Best credit cards with 0% money transfer
Oney transfer cards allow you to transfer money directly to your bank account from your allocated spending limit. You then repay the borrowed amount from your credit card provider in monthly installments, just as you would with any other type of credit card.
Once you’ve made the transfer, you can use the funds however you want, whether it’s paying off an expensive overdraft or as a low-cost loan to buy a new car or other large purchase.
You will usually have to pay a fee which is charged as a percentage of the amount transferred, usually between 2% and 4%. So if you transfer £ 3,000 a cost of £ 60 to £ 120 will be added to your card balance.
What are the best 0% money transfer cards?
If one of these cards is right for you, how do you go about getting the best one?
At ES Money, we did some research (June 2021) and have listed the best deals we found below.
A word of warning though: Accepting these cards requires a solid credit score, so not all applicants will qualify. You can assess your chances of being accepted for a card without disrupting your credit score by using an eligibility checker.
We have categorized these cards simply by duration of 0% on money transfers. But note that while the details were correct at the time of writing, the offers may change.
1. 0% MBNA long money transfer card
TAEG representative: 22.9% (variable)
At 18 months, this card from MBNA offers the longest interest-free period on money transfers currently available.
As long as you stay within 93% of your allocated credit limit, you can make as many money transfers as you want (at minimum 14 day intervals) within the first 60 days and avoid paying interest on debt during the 18 month period.
However, you will be charged a 2.99% fee each time.
The card also comes with 12 months interest-free on other credit card balances transferred to the card, with a 4% higher fee (note that neither cash nor balance transfers can be made from ‘other MBNA accounts).
Some applicants may also be offered a higher fee or a shorter 0% period.
2. Tesco All Round 15/15 card
TAEG representative: 19.9% (variable)
While MBNA beats this card for a 0% term and fee, the Tesco Bank Money Transfer Card offers other benefits. For example, you will have almost three months (90 days) from opening the account to benefit from 0% interest on money transfers, which can add up to 95% of your total allocated credit.
You can also earn Tesco Clubcard points faster by shopping in or outside the store.
Interest-free balance transfers from other card providers are also available for 15 months for a relatively low fee of 1.99%, while the card offers the same interest-free period on new purchases.
In contrast, applicants with lower credit scores and incomes might only be offered 12 or even nine months without interest.
3. 19 month Virgin credit card
TAEG representative: 21.9% (variable)
This Virgin Money money transfer card offers one year 0% interest on borrowed money for a 4% fee. But, unlike other cards, this duration is guaranteed if you are accepted.
Although it is a serious competitor for money transfers, the card is the most attractive for interest-free balance transfers (2.9% fee) and purchases, both of which offer 19 months at 0%, as the name of the card suggests.
The card also serves as a pass for Virgin customer lounges.
Money transfers must be made within the first 60 days of opening the card to benefit from the 0% offer.
* If you are looking for a 0% money transfer card and have existing card debt, Virgin ‘Money’s 29 month full credit card might be a better option. It offers the same 12 months at 0% on money transfers (same 4% fee) but 29 months on balance transfers (3% fee) and three months at 0% on purchases.
What methodology did we use?
When we ranked the top money transfer card offerings at 0%, we take these criteria into account, which are listed here in what we consider to be their order of importance:
- 0% money transfer period length
- money transfer fee amount
- Representative APR (the variable interest rate applied after the 0% period has ended)
- rewards, perks and benefits
We worked on the basis that requests were accepted with the longest advertised money transfer time at 0%, the lowest advertised money transfer fees, and the lowest advertised APR.
Frequently Asked Questions
How much interest is charged?
Most competitive money transfer credit cards charge no interest for the first number of months. This is good news, because it means that all of your monthly payments are used to pay off the debt rather than the interest.
Once the 0% window is over, interest of at least 20% APR (variable) will apply, so it’s important to pay your balance on time.
Do all money transfer cards charge a fee?
In the majority of cases, you will have to pay a transfer fee. The offers change regularly, but every once in a while you may find cards that charge little or no fees. However, these will carry 0% shorter periods.
How much money can I transfer?
The amount of money you will be able to transfer to your checking account from a money transfer card is based on a percentage of your overall credit limit – it is usually between 90% and 95%.
So if your allocated card limit is £ 4,000, you can expect between £ 3,600 and £ 3,800 to be deposited into your bank account.
Minimum transfer amounts of around £ 100 generally apply.
Can I make multiple transfers?
You can make multiple transfers but, unless the card is free, it will cost you each time.
And if you do this outside of the allowed transfer window (usually 30, 60, or sometimes 90 days from the account opening), you will likely lose the 0% interest, or the ‘no fresh “.
How to use a money transfer card?
Money transfer cards are ideal when used to your advantage. But if you start earning interest, all the benefits could quickly be lost.
To get the most out of your card, calculate how much you’ll need to pay each month to clear the balance before the 0% offer ends. Then set up a direct debit for that amount, so you don’t have to think about it again.
If you can’t afford to, try paying more than the minimum – more details below.
What should I watch out for?
When you compare money transfer credit cards, consider the following:
The essential APR: if things go as planned, you’ll never pay the APR that goes into effect after the 0% window, but it helps to be aware of what that is. Also, keep in mind that the APR you see advertised is only representative, which means it should be offered to 51% of successful applicants. Yours could be higher.
Minimum monthly repayments: these are usually set at low levels – around 1% to 2.5% of the balance – but always try to pay more than that. Paying just the minimum each month will earn interest and it will take you years to pay off your debt.
Eligibility: The most competitive 0% money transfer credit cards are for applicants with excellent credit scores. If yours doesn’t measure up, you could be offered a shorter 0% offer, higher transfer fees, or even be turned down completely. Card providers with eligibility checkers let you see your chances of being accepted before you apply.