Best credit cards for balance transfers with good credit

If you have built up debt on a credit card or an overdraft, switching to a balance-transfer card with an interest rate of 0% can help save money.

With the Bank of England reporting that UK consumers borrowed twice as much in June than in May, now is a good time to ensure you’re not paying unnecessary interest.

This article lists the top balance transfer deals, including tips on how to best pay off a credit card balance.

We outline:

• The longest balance transfer with no fee: 24 months NO fee
• The longest balance transfer: 34 months but with a 2.88% fee
• How to get the most from a credit card
• Tips for qualifying for a credit card
• How our ratings work

The best credit cards for balance transfers

For anyone who has already built up a balance on a credit card, switching to an interest-free balance transfer card will help save a packet in interest charges.

This is because credit cards typically charge interest of over 20% a year.

Below, we give our top choices for balance-transfer cards – see here how we rate them.

Key features:

– 24-month balance-transfer period
– No balance-transfer fee
– 22.9% representative APR
– Only available to existing customers

NatWest’s no-fee balance transfer credit card offers 22 months interest free. This is the longest in the market for a card with no balance-transfer fee.

Meanwhile its representative APR – which is the interest rate that must be offered to at least 51% of customers – is a competitive 21.9%.

However, this deal is only available to existing NatWest customers – or customers of its sister brands RBS and Ulster Bank.

Key features:

– Up to 22-month balance-transfer period
– No balance transfer fee for some, though you could pay a 1% fee depending on your credit score
– 21.9% representative APR

Sainsbury’s Bank’s no balance-transfer fee credit card gets four stars in our ratings. It offers up to 21 months interest free. This is the second-longest in the market for a card with no balance-transfer fee.

The only reason it doesn’t get five stars is that it charges some customers a relatively high APR of up to 29.90% once customers have reached the end of their offer period.

The other thing to watch out for with the Sainsbury’s card is that both the fee and the interest-free period you’re offered will also depend on your credit score. So while some customers will be offered 22 months with no fee, others will be offered just 14 months and may also need to pay a fee of 1%.

For customer experience, Sainsbury’s Bank’s comes mid table – ranked 17th out of 30 in our Spring 2022 customer experience tables.

Key features:

– 21 month balance transfer period
– No balance transfer fee
– 21.9% representative APR

Santander’s Everyday card offers 21 months interest-free. This is one of the longest 0% periods on offer, and there is no balance transfer fee. That means that if you make your monthly payments and don’t use the card for anything else, you can borrow completely free of charge.

Furthermore, if you haven’t managed to pay off the balance by the time the introductory period ends, it has a lower representative APR than most cards – at 21.90%.

However, it’s worth bearing in mind that when it comes to customer experience, Santander’s credit cards rank 25th out of 30 in our Autumn 2021 ratings. They perform particularly poorly when it comes to transparency and complaints.

However, when it comes to customer happiness it’s ranked 22nd out of 30 credit card providers.

Key features:

– Up to 34-month balance transfer period
– 2.88% or 3.88% transfer fee (min £3)
– 21.90% representative APR

For those that need as long as possible to clear credit card debt, this could be the best option available. However, as this is an ‘up to’ offer, you could be accepted and offered just 14 months depending on your credit history.

Additionally, it’s worth bearing in mind that this card charges a fee to make a balance transfer of either 2.88% or 3.88% (minimum £3) of the amount being transferred.

Which fee you’ll pay depends on your credit score. If you can make do with a month less, it’s worth going with Santander’s card below which charges a lower fee.

After the interest-free period this card charges 21.9% representative APR.

Key features:

– 33-month balance transfer period
– 2.65% transfer fee (min £5)
– 21.90% representative APR

Santander’s 33-month everyday long-term balance transfer card offers another long interest-free period for those that need longer to clear a credit card balance. There is no ‘up to’, so successful applicants are guaranteed the full 33 months.

But it charges a 2.65% fee, so it’s not without cost. For example, if you transfer £1,000 it will cost you £26.50.

The interest rate charged after the introductory period finishes is 21.90% representative APR, around the same rate as other providers.

This is another good card if you need a long interest-free period.

Key features:

– 33 month balance transfer period
– 2.9% fee 
– APR of 22.9%
– 3 months 0% on purchases
– £25 cashback when you transfer £100+ within 60 days

NatWest’s Longer balance transfer card gives all accepted 33 months interest-free on transfers, charging a 2.9% fee.

However, you can earn £25 cashback if you sign up for the card before the end of November and transfer a balance of £100 or more within the first 60 days of card membership.

This card charges a rep APR of 22.9% after the 0% period, though some may pay up to 29.9% depending on credit history.

You can also get the same card, plus the £25 cashback offer, from RBS.

Key features:

– 32 month 0% balance transfer period
– 1.99% fee (minimum £5)
– APR of 21.9%

This credit card from M&S Bank offers a generous 32 months interest free balance transfer period, one of the longest available. There is a fee, but at 1.99% this is lower than rivals offering a similar balance transfer period.

The card also has a 0% interest on purchases in the first three months.

Another bonus is you get M&S points when you shop, which translate into M&S reward vouchers.

