Which debts can I cover with a 0% balance transfer credit card?

28 April2011

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The general idea of a 0% balance transfer credit card is that it doesn`t charge interest on debts transferred across from other cards. This effectively means you`re repaying your debts interest-free - or, if you wish, you can take a break from making repayments (beyond your minimum monthly payments, of course) without incurring any interest.

This is all good and well, but what if you have other debts you want to pay off? Some cards may allow you to pay off certain other debts without paying interest on the balance, but most will only allow you to transfer balances from other credit cards.

For this reason, a 0% balance transfer credit card could be great for managing existing credit card debts, but may not help so much with consolidating other debts.

How a 0% balance transfer credit card works

If you plan to use a 0% balance transfer credit card, you`ll have to let the credit card provider know which debts you intend to transfer across.

In actual fact, the credit card provider will simply be paying off those debts on your behalf, and you`ll then be responsible for paying the total amount back to your new lender.

Although repayments are interest-free, there will usually be a balance transfer fee of around 2-3% of the balance you`re transferring.

What can I do about my other debts?

If you have non-credit card debts that you can`t pay off with a 0% balance transfer card, you may be better off looking at alternative solutions. For example, a debt consolidation loan can be used to pay off any type of debt. However, you will almost certainly pay interest on a loan.

Alternatively, you may be better off with a low-interest credit card, if your credit rating is good enough to obtain such a deal. These cards sometimes offer rates as low as (or lower than) personal loan rates, and the repayment criteria will be more flexible since it`s a credit card.

Compare the best credit card deals with our free comparison table.

Review our latest credit card best-buys

Product	Transfer rate & period	New Purchases rate & period	Representative APR
Barclaycard Platinum Credit Card with Extended Balance Transfer	0% 26 mths 3.5% Fee	0% 6 mths	18.9% (variable)
	Representative example: With this credit card the representative APR is 18.9% (variable) based on an interest rate of 18.9% (variable), transfer fees of 3.5% and a credit limit of £1200.
Barclaycard Platinum Credit Card with Balance Transfer	0% 25 mths 2.8% Fee	0% 6 mths	18.9% (variable)
	Representative example: With this credit card the representative APR is 18.9% (variable) based on an interest rate of 18.9% (variable), transfer fees of 2.8% and a credit limit of £1200.
Tesco Bank Clubcard Credit Card for balance transfers	0% 25 mths 2.9% Fee	0% 3 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.9% (variable), transfer fees of 2.9% and a credit limit of £1200.
Halifax Balance Transfer Credit Card	0% 25 mths 3% Fee	0% 3 mths	18.9% (variable)
	Representative example: With this credit card the representative APR is 18.9% (variable) based on an interest rate of 18.95% (variable), transfer fees of 3% and a credit limit of £1200.
NatWest Platinum	0% 24 mths 2.9% Fee	0% 6 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 2.9% and a credit limit of £1200.
Royal Bank of Scotland Platinum	0% 24 mths 2.9% Fee	0% 6 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 2.9% and a credit limit of £1200.
MBNA Platinum Credit Card	0% 23 mths 2.5% Fee	0% 3 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.9% (variable), transfer fees of 2.5% and a credit limit of £1200.
Fluid Balance Transfer Card	0% 23 mths 2.89% Fee	0% 3 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.9% (variable), transfer fees of 2.89% and a credit limit of £1200.
MBNA Credit Card	0% 22 mths 2% Fee	0% 3 mths	16.9% (variable)
	Representative example: With this credit card the representative APR is 16.9% (variable) based on an interest rate of 16.9% (variable), transfer fees of 2% and a credit limit of £1200.
Lloyds TSB Platinum MasterCard	0% 21 mths 1.5% Fee	0% 3 mths	17.9% (variable)
	Representative example: With this credit card the representative APR is 17.9% (variable) based on an interest rate of 17.95% (variable), transfer fees of 1.5% and a credit limit of £1200.
Nationwide Building Society Credit Card	0% 20 mths 1.55% Fee	0% 3 mths	15.9% (variable)
	Representative example: With this credit card the representative APR is 15.9% (variable) based on an interest rate of 15.9% (variable), transfer fees of 1.55% and a credit limit of £1200.
We provide a representative range of products on competitive terms and do not act exclusively for any credit provider. Credit limits may vary depending on your circumstances.

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