How to Move Credit Card Debt to 0% Without Making It Worse

A balance transfer is a mechanism by which an outstanding credit card debt is moved from one credit card to another, typically to take advantage of a lower or 0% interest rate for a defined promotional period. The new card provider pays off the debt on the old card directly, and the debt is then owed to the new provider under the terms of the new credit agreement.

Balance transfer credit cards are regulated consumer credit agreements under the Consumer Credit Act 1974 (as amended). The Financial Conduct Authority's Consumer Credit sourcebook (CONC) sets out specific conduct rules for credit card providers, including rules on promotional rates, minimum repayments, and treatment of customers in financial difficulties.

This guide explains how the balance transfer process works, the rules governing it, and the points where things can go wrong — so that the mechanics are clear before any decision is made.

A balance transfer moves existing credit card debt from one card to another. The new provider pays the old provider directly. If the new card has a 0% promotional period, no interest is charged on the transferred balance during that period.

However, the transfer itself comes with rules, fees, and deadlines that can result in unexpected costs if they are not understood. The promo period start and the qualifying transfer window are set by the card's terms; many cards require the transfer to be made within a set number of days of opening, and the 0% clock may run from account opening or from the transfer date depending on the provider. A one-off fee, typically between 1% and 3.5% of the amount transferred, is usually charged and added to the balance. Missing a minimum repayment can result in the loss of the promotional rate entirely. And any balance remaining when the promotional period ends begins accruing interest at the card's standard variable rate.

Understanding these mechanics is essential to avoiding a situation where the transfer creates new costs rather than reducing existing ones.

The balance transfer process involves several distinct stages, each governed by specific rules.

Application and credit assessment

Applying for a balance transfer credit card triggers a hard credit search, which is recorded by UK credit reference agencies and is visible to other lenders. Hard search footprints are visible for a period that varies by credit reference agency and lender — often around 12 months, sometimes longer. Multiple hard searches in a short period may negatively affect credit scores.

Many UK credit card providers offer eligibility checkers that use soft credit searches to indicate the likelihood of acceptance without affecting the applicant's credit score. Soft searches are visible only to the consumer. However, proceeding to a full application after an eligibility check will trigger a hard search.

The transfer itself

Once an application is approved, the new provider pays off the specified balance on the old card directly. The balance then appears on the new card. In most cases, this process takes between one and seven working days from the request, though timeframes vary by provider and no regulatory requirement specifies a maximum period. It is important to continue making payments on the old card until the transfer has been confirmed as complete.

The promotional period

Balance transfer credit cards in the UK market offer an introductory period during which no interest is charged on the transferred balance. After this period ends, a standard variable interest rate applies to any remaining balance. The point at which the promotional period begins varies by provider — some start the 0% clock from the date of account opening, while others start it from the date of transfer. Most cards require the transfer to be completed within a set number of days of account opening (typically 60 to 90 days) to qualify for the promotional rate. The specific terms are set out in each card's agreement.

Fees

Most balance transfer cards charge a one-off transfer fee, typically between 1% and 3.5% of the amount transferred, though some products offer a 0% fee. Some providers also charge minimum fee amounts. The fee is typically added to the transferred balance.

Repayment during the promotional period

A minimum monthly repayment must be made throughout the promotional period. Minimum payments are set by the card's terms — typically a percentage of the balance with a cash minimum — and providers must set and communicate them in line with FCA rules. Providers may set their own minimums above the regulatory floor.

Several regulatory and contractual rules govern the balance transfer process. These are set out below.

• Transfer window. Balance transfers must be requested within a specified period following account opening to qualify for the promotional rate. This window is typically 60 to 90 days, though exact timeframes vary by provider.
• Transfer amount limits. The balance transfer amount cannot exceed a specified percentage of the credit limit. In most cases, providers allow transfers of up to 90–95% of the available credit limit, though this may vary. Minimum transfer amounts typically apply, commonly between £100 and £250.
• Promotional period duration. The 0% promotional periods available in the UK market range from approximately 6 months to 35 months, depending on the provider and product. As of late 2024 and early 2025, the longest available offers were up to 35–36 months. The actual period offered depends on individual credit assessment.
• Minimum repayment calculation. Minimum payments are set by the card's terms — typically a percentage of the outstanding balance with a cash minimum floor — and providers must set and communicate them in line with FCA rules (CONC 6.7). The FCA requires that minimum repayments are structured to ensure some capital repayment occurs each month.
• Persistent debt thresholds. FCA rules require credit card providers to monitor accounts for persistent debt — defined as a situation where the customer has paid more in interest, fees, and charges than they have repaid of the principal balance over any 18-month period. This triggers a mandatory communication sequence:
  • At 18 months: the provider must contact the customer encouraging increased repayments.
  • At 27 months: a reminder is sent.
  • At 36 months: the provider must take steps aimed at getting the balance repaid within a reasonable period; what constitutes "reasonable" depends on individual circumstances and FCA expectations. Card suspension may occur if the customer does not respond or engage, though suspension is not automatic and providers must consider individual circumstances. The FCA expects forbearance where customers cannot afford repayments.
• Cooling-off rights. Under Section 66A of the Consumer Credit Act 1974, consumers have a 14-day cooling-off period for regulated credit agreements.

