{"id":858,"date":"2023-05-01T08:00:00","date_gmt":"2023-05-01T08:00:00","guid":{"rendered":"https:\/\/www.drafty.co.uk\/blog\/?p=858"},"modified":"2023-04-28T12:26:25","modified_gmt":"2023-04-28T12:26:25","slug":"balance-transfer","status":"publish","type":"post","link":"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/","title":{"rendered":"What Is a Balance Transfer? | Learn More"},"content":{"rendered":"\n<p><strong>Owing money on a credit card can be an expensive business!<\/strong> High interest rates can easily push the borrowers into unmanageable debt. This is where balance transfers could come into play. They can help clear debt in more ways than one.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#what_is_a_balance_transfer\" >What is a balance transfer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#what_is_a_balance_transfer_on_a_credit_card\" >What is a balance transfer on a credit card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#how_does_a_balance_transfer_work\" >How does a balance transfer work?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#what_are_the_pros_and_cons_of_a_balance_transfer\" >What are the pros and cons of a balance transfer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#why_is_a_balance_transfer_useful_for_me\" >Why is a balance transfer useful for me?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#how_much_money_can_i_save_with_a_balance_transfer\" >How much money can I save with a balance transfer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#what_should_i_consider_before_applying_for_a_balance_transfer\" >What should I consider before applying for a balance transfer?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#1_how_long_will_the_low_interest_rate_last_on_the_balance_transfer\" >1. How long will the low interest rate last on the balance transfer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#2_can_you_afford_to_pay_off_your_balance_during_the_low_rate_period\" >2. Can you afford to pay off your balance during the low rate period?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#3_what_is_the_balance_transfer_fee\" >3. What is the balance transfer fee?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#4_what_if_the_credit_limit_on_your_new_card_isnt_high_enough\" >4. What if the credit limit on your new card isn\u2019t high enough?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#how_do_i_choose_the_right_balance_transfer_for_me\" >How do I choose the right balance transfer for me?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#what_different_types_of_balance_transfer_are_there\" >What different types of balance transfer are there?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#1_a_long_balance_transfer\" >1. A long balance transfer<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#2_a_short_balance_transfer\" >2. A short balance transfer<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#how_do_i_do_a_balance_transfer\" >How do I do a balance transfer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#how_can_i_make_the_most_out_of_a_balance_transfer\" >How can I make the most out of a balance transfer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#what_alternatives_to_balance_transfers_are_there\" >What alternatives to balance transfers are there?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#1_you_can_take_out_a_personal_loan\" >1. You can take out a personal loan<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#2_you_can_settle_your_credit_card\" >2. You can settle your credit card<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#3_get_some_advice_on_how_to_deal_with_your_debt\" >3. Get some advice on how to deal with your debt<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#faqs_%e2%80%93_balance_transfers\" >FAQs &#8211; Balance transfers<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#how_long_does_it_take_for_the_balance_to_transfer\" >How long does it take for the balance to transfer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#is_a_balance_transfer_available_on_my_credit_card\" >Is a balance transfer available on my credit card?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#how_much_money_can_i_transfer\" >How much money can I transfer?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#does_transferring_a_balance_from_my_credit_card_affect_my_credit_score\" >Does transferring a balance from my credit card affect my credit score?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.drafty.co.uk\/blog\/balance-transfer\/#does_drafty_give_you_a_credit_card\" >Does Drafty give you a credit card?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_is_a_balance_transfer\"><\/span><strong>What is a balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you take the balance of one debt and transfer it to another account, you\u2019re doing a \u2018balance transfer\u2019. The main reasons you\u2019d want to do this are:<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li>To pay a lower rate of interest on your debt<\/li>\n\n\n\n<li>To bring all your debts under one roof to make them easier to manage<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_is_a_balance_transfer_on_a_credit_card\"><\/span><strong>What is a balance transfer on a credit card?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Shifting your balance from one credit card to another is where you\u2019re most likely to use a balance transfer<strong>. It\u2019s an easy way to avoid paying high interest rates on your credit card<\/strong>. Some cards offer 0% on your balance transfer for a limited time which can really help you get on top of your debts.<\/p>\n\n\n\n<p>Be aware that, although you may be offered a low or 0% interest rate, the transfer might not be free. <strong>You could be charged a transfer fee<\/strong>. This is usually a percentage of the balance you\u2019re transferring.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_does_a_balance_transfer_work\"><\/span><strong>How does a balance transfer work?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>1. <strong>The first step is to take out a credit card that offers a lower interest than your existing one<\/strong>:<\/p>\n\n\n\n<p>It\u2019s best if you can take out a card that offers 0% interest. If you don\u2019t qualify for a 0% balance transfer card, the next best thing is to go for one that has a lower rate than the one you\u2019re already paying.