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The cost of living crisis means we all need to normalize our household finances.
A balance transfer credit card helps you manage your credit card debt (Image: Adobe)
The cost of living crisis means we all have to look more closely at our finances than ever before.
Credit cards should always be used with extreme caution, but credit cards help you build your finances and build your credit score.
But what is balance transfer and which 0% balance transfer card is the best value?
Here’s what you should know:
What is balance transfer?
Balance transfer is a way to manage your credit card debt.
Basically, it involves paying for one credit card using another credit card.
This usually works only if you paid a lot of interest on your original card to pay off your debt and your new card has a lower rate or no interest at all.
In this case, you will ultimately save money on paying off your debt, and you will be able to pay off your debt faster.
But if you have a large debt to pay off, the 0% balance transfer card offers the best deal and can save you hundreds of pounds.
Most high street banks allow you to transfer balances from one card to another for a one-time fee, but existing banks or the wider group of cards do not allow this (in most cases).
So, for example, if you have a NatWest credit card that you want to pay off, you cannot go to the Royal Bank of Scotland to get a balance transfer card.
How does the 0% balance transfer credit card work?
0% balance transfer cards tend to offer 0% interest for a specific period of time, but most charge a small fee for balance transfers.
As a rule of thumb, the longer the 0% rate stays fixed, the higher the balance transfer fee.
To determine which credit card is right for you, which do consumer groups choose? We recommend taking the amount you owe and dividing it by the amount you can afford to pay back in a month.
This calculation leaves you with the number of months it will take to pay off the debt.
Please note that it is important to pay the minimum repayment amount required by the card each month.
If it takes longer than 34 months to repay the debt (the maximum period currently offered to maintain the 0% interest rate), another balance transfer must be made at the end of the 0% interest rate transaction there is.
What’s the best 0% balance transfer card?
NationalWorld surveyed major consumer sites to see which 0% balance transfer cards are currently the most cost-effective.
Your personal circumstances (credit score, etc.) will determine which card you get. Therefore, we recommend that you check with your bank or moneylender to see if they are eligible.
Also, before signing up for a credit card, you should check the terms and conditions of the credit card.
Maximum 0% interest rate
- Virgin Money Balance Transfer Credit Card – 0% for 34 months (2.7% balance transfer fee), 21.9% annual interest
- Tesco Bank Balance Transfer credit card – 0% for 33 months (2.59% balance transfer fee), 21.9% annual interest
- Santander Everyday Long Term Balance Transfer Credit Card – 0% for 33 months (2.65% balance transfer fee), 21.9% annual interest
- HSBC Balance Transfer Credit Card Visa – 0% for 33 months (2.7% balance transfer fee), 21.9% annual interest
- Sainsbury’s Bank 33 Month Balance Transfer Credit Card – 0% for 33 months (2.89% balance transfer fee), 21.9% annual interest
- M&S Bank Transfer Plus credit card – 0% for 32 months (1.99% balance transfer fee), 21.9% annual interest
Cheapest zero-fee balance transfer card
- Santander All-in-One Credit Card – 0% for 26 months (no balance transfer fee), 23.7% annual interest
- Sainsbury’s Bank No Fee 21 Month Balance Transfer Credit Card – 0% for 21 Months (No Balance Transfer Fee), 20.9% Annual Interest
- Santander Everyday No Debit Fees Credit Card – 0% for 18 months (no debit fees), 20.9% annual interest
- Barclaycard Platinum Balance Transfer – 0% for 15 months (no balance transfer fee), 21.9% annual interest
- Virgin Money Balance Transfer Credit Card – 0% for 15 months (no balance transfer fees), 23.9% annual interest
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