Calculate how much you could save by transferring your credit card balance to a 0% deal. Compare the transfer fee vs interest saved over the promotional period.
A balance transfer lets you move existing credit card debt to a new card with a lower (often 0%) promotional interest rate. During the 0% period, every penny you pay reduces the principal balance — not interest. This makes it far easier to clear debt quickly.
UK balance transfer deals typically last 12–36 months with fees of 1–3% of the amount transferred. The market is competitive, with cards from Barclaycard, MBNA, Virgin Money, Halifax, and NatWest regularly topping comparison tables.
| Deal Length | Typical Fee | Best For |
|---|---|---|
| 12 months | 0–1% | Small balances you can clear quickly |
| 18–20 months | 2–2.5% | Medium balances with disciplined repayments |
| 24–30 months | 2.5–3% | Larger balances needing more time |
| 30–36 months | 3–3.5% | Large balances, lower monthly payments |
On a typical £3,000 balance at 24.9% APR, you pay around £747 in interest per year. By transferring to a 0% deal for 24 months with a 3% fee (£90), your net saving is approximately £657 if you make no repayments — and far more if you use the period to clear the balance. The exact saving depends on your balance, current rate, deal length, and fee.
In almost all cases, yes. A typical 3% fee on a £3,000 balance costs £90. At 24.9% APR, you'd pay £747 in interest in one year alone. Even on a 12-month 0% deal the saving is £747 minus £90 = £657 net. The only time a fee isn't worth it is if you can clear the balance within a few months at your current rate.
When the promotional period ends, any remaining balance reverts to the card's standard rate, typically 20–30% APR. You should aim to clear the balance before the deal expires, or arrange another balance transfer. Set a calendar reminder 2 months before expiry to give yourself time to act.
Compare: (1) length of 0% period — longer is better if you need time to repay, (2) transfer fee — typically 1–3%, lower is better if you plan to repay quickly, (3) eligibility — check representative APR and whether you'll be accepted, (4) standard rate after deal ends. Use eligibility checkers that do soft searches to avoid harming your credit score.
Applying for a balance transfer card involves a hard credit search, which temporarily reduces your score. However, reducing your credit utilisation and making on-time payments will improve your score over time. The net effect is usually positive within 3–6 months if you manage the card well.
Data verified against official UK government sources. Last checked April 2026.