What is Balance Transfer?
Moving an existing credit card balance to a new card, usually one offering 0% interest for a set period. Balance transfers typically incur a fee of 1-3% of the amount transferred. This is different from a 0% purchase card, which gives you interest-free spending on new purchases.
A balance transfer moves debt from one credit card to another, usually onto a card offering 0% interest on the transferred amount for a fixed promotional period. UK deals commonly run from around 12 months to over 30 months. Most charge a transfer fee of 1-3% of the amount moved, added to the new balance, though some shorter deals are fee-free.
It sits alongside two similar-sounding products. A 0% purchase card gives interest-free credit on new spending rather than existing debt. A money transfer card pays cash from the card into a current account, typically for a higher fee. In a stoozing context, balance transfers are how a stooze gets extended: when one card's 0% period approaches its end, the balance can be moved to a fresh 0% deal instead of being repaid from savings.
Promotional terms come with conditions. The transfer usually has to be made within the first 60-90 days to qualify for the full 0% period, minimum payments are still due every month, and a missed payment can end the promotional rate early, reverting the balance to the card's standard APR.