<\/p>\n\n\n\n<p><strong>2. Do the balance transfer:<\/strong><\/p>\n\n\n\n<p>When you go through your new credit card application, they may ask for the balances you want to transfer. If they do, they\u2019ll do the transfer for you once they approve your application. If they don\u2019t, you should be able to easily make the balance transfer yourself<strong>.<\/strong><\/p>\n\n\n\n<p><strong>3. Stop using your old credit card:<\/strong><\/p>\n\n\n\n<p>Just because you\u2019ve reduced your balance on your old credit card to \u00a30, doesn\u2019t mean you should spend on it again! The reason for doing a balance transfer is to pay off your debt, not to get into more of it.<strong> &nbsp;<\/strong><\/p>\n\n\n\n<p><strong>4. Make a note of when the low interest rate on the new credit card ends:<\/strong><\/p>\n\n\n\n<p>Remember that when the special rate you\u2019ve got on your new card ends, the interest rate will be hiked up. <strong>Have a plan of what you\u2019re going to do when this happens. Either:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Clear your debt before the low interest rate period end. You can do this by setting a Direct Debit to repay the balance over the interest free period<\/li>\n\n\n\n<li>When the low rate ends, move your balance to another low interest rate offer on another card<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_are_the_pros_and_cons_of_a_balance_transfer\"><\/span><strong>What are the pros and cons of a balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Pros of doing a balance transfer<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Cons of doing a balance transfer<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">All your debts can be brought into one place when you transfer them all onto one credit card.<\/td><td class=\"has-text-align-center\" data-align=\"center\">When you do a balance transfer, a fee will be charged. This can be added to your debt.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Paying less interest means you save money.<\/td><td class=\"has-text-align-center\" data-align=\"center\">If you miss one of your payments during the low rate period, the low interest rate could be removed.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">Paying less interest means you can pay off your debt faster.<\/td><td class=\"has-text-align-center\" data-align=\"center\">The interest rate will go up once the low rate period ends.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Repaying your new card on time can <a href=\"https:\/\/www.drafty.co.uk\/blog\/ways-to-build-your-credit-rating\/\" target=\"_blank\" rel=\"noreferrer noopener\">help your credit score<\/a>.<\/strong> And by not using your old credit card, you show that you\u2019re in control of your money as you\u2019re not using all your available credit.<\/td><td class=\"has-text-align-center\" data-align=\"center\">Having cleared your existing credit card, it\u2019s easy to start spending on it again. This\u2019ll get you into even more debt.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"why_is_a_balance_transfer_useful_for_me\"><\/span><strong>Why is a balance transfer useful for me?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A balance transfer could be useful for you because it can help you to manage your debts. By moving your balance onto a card with little or no interest, you can pay down your debt faster.<\/p>\n\n\n\n<p>A balance transfer is also useful for bringing all your debts into one account. It makes it easier to manage when you\u2019ve got just one account to pay instead of 2 or 3.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_much_money_can_i_save_with_a_balance_transfer\"><\/span><strong>How much money can I save with a balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can save money with a balance transfer, but how much depends on two things.<\/p>\n\n\n\n<p><strong>1. The balance transfer fee<\/strong><\/p>\n\n\n\n<p>If the balance transfer fee is high, it may not be worth doing the transfer. For example, let\u2019s say your transfer fee is 10%. If the interest on your existing card is 10%, then it\u2019s not worth doing. In this case, a balance transfer won\u2019t save you any money.<\/p>\n\n\n\n<p><strong>2. The difference in the interest rates between the old credit card and the new one<\/strong><\/p>\n\n\n\n<p>The interest rate on the new card may not be 0%. If it\u2019s just a lower interest rate, you\u2019ll have to work out if it\u2019s worth transferring your balance. Once you add the transfer fee it might not be any cheaper than what you\u2019re already paying.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_should_i_consider_before_applying_for_a_balance_transfer\"><\/span><strong>What should I consider before applying for a balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are a few things to consider before applying for a balance transfer.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_how_long_will_the_low_interest_rate_last_on_the_balance_transfer\"><\/span><strong>1. How long will the low interest rate last on the balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>The lower interest rate you\u2019re offered on the new card won\u2019t stay at that rate forever. You need to make sure you know how long it\u2019ll last. As soon as the low rate period ends, the interest rate will jump up.<\/p>\n\n\n\n<p><strong>Balance transfer credit card companies offer low interest rates for different lengths of time<\/strong>. It\u2019s worth shopping around to get the balance transfer card that suits you.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_can_you_afford_to_pay_off_your_balance_during_the_low_rate_period\"><\/span><strong>2. Can you afford to pay off your balance during the low rate period?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Clearing your debt is the best thing to do. While you\u2019ve got less interest to pay, more of your money is going towards reducing your debt. That\u2019s why it\u2019s a good idea to pay off as much of your balance as you can during the low interest period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_what_is_the_balance_transfer_fee\"><\/span><strong>3. What is the balance transfer fee?