Balance transfer credit cards can slash the costs of existing credit card debt. So using one can be a sensible financial decision that could save you hundreds of pounds in interest payments. But as interest rates rise, there is chance that some deals may not hang around for long.
The latest Bank of England data shows that quoted interest rates on credit cards reached an average of 21.66% over the summer. That means that for every £1,000 borrowed, an average cardholder will have to pay £216.66 in interest a year if the debt is not paid off (most credit cards don’t charge interest if you pay off the balance every month).
For borrowers who are finding it hard to keep up with repayments, switching credit card balances onto a balance transfer credit card with a zero per cent interest rate makes good sense.
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You could get as much as 30 months at 0% interest, though the actual deal you get will depend on your credit score.
The best balance transfer credit cards on the market
To avoid paying any interest, always make sure you make the minimum repayment each month and clear the debt within the interest-free period.
It’s also important that you only use the card to pay off the existing credit card debt – and not spend on the card – or you could face hefty interest charges. Not paying the minimum balance each month could also incur fines and damage your credit rating.
You will need a good credit score to get the top deal – our links take you to the eligibility checker.
Here are some of the best 0% balance transfer cards on the market. This list is updated regularly, based on data provided by Defaqto.
0% interest balance transfer cards with the longest offer
Natwest Longer Balance Transfer Credit Card
- Up to 30 months 0% interest if transfer is made within the first 3 months
- 2.99% transfer fee
- After the 0% period, the interest rate jumps to 23.9% APR
Natwest's offering is only available to customers who already have a current account, savings account, credit card or mortgage with the bank. It also offers 0% on purchases for up to three months, however you have to pay that off in full in the three months.
Barclaycard Platinum Balance Transfer
- Up to 30 months 0% interest
- 3.45% transfer fee
- After the 0% period, the interest rate jumps to 24.9% APR
This is a generous offer from Barclaycard, but you must be a new customer to be eligible and you're not guaranteed to get the headline rate, as this depends on your credit history.
Check to see if you can get the Barclaycard deal via GoCompare's eligibility checker now or apply directly to Barclaycard.
Royal Bank of Scotland Longer Balance Transfer Credit Card
- Up to 30 months 0% interest if transfer is made within the first 3 months
- 2.99% transfer fee
- After the 0% period, the interest rate jumps to 23.9% APR
RBS is offering is only available to customers who already have a current account, savings account, credit card or mortgage with the bank. It also offers 0% on purchases for up to three months, however you have to pay that off in full in the three months.
Check to see if you can get the Barclaycard deal via GoCompare's eligibility checker now or apply directly to RBS.
M&S Balance Transfer Plus offer credit card
Again, if you don't have a great credit score you could get less time to pay off your balance before the interest kicks in. You can also get 0% interest on shopping for three months and can collect M&S points whenever you use your card.
Santander Long Term Balance Transfer Credit Card
- Up to 28 months 0% interest
- No monthly fee
- After the 0% period, a rate of 22.9% will apply
- 3% transfer fee
If accepted for this credit card, you can benefit from its 28 months 0% interest on balance transfers and 0% interest on purchases for 3 months – which starts once the account is opened. There is no monthly fee for the credit card.
Check to see if you can get the Santander card via GoCompare's eligibility checker or apply directly to Santander.
- Up to 27 months 0% interest
- 2.99% fee
- The interest rate jumps to 23.9% after the 0% offer period
If you're accepted for the card, HSBC offers a maximum 27-month interest-free period, although the balance transfer fee is 2.99%. You can also get up to three months of 0% interest on new purchases.
You might get different interest rates and promotional periods to those shown here, because these depend on your circumstances.
Check to see if you can get the HSBC card via GoCompare's eligibility checker or apply directly to HSBC.
0% interest balance transfer cards with no transfer fee
Natwest Balance Transfer Credit Card
- Up to 19 months 0% interest
- No fee to transfer
- After the 0% period, the rate changes to 23.9%
Once approved for this credit card, this is a good all-rounder with 19 months 0% on balance transfers, no transfer fee and up to three months 0% on purchases.
Check to see if you can get the Natwest deal via GoCompare's eligibility checker now or apply directly to Natwest.
HSBC no-fee Balance Transfer Credit Card
- Up to 16 months 0% interest
- No fee to transfer
- After the 0% period, the rate changes to 23.9%
Another no-fee balance transfer credit card that offers 0% on purchases for three months. You can't apply for this account if you hold an HSBC Basic Bank Account.
Check to see if you can get the HSBC deal via GoCompare's eligibility checker now or apply directly to HSBC.
Santander Everyday No Balance Transfer Fee Credit Card
- Up to 12 months 0% interest
- No fee to transfer
- After the 0% period, the interest rate jumps to 22.9% APR
This is one of the best offers on the market for no-fee transfer cards, although you might be offered less time to pay off the balance if your credit score isn’t perfect. There’s also an opportunity to use the card for purchases – it offers 0% interest on purchases for up to 3 months.
Check to see if you can get the deal via GoCompare's eligibility checker now or apply directly to Santander.
Drawbacks of balance transfer credit cards
These cards don’t charge any interest on balances during the offer period, but some do charge a fee to transfer the debt.
The card providers that charge fees generally offer a longer 0% period. On the other hand, providers that don’t have a transfer fee usually have a shorter interest-free period.
Any balance that’s left after the 0% balance transfer offer expires will be charged interest at the card provider's set rate. So, it’s important to pay any balance before the offer period expires.
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