Several aspects of the balance transfer process are frequently misunderstood.

The promo period start date and transfer window vary by provider

This is one of the most common sources of confusion. Some cards start the 0% clock from the date the account is opened, others from the date of transfer. Most require the transfer to be completed within a set window (typically 60 to 90 days of opening). The card's terms and conditions set out exactly when the promotional period begins and how long the transfer window lasts, so these details are worth checking before any application.

The advertised 0% period may not be the period offered

Some providers advertise balance transfer cards with "up to" a specified number of months at 0%, but the actual period offered depends on individual credit assessment and may be shorter than advertised. For example, a card advertised as "up to 24 months" may result in an offer of only 12 months for some applicants. This is only confirmed after the application, which involves a hard credit search.

Balance transfer fees may also vary

Some providers advertise a range of possible balance transfer fees, with the actual fee determined only after credit assessment. This means the cost of the transfer may not be known until after the application has been submitted and a hard search has been recorded.

New purchases on a balance transfer card may incur interest

The 0% rate typically applies only to transferred balances, not to new purchases. Unless the card also has a separate 0% purchase offer, new spending accrues interest from the transaction date if the total balance is not paid in full.

Cash advances are treated differently

Using a balance transfer card for cash withdrawals typically incurs immediate interest charges and a cash advance fee, regardless of the 0% balance transfer offer.

There is no universal requirement for an end-of-promo reminder

While some providers do send reminders as the promotional period approaches its end, practices vary and there is no general statutory obligation to do so. The customer is responsible for being aware of the end date as set out in the card's terms.

Loss of promotional rate through missed payments

Most card terms allow withdrawal of the promotional 0% interest rate if the minimum required monthly repayment is missed. This is a contractual provision and must also comply with FCA fair-treatment requirements. Providers may also charge default fees.

Section 75 protection applies to purchases, not to transfers

Section 75 of the Consumer Credit Act 1974 makes credit card providers jointly and severally liable with merchants for breaches of contract or misrepresentations on purchases where the cash price of a single item is between £100 and £30,000. This protection applies even if only a deposit was paid by credit card. However, Section 75 does not apply to cash advances, money transfers, or gambling transactions. Third-party payment processors may also affect Section 75 coverage depending on whether the debtor-creditor-supplier chain is preserved. Section 75 does not apply where the purchase price falls outside the £100–£30,000 range.

Credit limit buffers and transfer amounts

Providers typically require a buffer between the transfer amount and the credit limit. When the transfer fee is added to the balance, the total must remain within the credit limit. This means the effective maximum transfer amount is lower than the credit limit itself.

Variable APR after the promotional period

The specific standard variable APR that applies after the 0% period ends varies by provider and individual circumstances. No single figure applies universally.

In practical terms, the balance transfer process involves a sequence of events, each with potential consequences.

A hard credit search is recorded at the point of application, which may temporarily affect credit scores. The promotional period begins running according to the card's terms — from account opening or from the transfer date, depending on the provider. The transfer itself takes a variable amount of time to complete, during which payments must continue on the old card. A fee is charged on the transferred amount and added to the balance on the new card.

Throughout the promotional period, minimum repayments must be made each month. These are set by the card's terms and must comply with FCA rules designed to ensure that some capital is repaid each month. Missing a payment risks losing the promotional rate.

When the promotional period ends, any remaining balance begins accruing interest at the card's standard variable rate. There is no universal requirement for an end-of-promo reminder; practices vary by provider.

For accounts that fall into persistent debt — where the customer pays more in interest, fees, and charges than principal over 18 months — the FCA requires providers to take escalating steps. These culminate at 36 months, when the provider must offer options to clear the balance within a reasonable period. The FCA expects providers to show forbearance where customers are unable to afford repayments.

• Mechanism: A balance transfer moves existing credit card debt from one provider to another, with the new provider paying off the old debt directly.
• Timings: The 0% promotional period may run from account opening or from the date of transfer, depending on the provider. Most cards require the transfer to be completed within a set window (typically 60 to 90 days of opening) to qualify for the promotional rate.
• Fees: Transfer fees typically range from 1% to 3.5% of the amount transferred and are added to the balance.
• Eligibility: The actual promotional period and fee offered may differ from advertised figures, as both can depend on individual credit assessment. This is only confirmed after a hard credit search has been recorded.
• Risks: Missing a minimum payment may result in the loss of the 0% rate. The 0% rate applies to transferred balances only. New purchases are generally subject to different, higher rates.
• End of Promo: When the promotional period ends, any remaining balance accrues interest at the card's standard variable rate. There is no universal requirement for providers to send an advance reminder.
• Regulation: FCA persistent debt rules require providers to contact customers at 18 months and take escalating action through to 36 months if the customer has paid more in charges than in principal repayment.