MBNA, with a range of options to suit different needs. These cover longer 0% balance transfer periods, low-fee deals and cards that also offer an interest-free period on purchases.
Not sure where to start? Blue Light Card’s credit card comparison tool, powered by Creditec, lets you search for balance transfer cards, and a qualifying card comes with a voucher from a choice of retailers.*
Representative Example: If you spend £1,200 at a purchase interest rate of 24.9% p.a. (variable), your representative APR will be 24.9% APR (variable).
Not directly. Applying for a balance transfer card will usually involve a hard credit check, which will appear on your credit file. However, making your repayments on time and reducing what you owe can help demonstrate that you’re managing credit responsibly. Don’t take out a balance transfer card purely to improve your credit score, though.
Potentially, yes. How much you can move will depend on the credit limit and balance transfer limit you’re given. There can also be restrictions on transferring balances between cards from the same provider or banking group.
Any transferred balance you still owe will usually start attracting interest at the card’s standard rate once the promotional period ends. Check what that rate will be before applying and aim to clear the balance during the 0% period if you can.
No. It depends on your existing interest rate, how much you owe, any transfer fee and how quickly you can repay the balance. Compare any balance transfer fee with the interest you’d pay over the same period if you left the balance where it is.
Blue Light Card Ltd is an Introducer Appointed Representative of Creditec Limited, acting as a credit broker, not a lender. Creditec Limited is authorised and regulated by the Financial Conduct Authority (FRN: 971164) & registered in England and Wales under company number 13700425; registered office: The Steam Mill Business Centre, Steam Mill Street, Chester, United Kingdom, CH3 5AN FRN. 971164.
Creditec Limited, will provide you with an information-only comparison service for credit cards from a range of providers. Creditec Limited will not charge you a fee for using their services. Blue Light Card Ltd will receive a commission from Creditec Limited if you subsequently purchase a credit card or bank account product through Creditec Limited’s service as a credit broker, for more information about this commission please contact us. For more information on Blue Light Card's regulatory status, please read the Legal and Regulatory information.
*Voucher terms and conditions
1. £10 voucher from a choice of Sainsbury’s, Argos, Aldi, Starbucks, Just Eat, M&S and Deliveroo when you choose a qualifying credit card through Blue Light Card’s comparison service powered by Creditec, via this link only.
2. Vouchers are only available for new credit agreements with 118 Money, Capital One, HSBC, MBNA, Santander, Zable, Zopa, thimbl and Vanquis via this link, not over the phone, or on webchat.
3. Customers who cancel their order will not be eligible for a voucher.
4. This offer may be withdrawn or amended at any time.
5. You will be sent instructions on how to choose your voucher up to 30 days of entering into a credit agreement. You will have 90 days to claim your voucher by sending it to your email or mobile phone.
6. Please check the redemption instructions and terms and conditions of your chosen voucher before making your choice.
7. Vouchers should be treated like cash and kept securely. They cannot be replaced if lost or stolen
8. If you have any questions or have not received your voucher 90 days after your sign-up, please contact hello@giftcloud.com.
9. The transaction should be completed in one session to ensure the sale is tracked correctly. If before completing your transaction you click through from another affiliate site or navigate away from the site, the sale may not track correctly, and you will not qualify for the reward.
10. If you use ad-blocking software, a VPN, or have cookies disabled on your device, the sale may not track correctly, and you will not qualify for the reward.
11. Giftcloud holds the right to ask for an order reference or purchase email from the provider that is sent via email after purchase to verify the sale.
12. Giftcloud holds no information on the status of your account and can only act on information from the provider. Any information provided to Giftcloud by the provider about your Reward shall be passed on to you and will be considered final.