Key features:

– 30 months 0% period
– Balance transfer fee: 2.99% (minimum £5)
– 23.9% representative APR

HSBC is offering one of the longest 0% periods currently available on the market, although there is a fee of 2.99%.

Beware that HSBC sits towards the bottom end of our customer experience ratings – 27th out of 30 brands.

But with a long interest-free period and a competitive APR at the end of the offer period, the card gets three stars overall in our product ratings.

Key features:

– 15-month balance transfer period
– No balance transfer fee
– 22.9% representative APR

Barclaycard’s no fee platinum balance transfer card has the fourth longest 0% period of the fee-free cards – offering 15 months with no interest. It charges a fairly standard 22.9% rep APR if you’re still left with a balance to pay when your offer period comes to an end.

However, be aware that customers may be offered a shorter 0% period of 7 months and may be charged a higher rate of interest at 29.9%.

Barclaycard performs better in our customer experience ratings than Santander and Natwest. It ranked 11th out of 30 card brands in our Spring 2022 customer experience ratings.

In terms of customer experience, Bank of Scotland performs above average in all four areas of our analysis, and is ranked first place in our Spring 2022 customer experience ratings. It won a gold ribbon in for the eighth time in a row.  

How to get the most from a credit card

Credit cards can offer the convenience of an easy way to pay for goods and services – as long as the money can be paid back quickly.

But even for those who need to borrow money for the longer-term, credit cards can be a cheap way to do so. 

Some cards charge no interest on transferred balances for more than two and a half years.

That means people can spread the cost over several months if they need to and incur no charges.

But beware of the fees – as most balance transfer cards will charge an initial fee of up to 5% when you take out the card.

Should I get a personal loan or a credit card? We explain the difference.

The best way to pay off your credit card balance

Anyone with a large credit card balance – £1,000 or more – should plan to get rid of their balance and the potentially high interest charges the debt can attract.

Switching to an interest-free balance-transfer card with no fee will buy some time. But it’s crucial to use that time wisely. Reducing the debt over the interest-free period will help clear it before charges can mount up.

If that interest-free period is 24 months, for instance, and the debt is £3,600, paying £150 a month towards whittling the debt downwill clear it before interest charges kick in.

However, that only works for those who don’t use the card for new purchases during the interest-free period.

Anyone who does use their card will find the debt mounts up from that time as the interest-free element is only available on the balance that was originally transferred.

Failing to clear the debt can lead to a cycle where a new balance-transfer deal will need to be found at the end of the term, and so on.

Switching to an interest-free balance transfer card with no fee will buy some time but it’s crucial to use that time wisely.

Will I qualify for a credit card?

An application for a credit card will be turned down if the person applying has a low credit score.

A credit score is worked out by looking at someone’s loan history.

Anyone with no record of borrowing will have a low score.

Anyone who has a history of borrowing money and repaying it back on time will have a high score as it will show they can be trusted to manage debt.

A credit record will include a history of all personalloans, mortgages and credit cards used, as well as mobile phone deals.

Any late payments will be a black mark and reduce someone’s score.

A low rating will make it hard to get a credit card with an inexpensive APR or long interest-free period. And a particularly poor score could well lead to an applicant being rejected for a credit card altogether.

To qualify for the best deals, it’s essential to check your credit score and take steps to improve it.

There are three main credit-reference agencies in the UK: Experian, Equifax and TransUnion.

They allow consumers to check their reports without charge, and it is worth doing so before applying for a credit card.

Anyone with a low rating should take steps to improve it.

Find out more: Should I get a personal loan to build credit?

How can I improve my credit rating?

There are various things people can do to improve their score and, surprising, the main one is pretty easy.

• Registering on the electoral roll is essential for a decent credit score, and anyone who isn’t on the roll will be hard-pushed to be accepted for credit.
• Paying bills on time is essential and that includes mortgages, rent and utility bills. The longer the period of regular bill-paying, the higher the credit score.
• Having a credit card is also a good way to improve a credit score, as long as it is used regularly and paid off properly. It demonstrates to financial firms that people can cope with being in debt.

Lenders are looking for evidence that people may be a good risk as borrowers, and those with no credit history will find that adversely hits their credit score.

Bear in mind that applying and being rejected for a credit card will be a black mark on a credit record.

For that reason, it’s important to make use of what is known as “soft searches”. Some companies – such as comparison sites – allow consumers to “pre-apply” for a credit card, and this is in effect an eligibility check.

It gives consumers an indication as to whether a credit card company is likely to accept an application – without thatenquiry running the risk of leaving a black mark on their credit file.

Our independent ratings 

Our ratings are compiled by the independent research group Fairer Finance.

The product ratings look at the costs and benefits of credit cards.

Five-star-rated 0% balance-transfer credit cards have an interest-free period of at least 12 months, and charge no fee when a balance is transferred on to the card. They will have lower than average APRs once the offer period comes to an end.

The customer experience ratings are based on regular research among customers.

They take into account:

• Happiness and trust with organisations and products
• The degree of transparency of companies’ dealings with customers
• How well they cope with customer complaints

Do balance transfers hurt credit score?

What credit score is needed for balance transfer cards?

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