If you’re carrying a balance on your credit card and paying high interest every month, you’re far from alone. Many people across the UK are still feeling the squeeze in 2025 — and for lots of households, moving debt to a 0% balance transfer credit card is one of the smartest ways to get interest under control and clear debt faster.
But while balance transfer cards can be brilliant when used well, they’re not a magic fix. They come with rules, fees, and a few pitfalls to watch out for. Knowing how they work — and how to use them properly — can help you save money and avoid turning a short-term solution into a long-term headache.
This guide explains what a 0% balance transfer card is, how it works, the key pros and cons, and what to look for when comparing offers in 2025. You’ll also find practical tips to use these cards safely and effectively, plus a few reminders to help you dodge common mistakes.
What Is a 0% Balance Transfer Card?
A 0% balance transfer credit card is designed to help you move existing credit card debt to a new card — usually with a special deal that charges no interest for a fixed time, often between 12 and 30 months.
Instead of paying 20% or more in interest on your current card, you pay 0% for the deal period. That means every penny you pay each month goes towards paying off what you owe — not just covering interest.
It’s called a ‘balance transfer’ because you transfer your balance (your debt) from one card to another. You can usually transfer debts from more than one old card if you like, as long as you stay within the new card’s credit limit.
How Does a Balance Transfer Work?
Here’s how the process usually goes:
1️⃣ Apply for a balance transfer card with a 0% interest offer. You’ll need to meet the lender’s credit checks — the best deals tend to go to people with good or excellent credit scores.
2️⃣ Tell the new card provider which debts to move. Often you do this as part of the application, or soon after you’re approved.
3️⃣ Pay a transfer fee. Most cards charge a one-off fee for moving your balance — usually around 2%–4% of the amount you move. For example, if you transfer £2,000 and the fee is 3%, you’ll pay £60.
4️⃣ Start paying down the debt. Once the balance is moved, you pay it off in monthly instalments. During the 0% period, you won’t pay any interest on the transferred debt — but if you don’t clear it before the deal ends, interest kicks in at the standard rate (which can be 20%+).
5️⃣ Avoid new spending if possible. Most balance transfer deals only apply to transferred balances. Any new purchases may not get the 0% rate — they might rack up interest straight away, or after a short intro period.
Used properly, a balance transfer card can save you hundreds of pounds — sometimes more — compared to leaving the balance on your old high-interest card.
Benefits of a 0% Balance Transfer Card
✔️ Save on interest: The main reason people use these cards is to stop paying interest and clear debt faster.
✔️ Tidy up multiple debts: You can roll several card balances into one, so you’ve only got one payment to keep track of each month.
✔️ Pay off debt faster: With no interest draining your payments, more of your money goes towards the actual debt.
✔️ Often cheaper than a loan: For small to medium debts and good credit, a balance transfer card can work out cheaper than taking out a personal loan.
Risks to Watch Out For
Of course, these cards aren’t risk-free. Here’s what to keep in mind:
❌ You still need discipline. A balance transfer doesn’t get rid of your debt — it just moves it. If you run up new spending on the old card (or the new one), you’re adding to the pile.
❌ Transfer fees can add up. Many people forget to factor in the one-off fee. It’s still usually cheaper than paying ongoing interest, but do the sums.
❌ Missing payments can cancel the 0% deal. If you pay late or break the card’s rules, the lender can cancel the promotional rate and charge you the standard interest rate instead.
❌ High rates after the 0% period. If you haven’t cleared the balance by the end of the deal, the leftover debt usually moves to a much higher rate. Some people end up hopping from one card to another, which can damage your credit score.
What to Look For in the Best 0% Balance Transfer Cards (2025)
There’s no single ‘best’ card for everyone — it depends on your situation, your credit score, and how long you’ll need to pay off the balance. But here are some features worth looking for when comparing deals this year:
1️⃣ Longest 0% Period
For many people, the key thing is how long the 0% window lasts. The longer you have, the more time you’ve got to pay off your balance without interest.
In 2025, many leading UK cards offer 0% deals for 18–30 months. Some cards with very long deals might charge a slightly higher transfer fee — so weigh up whether the longer time is worth it for you.
Tip: If you know you’ll clear the balance in 12–18 months, don’t pay extra fees for a 30-month deal you don’t really need.
2️⃣ Low Balance Transfer Fee
The balance transfer fee is a one-off charge, but it makes a difference — especially if you’re transferring a big balance.