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>You don\u2019t want the balance transfer fee to be more than the interest on your existing card. Find out what the fee is before you apply for the new credit card. The balance transfer fee will be a percentage of the balance you\u2019re transferring.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_what_if_the_credit_limit_on_your_new_card_isnt_high_enough\"><\/span><strong>4. What if the credit limit on your new card isn\u2019t high enough?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If the credit limit on your new card isn\u2019t enough to transfer all your existing balance, you have options.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Apply for another credit card to transfer the remaining balance onto it<\/li>\n\n\n\n<li>Pay off what\u2019s left on your old credit card by finding ways to <a href=\"https:\/\/www.drafty.co.uk\/blog\/how-to-make-money-from-a-side-hustle\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>make some extra cash<\/strong><\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_do_i_choose_the_right_balance_transfer_for_me\"><\/span><strong>How do I choose the right balance transfer for me?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>To choose the right balance transfer for you, choose the credit card company who you\u2019re eligible to apply with. <strong>Most credit card companies will let you do an eligibility check before you apply<\/strong>. This tells you how likely it is that your application will be approved.<\/p>\n\n\n\n<p>You can also find out which credit cards you\u2019re most likely to be accepted for by searching for such websites online on search engines like Google. Once you know which cards you can choose from, pick the one with the best balance transfer deal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_different_types_of_balance_transfer_are_there\"><\/span><strong>What different types of balance transfer are there?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>There are two main types of balance transfer \u2013 long or short. The length of time you get the low interest rate on your balance transfer decides whether it\u2019s long or short.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_a_long_balance_transfer\"><\/span><strong>1. A long balance transfer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you have a long balance transfer, you\u2019ll get the low interest rate over a long period. With some credit cards this can be for 30 months. This is helpful as it gives you more time to pay back your debt. The only thing to watch out for are the transfer fees. These tend to be higher on long balance transfers.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_a_short_balance_transfer\"><\/span><strong>2. A short balance transfer<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you have a short balance transfer, you\u2019ll only have the low interest rate for a short period. This is a good option if you\u2019ve got a small balance to transfer and can pay it back quickly. Short balance transfers tend to have lower transfer fees.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_do_i_do_a_balance_transfer\"><\/span><strong>How do I do a balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Doing a balance transfer is easy to do.<\/p>\n\n\n\n<ol class=\"wp-block-list\" type=\"1\">\n<li><strong>Find out what the balance is on the card you want to clear<\/strong>. Then work out how much you can afford to pay back each month. That way you\u2019ll have an idea of which balance transfer card suits you best.<\/li>\n\n\n\n<li><strong>Check which balance transfer credit cards you\u2019re eligible to apply for<\/strong>. Choose the one with the best terms for you.<\/li>\n\n\n\n<li><strong>When you apply for your new card, the credit card company may do the transfer for you<\/strong>. You just have to give them the details of your existing card. Otherwise, the new card will give you clear instructions on how to transfer your balance.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"how_can_i_make_the_most_out_of_a_balance_transfer\"><\/span><strong>How can I make the most out of a balance transfer?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>You can make the most out of a balance transfer by following these tips.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Put a reminder in your calendar just before the low interest rate is going to end<\/strong>. That way you know when you have to move your balance again.<\/li>\n\n\n\n<li><strong>Make all your monthly payments on the new card when they\u2019re due<\/strong>. If you miss any, you may lose the low interest rate.&nbsp;<\/li>\n\n\n\n<li><strong>If you can, pay off everything you owe before the interest rate goes back up<\/strong>.<\/li>\n\n\n\n<li><strong>Some balance transfer cards also offer 0% interest on any purchases you make<\/strong>. If you have a card that gives you this offer, check how long they offer it for. The low rate period on purchases may not be the same as the low rate period on your balance transfer.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"what_alternatives_to_balance_transfers_are_there\"><\/span><strong>What alternatives to balance transfers are there?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A balance transfer isn\u2019t your only option for paying off your credit card. There are other options you can try.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_you_can_take_out_a_personal_loan\"><\/span><strong>1. You can take out a personal loan<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you want to find a way of paying less interest, personal loans are an option. But the interest rate you\u2019re offered on a loan depends on your credit score. If you haven\u2019t got a very <strong><a href=\"https:\/\/www.drafty.co.uk\/blog\/good-credit-score\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.drafty.co.uk\/blog\/good-credit-score\/\" rel=\"noreferrer noopener\">good credit rating<\/a><\/strong>, you may be better off keeping your credit card debt where it is.<\/p>\n\n\n\n<p>If you can get a better rate on a personal loan, it\u2019ll help you manage your repayments. That\u2019s because the monthly payments are fixed at the same amount. This makes it easier to budget and you know how many payments you have to make until it\u2019s paid off.