Yahoo Movies Best 0% balance transfer credit cards
If you are the custodian of expensive credit card debt, one of the most valuable kinds of plastic you could get your hands on is likely to be a 0% balance transfer credit card.
These cards present the opportunity to transfer that debt onto a new card from a different provider, and avoid paying interest on it for a set period. However, in most cases a balance transfer fee will apply.
If used to its best advantage, this arrangement can save you a tidy sum in interest payments and even help you clear your debt faster.
What are the best 0% balance transfer credit cards?
But which of the numerous balance transfer cards should you opt for?
We carried out some research (April 2022) to round up some of the best deals. We looked at the longest 0% balance transfer duration on cards that charge a fee, as well as those that don’t. We’ve also considered other criteria – more on this in our methodology, below.
Before you start, bear in mind that not all applicants will be offered these cards on the stated terms. Depending on your credit score you may be offered a shorter 0% balance transfer window and/or a higher representative APR (annual percentage rate). You may also be turned down.
Note also that these deals are just an example of the wider market. And, while they are correct at time of writing, 0% balance transfer credit card offerings can – and do – change.
1. HSBC Balance Transfer Card
0% duration: 33 months
Transfer fee: 2.84%
Representative APR: 21.9% (variable)
Our verdict
HSBC offers a leading 33 months interest-free on balances transferred from cards outside the HSBC Group (HSBC, First Direct, John Lewis or M&S Bank). And, at 2.84%, the balance transfer fee is also competitive.
This card also comes with exclusive offers via HSBC home&away, ranging from car hire to entertainment.
2. M&S Credit Card Transfer Plus Offer
0% duration: 32 months
Transfer fee: 1.99%
Representative APR: 21.9% (variable)
Our verdict
M&S Bank offers 32 months’ at 0% on balance transfers. And it’s also guaranteed if you are accepted. The balance transfer fee, at 1.99%, is very competitive when set against other balance transfer cards with the longest 0% offers.
M&S Bank is part of HSBC, so you will not be able to transfer balances with cards from HSBC, John Lewis, First Direct, or other M&S cards.
3. Sainsbury’s Bank Balance Transfer Credit Card
0% duration: Up to 32 months
Transfer fee: 2.24%
Representative APR: 21.9% (variable)
Our verdict
This deal from Sainsbury’s Bank’s balance transfer offering of up to 32 months interest-free, with relatively low fee.
It’s more competitive still if you’re a regular Sainsbury’s shopper. You can use the card to earn 500 bonus Nectar points for each time you spend £35 or more on Sainsbury’s shopping (but not fuel) in the first two months (max 5,000 points, which is worth £25). It then pays an ongoing two points for every £1 spent at Sainsbury’s and one for every £5 spent elsewhere.
But the balance transfer fee applies to transfers made ‘at application’, which is more restrictive than the more typical 60 or 90 days period on offer to make the transfer and get the promotional rate.
4. Santander Everyday Long Term Balance Transfer Credit Card
0% duration: 31 months
Transfer fee: 2.75%
Representative APR: 20.9% (variable)
Our verdict
This credit card from Santander stands out from the crowd in the 0% balance transfer stakes, offering a leading 31 months for a fee of 2.75% of the debt transferred. These terms are also guaranteed for all applicants who are accepted for the card.
While new spending should be approached with care, the card also pays up to 15% cashback on purchases made at selected retailers including Just Eat and Costa. All new spending for the first three months is also interest-free.
After the 0% period expires, representative APR of 20.9% (variable) applies.
5. Halifax 29 Month Balance Transfer Credit Card
0% duration: 29 months
Transfer fee: 2.69%
Representative APR: 21.9% (variable)
As well as a generous 0% balance transfer offering, Halifax throws in 9 months’ interest-free spending. Keep in mind however that the primary purpose of any balance transfer clear is to existing debt.
This card is an ‘up to’ so you may be offered higher transfer fee and a shorter 0% duration, depending on your circumstances.
While you won’t be able to transfer from one Halifax card to another, you can make transfer from another card in the HBOS group (such as Bank of Scotland).
Best balance transfer cards with no fee
If you don’t need a long time to pay off your credit card debt, some providers offer shorter deals without charging a balance transfer fee at all. Essentially, this is an opportunity to pay off your debt for free, so long as do it within the interest-free window and don’t accrue any more balance in the meantime.
Here are some of the best no-fee balance transfer credit card offers we found (April 2022) that are not restricted to existing customers.
1. HSBC No Fee Balance Transfer
0% duration: 20 months
Transfer fee: 0%
Representative APR: 21.9% (variable)
Our verdict
If you have credit card debt that’s outside of HSBC which you can clear in less than two years, coupled with a great credit score, this card from HSBC is a winner. And if you are accepted for the card, the advertised terms are the terms you will be offered.