Some cards in 2025 offer low or even zero transfer fees for shorter 0% periods. For example, you might find a card with 0% for 12 months and no fee — great if you can clear the debt quickly.
Tip: Always compare the total cost: how much the fee adds up to versus what you’d pay in interest on your old card.
3️⃣ Good Customer Service and App
It’s easy to overlook, but having a card with decent online banking or a clear app helps you keep on top of payments. You’ll want to check balances, make extra payments, or see when the deal ends — so a reliable app is handy.
Look at customer reviews for things like easy payments, good reminders, and clear statements.
4️⃣ Reasonable Standard APR
Once the 0% period ends, any leftover balance shifts to the card’s standard APR. Some cards have rates of 20%–35% APR — which can add up fast.
If you think you might still have a bit left to pay off when the 0% deal finishes, it’s worth comparing what rate you’d pay afterwards. Lower is better.
5️⃣ Eligibility Checker
Applying for lots of cards can dent your credit score. Many major card providers now offer free ‘soft check’ tools that show your chances of being accepted before you apply. This can help you pick the right card and avoid harming your score with rejections.
Tips for Using a Balance Transfer Card Wisely
Getting a good card is only half the story — how you use it matters even more. Here’s how to make sure your balance transfer works in your favour:
✅ 1. Pay at Least the Minimum — On Time
Missing a payment is one of the biggest mistakes people make. If you’re late, the lender can cancel your 0% deal — and you’re back paying high interest.
Set up a direct debit for at least the minimum each month. Better still, pay more when you can.
✅ 2. Clear the Balance Before the 0% Period Ends
This is the golden rule. Work out how much you need to pay each month to clear the whole balance by the end of the 0% window.
Example:
If you transfer £2,400 to a card with 0% for 24 months, you’ll need to pay £100 a month to clear it completely — plus any fees. If you pay less, whatever’s left at the end could get hit with high interest.
✅ 3. Don’t Use It for New Spending
Most cards charge standard interest on new purchases, even if you have a 0% balance transfer deal. That means spending on the card racks up interest unless there’s a separate 0% purchase offer (and even then, it’s easy to get confused).
Best tip: treat your balance transfer card as a debt-clearing tool — not a spending card. If you do buy something, pay it off in full before the statement date if you can.
✅ 4. Watch Out for Old Cards
Once you’ve moved the balance, think carefully about what to do with the old card. Closing it can affect your credit score a little — but leaving it open can tempt you to spend again.
One option: keep it open but cut it up or store it safely out of reach. Just be sure you’re not tempted to fill it up again — that’s how people end up in deeper debt than they started with.
✅ 5. Don’t Keep Hopping Forever
Some people end up moving balances from card to card every couple of years to stay interest-free. In theory, that can work — but too many applications and new credit can harm your score and lenders may eventually say no.
If you can, treat this as a one-time tool to help clear debt for good. Once the balance is gone, aim to stay debt-free or pay off your card in full each month.
Are Balance Transfer Cards Right for Everyone?
They’re a brilliant tool for lots of people — but they’re not always the answer.
✅ They work best if:
You have a good credit score.
Your debt is mainly on credit cards.
You’re confident you can clear it during the 0% period.
You’re disciplined enough to avoid extra spending.
❌ They’re less suitable if:
Your debts are mostly loans, overdrafts or payday loans (these can’t be transferred).
Your credit score is poor.
You’re already missing payments — you might struggle to get approved.
You’re tempted to spend on the card.
If you’re not sure, or if your debts feel unmanageable, talk to a free UK debt charity first — like StepChange, National Debtline or Citizens Advice. They can help you look at other options, like a debt management plan or budgeting help.
Final Thoughts
In 2025, 0% balance transfer cards remain one of the best ways for many UK households to get on top of lingering card debt. The best deals give you a clear breathing space to pay off what you owe without interest draining your payments.
But they only work if you stick to the plan — pay on time, pay enough each month, and don’t treat the card like free money. Used wisely, they can save you hundreds and help you get back to a zero balance faster.
Before you pick a card, compare all the details carefully — fees, length of the deal, standard APR, reviews. If you’re unsure, don’t be afraid to ask for help or speak to a qualified adviser.
And remember: every pound you clear today is one less pound you owe tomorrow. You’ve got this.
Disclaimer: This article is for general information only and is not financial advice. Always check current terms and conditions, compare products, and seek professional guidance if you’re unsure what’s best for your situation.