The best balance transfer credit cards to help clear your debts interest-free
- We pick the top interest-free balance transfer credit cards
- Deals as long as 36 months and can help you clear your debts quicker
- But you must play by the credit card rules or risk higher interest rates
Published: 15:04 GMT, 9 January 2013 | Updated: 17:08 GMT, 18 January 2019
Balance transfer credit cards are a great tool to help clear your expensive debts quicker thanks to lengthy interest-free deals.
If you use these deals sensibly, these 0 per cent interest terms mean your repayments are focused on clearing your balance, rather than covering interest.
The number of interest-free balance transfer deals on offer however is falling, and promotional terms are shortening as banks tighten lending, but the top deals still offer up to 32 months.
Interest freeze: An extended 0 per cent interest term can help borrowers clear their debts quicker
Those with short to medium-term debts can use such offers to finally get out of the red, while those with much more to repay can look to these cards to provide a lower cost alternative to their existing debts.
But beware: there are caveats to consider and barriers to overcome when applying for such cards (see box) below.
Many balance transfer cards also come with a 0 per cent period for new purchases as well.
Avoid the balance transfer credit card traps
The crucial thing to remember is that card companies aren’t providing cheap credit as a favour.
They want you to not clear debts during the 0 per cent period and spend more on the card, which makes them money.
Avoiding falling into this trap is the key to balance transfer success.
Remember, you are trying to repay your debts, not build up more. So think hard before buying anything else with credit.
Work out how much you need to repay each month in order to clear the debt in time and set up a direct debit.
Beware, pay late or spend beyond your limit and you could have the 0 per cent promotion whipped away.
This is Money has compiled a selection of the best deals currently available in the balance transfer market.
This page is kept updated throughout the year – bookmark it for the very latest developments.
Longest balance transfer credit card deals
LONGEST INTEREST-FREE BALANCE TRANSFER CREDIT CARDS| Provider | Interest-free term on balance transfers | Interest-free term on purchases | Transfer fee | APR
|
Extra info |
|---|---|---|---|---|---|
| Post Office | 32 months | 3 months | 2% | 19.9% | You’ll need to transfer the balances within three months of your account opening |
| HSBC | 32 months | 3 months | 1.4% | 21.9% | Must transfer the balance in the first 60 days. |
| Sainsbury’s Bank | 30 months | 3 months | 3% | 19.9% | Up to 7,500 bonus Nectar points on Sainsbury’s shopping in the first 2 months. |
| Virgin Money | 29 months | 3 months | 1.75% | 20.9% | Transfers must be made within first 60 days to qualify for the 0% promotion |
| Barclaycard | 29 months | 6 months | 2.5% | 19.9% | £20 cashback when you transfer a balance of £2,000 or more within 60 days of opening your account until February 4th |
| Tesco Bank | 28 months | – | 2.69% | 18.9% | Also comes with 28 months’ 0% interest on money transfers (3.94% fee) |
| M&S Bank | 28 months | 6 months | 0.99% | 19.9% | £5 M&S voucher after first purchase at M&S. |
| Sainsbury’s Bank | 27 months | 27 months | 3% | 20.9% | Up to 7,500 bonus Nectar points on Sainsbury’s shopping in the first 2 months. |
| Correct as of Janurary 18 2019 |
THE SMALL PRINT: READ THIS BEFORE YOU APPLY
Being approved for a balance transfer card is by no means guaranteed.
In theory, those with the best credit ratings are the most likely to be approved for a card as they will have a history of paying off debt on time and have a stable income.
It is more probable that those with poor credit ratings will be rejected.
Those who are refused should bear in mind that applying for a number of other balance transfer cards in a short space of time will worsen their credit rating.
Many card providers will not allow you to transfer balances from another of its own products, so you should identify the best deal for you outside of your existing providers before making an application.
Some providers meanwhile may only accept your application if you already hold a current account with them.
There are other restrictions you will also have to satisfy, such as having a minimum level of income (generally £10,000-£20,000).
And to take advantage of introductory 0 per cent offers, you may have to transfer your balance within a specified time-frame. Most credit card providers increase handling fees after the first 60 or 90 days.
Completely ‘free’ balance transfer deals
For those confident they can pay off their credit card debts in a shorter time frame getting a balance transfer card with a lower handling fee, but lower interest-free period, can limit the extra charges on your debt.
Competition is tight though and there are a handful offering no handling fees at all with 0 per cent promotions just over two years.
Market leaders:
Santander’s Everyday credit card is the top pick in this category, offering 27 months 0 per cent interest with no handling fees. You also get 3 months free purchases.
Unlike some rivals there is no 30 or 90 restriction on when the transfer is made in order to qualify for the low handling fees, it must just be withing the 0 per cent interest promotion. There standard interest rate is 18.9 per cent.
Sainsbury’s Bank has a 22-month balance transfer credit card with no handling fees and 0 per cent interest on transfers and spending within the first three months. It comes with an APR of 19.9 per cent.
You will initially pay a 3 per cent balance transfer fee but this is fully refunded within 60 days.
THIS IS MONEY’S FIVE OF THE BEST CREDIT CARDS
Best low rate balance transfer credit cards
People who have racked up substantial credit card debt which is unlikely to be paid off within two years can plump for cards which offer lower rates of interest.
However, those who are considering this option should seek advice as to whether there might be a better deal to be a had consolidating such debts into a loan, particularly with borrowing rates at record lows at the moment.
The Tesco Bank Low APR Credit Card charges the lowest long-term rate at 5.9 per cent APR.
It comes with no handing fees on balance transfers if you shift debt to the card within the first 30 days. After that you will be charged 3 per cent.
Read more about the best low-rate credit cards in our round up here
Credit Card Reality Check Calculator
Warning: This calculator does not factor in the time it would take to repay a credit card debt where the minimum payment is calculated as a percentage.