2. Sainsbury’s Low Fee Balance Transfer Credit Card
0% duration: Up to21 months
Transfer fee: 0%
Representative APR: 21.9% (variable)
Our verdict
The balance transfer headline on this card is 21 months at 0% for no fee.
However, whether you qualify for these terms depends on your credit score and circumstances.
The card comes with Nectar perks, though regardless. You can earn up to 500 bonus Nectar points each time you spend £35 or more on Sainsbury’s shopping (excludes fuel) up to 10 times. That’s a maximum of 5,000 points, worth £35.
You can then collect up to 3 points per £1 spent on Sainsbury’s shopping, Argos, Habitat or Tu Clothing when you use the card alongside your Nectar card, and 1 point per £5 spent elsewhere.
3. Santander Everyday Credit Card
0% duration: 21 months
Transfer fee: 0%
Representative APR: 20.9% (variable)
Our verdict
Santander’s Everyday card offers 21 months at 0% with no balance transfer fee to pay, while the first three-months’ purchases also won’t attract interest.
You can also earn 15% cashback with Santander's Retailer Offers, with participating retailers including Costa and Just Eat.
After the 0% promotional period, the card charges interest at a representative 20.9% APR (variable).
What’s our methodology?
When selecting the 0% balance transfer cards, we considered the following criteria:
0% balance transfer duration (for fee-paying and non fee-paying cards)
Balance transfer fee
Whether terms are guaranteed if accepted
Representative APR (applies after the 0% period expires and to purchases)
Rewards, perks and benefits
Note that we have listed the best case scenario with each card in terms of the 0% period. You may be offered a shorter promotional period. You may also be offered a higher APR than the one you see listed depending on your credit score and personal circumstances, or turned down altogether.
Frequently asked questions
How do 0% balance transfer credit cards work?
You switch the debt built up on another one or more credit cards – where typically interest is charged at around 18% to 20% (variable) – to a balance transfer card which offers zero interest for a set period.
The new card will need to be issued by a different banking provider. You can make multiple transfers from different cards, so long as it’s within the stated period (usually 30 to 90 days) and the total balance does not exceed 95% of your allocated credit limit.
Just like any other card application, you need to pass eligibility criteria and credit checks by the provider, and agree to make monthly repayments.
How can 0% balance transfer cards help?
When used in the right way, balance transfer cards can help prevent your debts from spiralling out of control, thanks to the 0% interest period.
By consolidating unsecured debt and paying no interest at all to the card provider, every penny you repay goes towards paying down the capital you owe, rather than going into the lender’s coffers.
This frees you up to be debt-free faster.
How do I choose the right 0% balance transfer card?
Most balance transfer cards charge a ‘balance transfer fee’ which can be anything between 1% and 3% of the amount of debt you move. Some don't charge a fee but, in this case, will normally carry a much shorter interest-free period.
Weigh up the length of time you realistically need to clear your debt against the size of the fee in order to get the best deal. If you had a debt of £5,000 for example, it could cost you as much as £150 to transfer the balance if the card was to charge the full 3%.
You could find a card with a lower, or even no fee. So long as you can afford the monthly payments to clear the debt, it would save money to go for a card with a shorter interest-free term.
And always shop around for the best deals.
Will I definitely be accepted for the 0% term?
Card providers are increasingly choosy about who they lend to and the best deals are ring-fenced for those with the cleanest credit scores. Bear in mind, if you do qualify, you might not be offered the full interest-free period that the credit card company advertises.
Credit card companies are only required to offer 51% of applicants the advertised interest rate, which means that the other 49% could be offered a higher rate or be rejected outright.
Equally, if you have a poorer credit score than most, you might be offered fewer months at 0% than advertised.
What are the downsides of 0% balance transfer cards?
They require planning to clear the balance by the end of the interest-free period, and discipline not to add to your balance in the meantime (the 0% only applies to debt moved from other cards – not to new borrowing, unless specified).
This is particularly important to remember if you’re tempted to use the card for withdrawing cash. Doing so attracts hefty fees and interest. You will be charged interest on the amount you withdraw from the day you take it out until you pay off the balance. There will also be a cash advance fee.
You should reserve taking out cash on your credit card for emergencies only.
What happens when the 0% period expires?
When the interest-free period comes to an end, ideally you will have paid off the debt. If you don’t manage to clear what you owe, make sure you apply for a new card and move the balance again to avoid any interest charges.
If you leave the debt on this same card, interest charges will kick in of around 20% but could be even higher.
It’s prudent to set up a direct debit so that you always repay at least the minimum monthly payment and preferably more.
If you miss a payment completely on a card with a zero interest period, not only will this affect your credit rating, you risk losing the 0% promotional offer. Should this happen, interest will start being charged.
