A credit card balance transfer is when you move the amount you owe (the balance) to another credit card. Show
If you're having trouble making repayments, there is help available. Contact your lender and talk to them about applying for financial hardship. The new interest rate on the balance you transfer may be either 0% or a special low rate for a limited time. If you can pay off the balance you transfer within that time, you may save money. But if you can't, it may end up costing you more. If you're struggling with your credit card repayments, a balance transfer might not be right for you. There are better options to get your debt under control. How to make a balance transfer work for youIf you're considering a credit card balance transfer, here's what to do to make sure it works for you. Pay off the balance in timeThe special low interest rate on the amount you transfer is called the balance transfer rate. It lasts for a limited time, usually between six months and two years. After that, the interest rate goes up. The new rate may be higher than the interest rate on your original credit card. If you haven't paid off the whole amount yet, whatever is left will attract this higher interest rate. Be realistic about what you can afford to repay in that limited time. Limit spending on your new cardIf you use your new credit card to buy things straight away, a different interest rate may apply. This interest rate — or 'purchase rate' — is usually much higher than the balance transfer rate. Also, your repayments may go towards paying off the new purchases, instead of paying off the balance you transferred. This means you don’t get the full benefit of the transfer, and you add to your credit card debt. If you limit your spending, you can focus on paying off the balance faster. Cancel your old cardIf you decide to do a balance transfer, make sure you cancel your old card. That way, you’ll avoid the temptation to create more debt. Protect your credit scoreWhen you apply for a new credit card or do a balance transfer, it's added to your credit report. If you apply several times in a short period of time, it can harm your credit score. If you've transferred your balance before, it may be better to try to pay off your credit card than to transfer again. Check how much you can transferSome cards set a maximum amount you can transfer, so you might not be able to transfer the full amount from your current card. If there's still money owing on your current card after the transfer, you'll have to pay interest and fees on that as well. It may not be worth paying interest and fees on two cards. Compare balance transfersCompare rates and fees so you get a balance transfer that will save you money, not cost you more later. Compare credit card rates and fees
Comparison websites can be useful, but they are businesses and may make money through promoted links. They may not cover all your options. See what to keep in mind when using comparison websites. Set a payment reminderIf you go ahead with a credit card balance transfer, try your best to pay it off before the special interest rate ends. Set a payment reminder in your calendar so you don't forget. How to make a balance transferYou can either set up the balance transfer when you apply for the card, or can make the transfer later – once you’ve been accepted. You have up to 60 days after being accepted to transfer funds onto the new card. Here’s how it works: 1. Choose the balance transfer card that’s right for you – compare our balance transfer offers for help in finding the best deal. 2. Apply for a Barclaycard online – you can use our free eligibility checker before you apply, to see if you’re likely to be approved. It’s quick, it’s easy and it won’t affect your ability to apply elsewhere. 3. Request the balance transfer – you can do this during your application or after you’ve been accepted. You’ll have 60 days to transfer your old balance to your new account. If you don’t complete the balance transfer, your promotional offer will expire. Once you’ve got your card, go online to activate it (you’ll need your account details to hand). Is there a downside to balance transfers?However, there are some possible downsides to keep in mind, including high balance transfer fees and the risk of adding to your debt if you can't pay off your balance before the promotional period ends.
What happens after a credit card balance transfer?Once a credit card balance transfer is complete, your new card's issuer will either pay off your old card's balance directly or write you a check so you may pay it off yourself. Moving forward, you need to make payments toward the new card on time.
Do balance transfers hurt your credit?A balance transfer can affect your credit score, depending on 1) if you open a new card to transfer a balance and 2) what you do once your balances have been transferred. If you simply move your balances around on your existing cards, your credit score likely won't be impacted.
What is the downside of a balance transfer credit card?Balance transfer fees: If you're transferring a balance to a card with a 0% APR offer, you will, in all likelihood, need to pay a balance transfer fee of 3% to 5%. That's $15 to $25 for every $500 you transfer. This might also be the case with cards that charge low interest rates on balance transfers.
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When you transfer balance on credit cards what happens
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