UK Credit Cards
Balance Transfer Fees UK Explained: How to Work Out What You Really Pay
A percentage fee on a large balance is a large number. Price it against the interest you are stopping.
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- Typical fee
- 2%-3.5%, 5-10 pound minimum
- On 8,000 pounds at 3%
- 240 pounds
- Interest at 22% APR
- About 147 pounds a month
- Break-even at 3%
- About seven weeks
The fee is charged per transfer
Every balance moved is charged separately. One transfer of 8,000 pounds is cheaper than three of 2,667.
Compare against monthly interest
Divide the fee by the interest you currently pay each month. Seven weeks of break-even is fine; five months is not, unless the window is long enough to justify it.
Some cards cap the fee
A flat cap protects large balances and makes the transfer viable where a percentage would not be.
The fee is not the only cost
Miss a payment and the 0% can be withdrawn, reverting the whole balance to 20%+ immediately. Set a direct debit for the minimum the day the card arrives.
FAQ
Is the fee refunded if the transfer fails?▾
Normally not.
Can I pay the fee upfront?▾
Yes, and it is better than adding it to the balance.
Does a fee affect the 0% period?▾
No, but the fee itself is not at 0%.
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