Balance Transfer Basics: Save on Credit Card Debt

Ever feel stuck with a credit card that charges high interest? A balance transfer lets you move the debt to a card that offers a lower, often 0% introductory rate. The idea is simple: pay less interest, pay off the balance faster, and keep more cash in your pocket.

When a Balance Transfer Works Best

If you have a balance that’s growing because of a 20% APR, a 0% intro offer for 12–18 months can slash your interest cost dramatically. It works best when the total amount you move fits within the new card’s limit and when you can commit to paying off the debt before the intro period ends. For example, moving a £5,000 balance to a card with a 0% rate for 15 months means you’ll avoid over £1,000 in interest.

Look for cards that match your credit score. A higher score usually unlocks better offers and lower transfer fees. If you’re not sure how a transfer will affect your score, read our article on Does Debt Consolidation Hurt Your Credit? for a clear breakdown.

Pitfalls to Avoid

Transfer fees can eat into your savings. Most cards charge 1–3% of the amount moved, so a £5,000 transfer could cost £50‑£150. Calculate the fee against the interest you’d otherwise pay to see if it’s worth it. Also, don’t forget the end‑date of the intro period. Once it expires, any remaining balance flips to the standard APR, which can be higher than your original rate.

Opening a new card can trigger a hard inquiry, dropping your score by a few points. If you plan to apply for a mortgage soon, you might want to wait. Our guide on Does Consolidating Debt Improve Your Credit Score? explains how to manage this impact.

Here’s a quick step‑by‑step to launch a successful balance transfer:

1. Check your current balance and interest rate.
2. Shop for a card with a 0% intro offer that covers the full amount.
3. Confirm the transfer fee and any minimum payment requirements.
4. Apply for the new card and request the balance move before your old card’s due date.
5. Set up automatic payments to cover at least the minimum each month.
6. Track the months left on the intro period and plan a payoff schedule.

Stick to the repayment plan and avoid new purchases on the new card. Any extra spending can revive high interest and undo the savings.

Choosing the right card also means looking at other features. Some cards waive annual fees for the first year, while others offer rewards on payments. We cover the top picks for 2025 in our Best Debt Consolidation Loans article, which includes cards that double as low‑interest transfers.

Finally, remember that a balance transfer is a tool, not a cure. It works best when you pair it with a budget that cuts unnecessary expenses. If you’re already juggling multiple debts, consolidating them into one payment—like the strategy in How to Consolidate All Your Debt Into One Payment—can make tracking easier.

In short, a balance transfer can lower interest, speed up repayment, and improve your cash flow—provided you watch fees, respect the intro timeline, and keep your credit health in check. Ready to try it? Grab a calculator, run the numbers, and make the move that fits your financial goals.