Many households are managing tighter budgets at the moment, and existing credit card debt can make that pressure more noticeable.

For those carrying a balance on a credit card, a balance transfer card is one option worth understanding.

ClearScore is a credit broker, not a lender.

In a nutshell: how does a balance transfer credit card work?

A 0% balance transfer is a specialist type of credit card. If you apply for one of these cards and get accepted, you can transfer old debts to your new card. Anything you shift across will be interest-free for as long as the 0% period.

How much debt you can transfer will depend on the credit limit you are given on your new card. If you're lucky, your credit limit will be greater than your total credit card debt. If this is the case you'll be able to move across ALL of your debt at once.

However, if you're given a credit limit that is lower than your total debt, you'll only be able to shift across a proportion of your balance. If this happens to you take a look at our article that explains what to do if you're given a low credit on a balance transfer credit card.

Balance transfer credit card warning

Whenever the Bank of England raises interest rates, the cost of borrowing also goes up. Each time borrowing costs rise, 0% cards become less profitable for lenders. So, in a rising rate environment, there may be fewer balance transfer offers in the market, and they may be less attractive.

Always make sure you can afford repayments.

How can a balance transfer credit card cut what you owe?

A balance transfer credit card can be a valuable tool for cutting existing credit card debt. While you still have to repay any debt you shift across to a 0% balance transfer card, you'll stop paying interest on your balance for the duration of the 0% period. This means all of your repayments during the 0% period goes towards cutting down what you owe as opposed to servicing interest payments.

Repaying a larger portion of the balance each month means the debt decreases faster than it would if interest were still being charged. Depending on the balance and repayment amount, the savings compared with paying interest can be substantial.

For example, if you had £5,000 credit card debt on a typical, bog-standard credit card with 39.9% interest and only repaid the minimum each month, you'd pay around £1,600 in interest over the first year alone — and the debt would barely have reduced. With a 0% card, interest payable on the same amount of debt would be slashed to zero. (So long as you stick to the rules of the card to keep your 0% promotional period.)

Can anyone get a balance transfer credit card?

To get your hands on a balance transfer card you must first be accepted. Lenders use their own eligibility criteria, and a credit score is only one factor they may consider. A higher score may help in some cases, but it does not guarantee acceptance or access to particular deals.

Take a look at our article for tips on how to boost your credit score.

Will an application harm my credit score?

A full credit-card application will usually result in a hard search (although practices can vary by lender) — whether the application is accepted or rejected. These marks typically remain on file for around a year. A pattern of multiple applications in a short period can be interpreted by lenders as a sign of financial difficulty, and making further applications shortly after a rejection can reduce the chances of being accepted elsewhere.

A credit card eligibility checker offers a way to see likely acceptance without this risk. That way you can see what cards you're most likely to be accepted for before applying. With credit card eligibility checkers you only undergo a 'soft' credit search which lenders can't see. For more information, see our article that explains soft vs hard credit searches.

What are the best balance transfer credit cards out there right now?

Based on a review of major credit card comparison sites and individual provider websites, as of 08 September 2026, the longest 0% balance transfer periods on the market reach up to 38 months, with fees on the longest deals generally falling between 3.1% and 3.5%.

For those looking to avoid transfer fees entirely, the market has tightened considerably. The best no-fee offers currently top out at around 14 months, with several other providers offering shorter fee-free periods of around 12 months.

Providers frequently competitive in this space include TSB, Tesco Bank, Barclaycard, Virgin Money, and Santander — though which one currently leads, and by how much, changes regularly.

Balance transfer credit card deals change regularly. For a list of current market-leading deals, plus the golden rules to follow with these cards, take a look at our best balance transfer credit cards guide.

Disclaimer: Comparisons in this article are based on publicly available information believed accurate at the time of publication and may change without notice. Please confirm current details with the relevant providers before deciding. All trademarks are the property of their respective owners.

Balance transfer card APRs (after promotional period)

It's important to note that once the 0% promotional period ends, the representative APR on most balance transfer cards in this category currently sits in the mid-to-high 20s (variable). This is the rate you will likely be charged on any remaining balance once your 0% period ends — always check the specific card's terms before applying, since this figure varies by provider and by individual circumstances.

Keeping the 0% interest period intact depends on following the lender's terms closely, since even a minor slip-up can trigger a 'Penalty APR' or cause the promotional offer to be revoked instantly.

The most common pitfall is missing a monthly minimum payment or being even a few days late, which lenders often use as a reason to void the agreement and revert you to a standard APR (often mid-to-high 20s or higher). Additionally, exceeding your credit limit is a major breach that can end your 0% deal immediately.

Using the card for 'unintended purposes'; for example, if you have a 0% balance transfer card, using it for cash withdrawals, gambling, or buying foreign currency will not only incur immediate interest at a high rate but could also jeopardize the promotional status of your entire balance. Finally, the transfer window is worth noting closely - most 0% offers require the debt to be moved within the first 60 to 90 days of account opening; missing this deadline means you’ll miss out on the 0% rate entirely, even if the card is advertised as having a 38-month offer.

ClearScore is a credit broker, not a lender.