A balance transfer is a process where one opens a new credit card account and transfers a balance from an existing credit card over to the new credit card account. Users can only benefit if the new account has a lower interest rate on the balance.

Example.

John Smith owes £1000.00 on an existing credit card at a rate of 14.9% APR

Jonh then opens a new account which offers 12 months interest free on balance transfers.

John will then be able to transfer the outstanding balance over to the new account and benefit from having no interest fees from the credit card company.

If John pays the balance off within 12 months this process will have saved him upto £149.00.

Balance transfers cannot benefit everyone as individual circumstances vary. You can find all the relevant balance transfer information on most application pages for credit cards on our website.