There are limits on how much you can transfer to another credit card and which credit card provider you can apply to. But even so, it’s well worth considering if you have a debt to pay off.Â
If you owe money on one or more credit cards and want to get a balance transfer card, you must:
Be a UK resident with a UK bank or building society
Be employed and receive a regular income
Not have any County Court JudgmentsÂ
Be looking to transfer from Visa, MasterCard or American Express store and credit cardsÂ
Not apply to providers of any credit cards you currently have. This includes credit cards issued within the same group - for example, transferring from a Capital One card to a Post Office card.
Read more: Which banking group owns your credit card?
You can typically apply to transfer from ÂŁ100 to up to 93% of the amount you owe on your credit cards. Some card providers let you transfer up to 95%.
The maximum limit governing how much you can transfer exists to cover any balance transfer fee and pending purchases.Â
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Transferring 93% of what you owe to a 0% card is attractive to anyone paying a small fortune in credit card interest. But while your application may be successful, securing a 93% limit isn’t guaranteed.Â
Such an outcome could leave you with a sizable chunk of debt on your old cards, but you shouldn’t act hastily and reject what you may feel is a disappointing offer. Credit card providers base their decisions on applicants’ credit reports and may broadly agree on limits. While this is less than ideal, the good news is you can open as many balance transfer cards as you need, enabling you to cover the bulk of your debt.
Read more: How many balance transfers can you do?Â
Making several credit applications can affect your credit score. But that shouldn’t dilute the appeal of balance transfer cards.Â
Apply for one 0% interest deal at a time, and stop once you have enough to cover most of your debt. The benefits of clearing what you owe usually outweigh any temporary damage caused to your credit score by making several applications over a short period.
In theory, you can transfer almost all of your debt from multiple credit and store cards to a single balance transfer card. In practice, the credit limit on the new card might not allow you to transfer all your balances. In this case, start by transferring the balances from the cards with the highest interest rates.
Aside from this, the main restriction is you can’t transfer from a card that is part of the same banking group as your balance transfer card. For example, you couldn’t import debt to an HSBC balance transfer card from a First Direct, M&S or another HSBC credit card, including balance transfer credit cards.Â
Transfer your balance to a balance transfer card and pay 0% for the introductory period