How many balance transfers can you do?

Consolidating your debts onto a 0% card can make it quicker and easier to pay them off. Our five-minute guide will help you find out how many balance transfers you can make.

Can you do multiple balance transfers to one card?

Yes, you can make multiple balance transfers to one card. However, the total amount you can transfer depends on your credit limit. You may also have to adhere to other restrictions, such as: 

Minimum transfer amounts. Many card companies only accept balance transfers of at least £50. 

Balance transfer reserve. Card providers typically insist you leave a certain percentage of your credit limit – say 5% – unused. 

So, if your new card's credit limit is £2,000, the maximum you can transfer might be £1,900.

Transfer fees. These are usually between 2% and 4% of the amount transferred. You may be able to find a card that offers fee-free balance transfers, but these cards rarely offer the longest 0% deals.

Card providers. You can only transfer money to a card offered by a different banking group. For example, you can’t transfer a balance from an existing NatWest card to a 0% card with RBS because the two banks are part of the same banking group. 

Interest-free timeframes. You often have a specific timeframe – typically between 30 and 60 days – within which to benefit from the 0% deal.

Read more:

• How long does a balance transfer take?

• Do balance transfers impact your credit score?

• How to do a balance transfers with bad credit

• What happens to your old credit card after a balance transfer?

How to transfer multiple balances

Follow these five steps to transfer debts from different accounts to a new 0% or low-interest credit card. 

• Find a credit card that offers a good deal on balance transfers. Check the balance transfer fee and the length of the low-rate deal.

• Apply for the card of your choice and specify the details of the accounts you want to transfer money from if required.

• Check the credit limit the provider offers you is high enough to cover all the debts you want to transfer.

• Transfer the balances you want to move to your new credit card within the terms of the promotional deal.

• Keep all the cards and accounts until you are sure all the transfers have gone through.

Read more…

• Interest-free credit cards

• 0% purchase credit cards

• Balance transfer and purchase credit cards

• How to use a credit card

Mistakes to avoid when doing a balance transfer

Transferring one or more balances to a balance transfer credit card is generally straightforward. However, there are some common balance transfer mistakes to avoid. These include:

Waiting too long to transfer the money

Most 0% balance transfer credit cards require you to make any transfers within 30 or 60 days of opening your account. So, waiting too long to transfer your debt could mean missing out on the 0% offer entirely. 

Missing a payment date

Many credit card providers terminate benefits, such as 0% balance transfer deals, if you make a late payment. Setting up a Direct Debit to cover at least the minimum amount each month can help to avoid this.

Continuing to spend on your old credit card

There’s little point transferring a balance from an expensive credit card just to rack up more debt at the same interest rate. If you think you’ll struggle to stop yourself from spending, it’s probably best to close your old credit card account completely.

Spending on your balance transfer credit card

The best balance transfer credit cards often charge high interest on purchases – and leave these expensive debts accruing interest while any payments you make go towards paying off your – much cheaper – transferred balance. 

Taking too long to clear your debts

It’s a good idea to pay off your debt before the 0% promotional period ends. Make a plan to pay off your balance before the intro period is over by estimating how much you’ll need to pay each month.

Read more:

• No annual fee credit cards

• Premium credit cards

• Bad credit credit cards

Should you do multiple balance transfers?

Transferring multiple balances to a single credit card can have several advantages. For instance:

• It makes your debts easier to manage as you have just one monthly payment to worry about. This helps you avoid missed payments and penalties

• Transferring multiple balances to a single credit card often reduces the amount you have to pay in interest while you clear your debts – if you can go from 20% interest to 0%, for example, you could save hundreds of pounds overall

However, transferring multiple balances often means paying multiple balance transfer fees.

If you have large debts, you may also struggle to clear them in full within the 0% period. 

And that could mean paying an even higher interest rate than you were on previously – although you could always switch to another balance transfer deal at this point if necessary.

So, if you’re able to clear your debts without transferring them to a credit card, this is a better choice in most cases.

You can then choose a credit card that offers benefits, such as

• Reward credit cards

• Cashback credit cards

• Airmiles credit cards

• Best travel credit cards

Read more…

• Compare balance transfer credit cards

• Common balance transfer mistakes – and how to avoid them

• Pros and cons of balance transfer cards