Are you looking to repay your high APR overdraft or a personal loan?
Look no further; a money transfer can help you with just this. Money transfer credit cards are ideal for consolidating debt and giving yourself more breathing room to make repayments.
This article will introduce you to the four best money transfer credit cards. You'll learn all you need to know about money transfers, and we've got tips to help you reduce your debt balance.
| Card Name | Score | Details |
|---|---|---|
| 1. MBNA 0% Money Transfer Card | ★★★★★ | Learn more |
| 2. Tesco Bank All Round Credit Card | ★★★★★ | Learn more |
| 3. Virgin Money Money Transfer Credit Card | ★★★★★ | Learn more |
| 4. Virgin Money All-Round Credit Card | ★★★★★ | Learn more |
At a Glance, Benefits and Drawbacks
Before we dive into the best money transfer credit cards, let's cover the basics first of the benefits and drawbacks of using a money transfer credit card to reduce debt.
Benefits
✔️ Most money transfer credit card providers offer an introductory interest-free period, which is ideal if you want to pay back an overdraft, personal loan, or payday loan without worrying about interest rates.
✔️ You can use a money transfer card to consolidate debt onto one card, making reducing and paying back debt balances easier.
✔️ Credit cards designed for money transfers usually have lower fees.
Drawbacks
❌️ You may have higher APR rates than your original debt once the interest-free period ends.
❌️ You may be limited on how much of the credit card balance you can transfer into your bank account.
❌️ Different credit cards come with additional fees. You may be charged more interest than a money transfer credit card if you use your regular credit card. Compare credit cards to get the best deal.
❌️ There may be better ways to borrow cash, such as a loan.
Best Money Transfer Credit Cards In The UK 2024
The following money transfer cards can be obtained in the UK and are all protected by the Financial Services Compensation Scheme (FSCS) and Section 75 of the Consumer Credit Act. Let's dive into the best money transfer cards without further ado.
1. MBNA 0% Money Transfer Card
MBNA 0% Money Transfer Card
Credit Limit
Representative % APR (variable)
22.9% APR
-
Money transfer fee 3.49%.
-
Interest-free period up to 14 months.
-
Get an introductory rate. This could save you interest on the balances you transfer and give you longer to repay.
Representative Example – If you spend £1,200 at a purchase interest rate of 22.9% p.a. (variable) your representative APR will be 22.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.
The MBNA Money Transfer Credit Card is the top pick because it has one of the most extended interest-free periods and the lowest money transfer fee.
With this money transfer card, you can take advantage of up to 14 months of interest-free terms allowing you plenty of time to repay the balance without worrying about interest rates. Depending on your credit file, you may be offered a longer interest-free period of up to 18 months.
Applying for credit can harm your credit score. However, MBNA has an eligibility checker that allows you to see if you're eligible and provides you with an upfront credit limit estimate without affecting your credit score, and it only takes five minutes.
2. Tesco Bank All Round Credit Card
Tesco Bank All Round Credit Card
Credit Limit
Minimum £100
Representative % APR (variable)
22.9% APR
-
0% interest on purchases for up to 12 months.
-
0% interest on balance transfers for up to 12 months (1.99% fee).
-
0% interest on money transfers for up to 12 months (3.99% fee).
Representative Example – If you spend £1,200 at a purchase interest rate of 22.9% p.a. (variable) your representative APR will be 22.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.
The Tesco All Round Credit Card is multipurpose as it allows you to make purchases, balance transfers, and money transfers with up to 12 months interest-free.
This credit card rewards you for using it; when you use your credit card to shop at Tesco, you can earn additional Clubcard points. You can earn five points for every £4 you spend at Tesco (Tesco fuel included) and one point for every £8 spent in other shops. So, you can use your Clubcard to earn points by simply using this credit card on top of any other points you may earn using your Clubcard.
With this credit card, money transfers must be made within the first 90 days of opening the account to take advantage of the interest-free period.
3. Virgin Money Money Transfer Credit Card
Virgin Money Money Transfer Credit Card
Credit Limit
Subject to Status
Representative % APR (variable)
23.9% APR
-
Money transfer fee 4%.
-
Interest-free period from 12 months up to 24 months.
-
Virgin Money Rewards.
Representative Example – If you spend £1,200 at a purchase interest rate of 23.9% p.a. (variable) your representative APR will be 23.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.
With a Virgin Money Money Transfer Credit Card, you'll get up to 24 months of 0% interest on money transfers as long as you make a transfer within the first 90 days of opening the account.
One of the great features of this credit card is that you'll gain access to Virgin Rewards. Using the Virgin Red app, you can earn rewards in over 100 different ways, and you can earn and spend Virgin Points on cinema tickets, a coffee while you're on the go, or you can treat yourself to a VIP suite or those front row tickets to see your favourite artist. This credit card allows you to earn points just for using it!
4. Virgin Money All-Round Credit Card
Virgin Money All-Round Credit Card
Credit Limit
Subject to Status
Representative % APR (variable)
29.9% APR
-
Money transfer fee 4%.
-
Interest-free period up to 12 months.
-
Balance transfer fee 3%.
Representative Example – If you spend £1,200 at a purchase interest rate of 29.9% p.a. (variable) your representative APR will be 29.9% APR (variable). Your APR and credit limit may vary depending on your circumstances.
