Money transfer credit cards will tempt those struggling with expensive short-term credit, such as an overdraft or loan. If you qualify, you can shift cash from the card to your bank account, and use that to clear the debt. Thereafter, you have up to 36 months of 0% interest, giving you time to pay off the debt without racking up further charges. One downside is that transfer fees are as high as 4% of the money you move – £40 for every £1,000. Remember to meet every minimum monthly repayment (at the very least), otherwise you will instantly lose the 0% deal, and end up in a worse position than you began. Also think twice before making purchases or withdrawing cash on the card, as APRs are at the high end.
Tesco Money Transfer Credit Card
Good for: Combined money transfer and balance transfer benefits
Tesco delivers the goods when it comes to money transfer credit card deals, with a 0% introductory rate for a market leading 36 months, available on balance transfers as well. Just remember the debt has to be paid off in the end, ideally before you start incurring interest. Every little counts!
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Money transfer period |
36 months |
|
Transfer fee |
3.94% on transfers made within the first 90 days |
|
Balance transfer deal |
36 months with 2.69% fee, within 90 days |
|
Representative APR purchases |
18.9% |
|
Credit requirement |
Those with weaker credit scores may get a shorter 0% interest period of 30 or 24 months, depending on circumstances |
Virgin Money Transfer Credit Card
Good for: Money transfer plus low fee balance transfers
Virgin Money offers a range of money transfer credit cards with different length introductory rates, but this is the most generous stretching for 32 months. This applies to both money transfers, albeit with a pricey 4% fee, and balance transfers, with a far lower 0.60% fee. If you pass credit checks, you are guaranteed to get the full 32-month introductory rates, rather than a shorter offer.
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Money transfer period |
32 months |
|
Transfer fee |
4% fee if transferred within 60 days (thereafter 20.9% with a 5% handling fee) |
|
Balance transfer deal |
32 months with 0.60% fee if transferred within 60 days plus 0% on purchases for three months |
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Representative APR purchases |
20.9% |
|
Credit requirement |
Good but will definitely get full 32 months if accepted |
MBNA Platinum Credit Card
Good for: Lengthy 0% money transfer period lasting 32 months
The MBNA Platinum Credit Card combines a generous 32-month money transfer period, with 24 months on balance transfers. Its money transfer fee is competitive at 2.99%, the balance-transfer fee less so at 3.45%. The MBNA site includes a handy eligibility checker, to see what you might be offered before you apply.
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Money transfer period |
32 months |
|
Transfer fee |
2.99% if transferred within 60 days (thereafter 23.9% with a 5% handling fee) |
|
Balance transfer deal |
24 months but with expensive 3.45% fee |
|
Representative APR purchases |
19.9% |
|
Credit requirement |
Those with poor credit scores may still get the card, but with a shorter money transfer period |
