The personal finance website has calculated how much credit card customers could save by switching to a balance transfer credit card. This type of credit card offers 0% interest on balance transfer balances for a set period of time – up to 29 months at the moment.
TotallyMoney’s research investigated the best balance transfer offers available for each credit score band, and calculated how much customers can save by cutting interest payments.
It found that prime/good credit score customers might be eligible for a 16-month card, saving £752 over a year, while a near prime customer might still be able to snag a nine-month offer, saving £385 in interest.
Researchers found that half (49.2%) of all credit card customers are paying interest on their borrowing every month.
The balance transfer market
There are 15 fewer balance transfer offers on the market than two years ago (falling from 73 to 58), while average balance transfer fees have crept up (from 1.99% to 2.42%), and the average interest-free period has fallen by 16% from 612 to 514 days.
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The table below shows the best cards available:
| Provider | Fee | Duration | Saving | Band | Typical range |
| Virgin Money | 3.45% | 29 months | £1,421 | prime/excellent | 575-710 |
| NatWest | 0% | 13 months | £682 | prime/excellent | 575-710 |
| Virgin Money | 3% | 16 months | £752 | prime/good | 501-575 |
| Fluid | 3% | 9 months | £385 | near prime/good | 426-500 |
| Research conducted by TotallyMoney, October 2024 | |||||
The longest balance transfer deal at the moment is from Virgin Money, which offers 29 months at 0% interest – but it charges a 3.45% fee. Natwest’s balance transfer card offers 0% interest for 13 months and is fee-free.
Alastair Douglas, CEO of TotallyMoney, said: “Anybody paying interest on their credit card debt each month should check their eligibility for a 0% balance transfer offer. It’ll mean you can stop paying interest for up to 29 months and focus on repaying your debt. It’ll help you get your finances in order and you could save you hundreds, if not thousands, of pounds.
“The best offers will usually only be available to people with the best scores, so download a free personal finance app [that] gives you access to your credit report. It should also provide you with a personalised plan to help you improve your score and unlock the best borrowing options. It might take some time, so take action as soon as possible, because you never know when you might need it.
“When applying, you should always shop around for the best deals, and look out for offers [that] come with pre-approval, guaranteed credit limits, guaranteed rates, and guaranteed 0% offer durations. That way, you’ll know if you’ll be accepted before you apply, and you can be totally sure that you’ll get exactly what’s advertised.
“It’s also worth remembering that a balance transfer is designed to help you stop paying interest, and it’s likely that you’ll be charged for using it for making purchases or withdrawing cash from the ATM. If you need access to both a 0% balance transfer, and 0% purchases, then check to see if you’re eligible for any combo cards.”