If you want to make the most out of a credit card, the Virgin Money All Round Credit Card allows you to make money, balance transfers, and purchases, and these transactions are interest-free for the first 12 months of opening the account.
This credit card has the highest APR rate but has some great additional features. This card is designed to help improve your credit score. By using this card and paying repayments, you can go from having a good credit rating to an excellent one. Additionally, you can use the website's eligibility checker before filling out an application, which will have zero effect on your credit history.
Best Money Transfer Credit Card: Buying Guide
In this section, you'll learn all the basics about money transfer credit cards and what to look out for when searching for the ideal one, and we've got some helpful tips on reducing any debts you may have.
What is a Money Transfer Credit Card?
A money transfer credit card allows you to transfer the money balance from a credit card to the bank account of your debit card. It's similar to a cash loan, which you can use to pay back a bank overdraft or personal loan. Sometimes, interest rates can be high on overdrafts, so a money transfer can help reduce the interest you pay on the debt.
The idea is to use a money transfer card with a lower APR rate to have some breathing room to pay back the balance and reduce the amount of paying interest.
What to Look Out for with Money Transfer Cards?
As well as the key features we've included in our top picks, other factors can help you find the right money transfer credit card.
Consider the following factors:
- Introductory period: the longer the interest-free period, the better, as you'll have more time to pay back the balance before considering paying interest.
- Annual percentage rates: interest rates will vary between money transfer cards, so it's a good idea to ensure the APR rates are lower than those for your overdraft or personal loan. Compare credit cards and try the one with the lowest-paying interest rates.
- Credit limit: the credit balance on your new card should have enough to cover the entire cost of the overdraft or personal loans, so when you transfer money across, that debt is consolidated into one card.
- Minimum monthly repayments: it's important that once you've used the balance of your money transfer card, you can afford to pay back the balance on time, and you should aim to make more than the minimum monthly payments to avoid missing payments and to clear your balance quicker.
- Credit rating: some credit cards require a good credit score to be eligible. Most applications require a credit check, so to avoid rejection and marks on your credit rating, always use the eligibility checker if there's one available before filling out an application.
- Eligibility: credit balance, fees, and annual percentage rate will vary between applicants' financial circumstances.
- Extra benefits: like some of the money transfer cards from our best money transfer card selection, you can earn points or extra benefits for using the credit card.
- Borrow an amount you can afford to pay back: borrowing money you know you can't repay can lead to long-term debt.
How to Make a Money Transfer from Your Credit Card
Money transfers are the only way to get money from a credit card. If you want to withdraw cash from your credit card, you can use three main methods.
Three ways to withdraw money:
- Cash advance: if you require cash for in-person purchases, you can withdraw money from your credit like your debit card using an ATM. There are fees involved, and you're usually charged interest daily from the day you make the transaction.
- Payment apps: you can add your credit card to a payment app like Apple Pay or Google Pay to shop online or at high street stores without carrying your credit card.
- Money transfer: is a type of cash advance that allows you to transfer money from your credit card to your current account.
Tips for Helping You Reduce Existing Debt
Using a money transfer credit card is a great way to help reduce debt, but this isn't your only option. We've some alternative options that can help, or you can do as well instead of using a money transfer card.
Other methods to help reduce remaining debt:
- Balance transfer cards: if you want to clear a credit card balance on a different card, consider looking at balance transfer cards. They allow you to balance transfers from one credit card to another and usually have lower fees than a money transfer credit card.
- Avoid cash withdrawals: withdrawing cash from a credit card can become expensive quickly as you're charged interest daily from the day you make the transaction.
- Avoid missed payments: missing repayments can negatively impact your credit rating, so we recommend always making the minimum repayment to avoid any additional fees that come with late payments.
- Utilising interest-free periods: interest payments can be expensive, and most of the time, you'll find yourself paying back more money than you borrowed.
- Set up a direct debit: setting up a direct debit from your debit card can ensure you're paying back your credit card balance on time. It's so easy to forget about due dates, and with the option of direct debits, you won't have to worry about missing payments.
- Save money: putting aside money to pay off your debts in large chunks can help reduce your credit utilisation.
- Close unused credit accounts: closing any accounts you’re not using will help you resist the temptation to spend and demonstrate control of finances when it comes to applying for future lines of credit.
- Individual voluntary arrangement (IVA): if you're struggling with debt and can't borrow cash or apply for a personal or traditional loan. You could consider an IVA as a last option. It's a legally binding agreement between you and your creditors to repay your debts over time. An IVA will hurt your credit report, making applying for any future line of credit difficult.
With one or all of the above methods, you can begin to reduce any debts you may have. The more you pay back, the less you'll have to worry about in the future, and it can help improve your credit history.
The Final Verdict of Money Transfer Credit Cards
A money transfer credit card is a great option to pay back overdrafts and loans with high-interest rates. It allows you to transfer money from your credit card to your bank account. Although a money transfer card is helpful with consolidating debts, they're a serious commitment that shouldn't be taken lightly.
So before you go, remember that money transfer credit cards have money transfer fees, and if you choose to apply for one on top of an existing credit card, always look out for ones with long interest-free periods. Hence, you have longer to pay back the balance to avoid paying interest for longer. With one of our top picks, you'll soon have the right money transfer card for your needs, and you can worry less about your overdraft fees.
Looking for more financial tools to make banking easier? Check out all the UK banks and financial institutions at Compare Banks. You can compare products and see real-life reviews.
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