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_you_can_settle_your_credit_card\"><\/span><strong>2. You can settle your credit card<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Using your savings to clear your debts is worth doing. You\u2019re likely to find that the interest your savings earn is less that the interest you\u2019re paying on your credit card.<\/p>\n\n\n\n<p>You could try offering the credit card company an amount that\u2019s a bit lower than your balance. But if they accept your offer and close your account, it\u2019ll show up on your credit file. This\u2019ll have an impact on your credit score, so only do this as a last resort.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_get_some_advice_on_how_to_deal_with_your_debt\"><\/span><strong>3. Get some advice on how to deal with your debt<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It\u2019s easy to get into too much credit card debt. If that\u2019s happened to you and you can\u2019t keep on top of your repayments, get help. <strong>There are agencies in the UK, that\u2019ll give you advice for free<\/strong>. Here are a few for you to try.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.moneyhelper.org.uk\/en\" target=\"_blank\" rel=\"noopener\">Moneyhelper<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.stepchange.org\/\" target=\"_blank\" rel=\"noopener\">Stepchange<\/a><\/li>\n\n\n\n<li><a href=\"https:\/\/www.citizensadvice.org.uk\/\" target=\"_blank\" rel=\"noopener\">Citizens Advice Bureau<\/a><\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"faqs_%e2%80%93_balance_transfers\"><\/span><strong>FAQs &#8211; Balance transfers<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1682684555391\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"how_long_does_it_take_for_the_balance_to_transfer\"><\/span>How long does it take for the balance to transfer?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Balance transfers are pretty quick, they usually complete within a couple of days. If you\u2019ve done a balance transfer and it hasn\u2019t gone through after 10 working days, get in touch with your lender. While you\u2019re waiting for the transfer to happen, keep up your payments on your old credit card.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1682684569362\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"is_a_balance_transfer_available_on_my_credit_card\"><\/span>Is a balance transfer available on my credit card?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You\u2019ll need to check with your credit card company to find out if a balance transfer is available on it. You\u2019re more likely to be offered a balance transfer on your existing card if you:<br \/>1. Owe below your credit limit<br \/>2. Manage your repayments well<br \/>3. Don\u2019t want to transfer balances between cards that are both with the same bank<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1682684597844\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"how_much_money_can_i_transfer\"><\/span>How much money can I transfer?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>You\u2019ll only be able to transfer balances up to your credit limit. Some credit cards companies won\u2019t let you transfer more than 90% of your credit limit, so check this first. The minimum amount you can transfer is around \u00a3100.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1682684606525\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"does_transferring_a_balance_from_my_credit_card_affect_my_credit_score\"><\/span>Does transferring a balance from my credit card affect my credit score?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Transferring a balance from your credit card won\u2019t affect your credit score. <strong>But when you apply for a new credit card, your application will show up on your credit file.<\/strong> This\u2019ll have an effect on your credit score so apply for one you\u2019ve got a good chance of being approved on.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1682684617420\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"does_drafty_give_you_a_credit_card\"><\/span>Does Drafty give you a credit card?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No, Drafty doesn\u2019t give you a credit card but we do give you a line of credit. The difference is that instead of having a card, we transfer the cash to your bank when you need it once approved for a credit line. Find out more about our <a href=\"https:\/\/www.drafty.co.uk\/credit-line\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.drafty.co.uk\/credit-line\/\" rel=\"noreferrer noopener\">line of credit<\/a> here.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n<p><strong>Disclaimer:<\/strong> The content in this article is for information purpose only. Please check with your respective bank before doing a balance transfer. Any external links which are linked in this article are for reference only. We are not affiliated to any of the external parties linked here.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Owing money on a credit card can be an expensive business! High interest rates can easily push the borrowers into unmanageable debt. This is where balance transfers could come into play. They can help clear debt in more ways than one. What is a balance transfer? If you take the balance of one debt and [&hellip;]<\/p>\n","protected":false},"author":47,"featured_media":859,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":{"0":"post-858","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-research"},"_links":{"self":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/858","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/users\/47"}],"replies":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=858"}],"version-history":[{"count":2,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/858\/revisions"}],"predecessor-version":[{"id":861,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/858\/revisions\/861"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/media\/859"}],"wp:attachment":[{"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.drafty.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}