Top Ten Balance Transfer Mistakes

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March 15, 2025

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Balance transfer credit cards can help you pay off existing credit card debt at a lower rate of interest. This means you can become debt-free more quickly. But there are several pitfalls to watch out for that could cost you money and hurt your credit score if you’re not careful.

Balance transfer mistakes to avoid

Below, we’ve outlined some of the most common balance transfer mistakes.

1. Not checking if you qualify

Most card providers now offer eligibility checkers. These let you see your chances of getting accepted for a particular credit card, without impacting your credit score.

Using an eligibility checker reduces the risk of applying for a card you don’t qualify for. It can also show you what interest rate and credit limit you should get.

Once you know that you’re likely to get a card with an acceptable limit and rate, you can go ahead and apply in full. In this way, you can avoid making too many credit applications in a short space of time, which can damage your credit score.

2. Forgetting about the balance transfer fee

Many balance transfer credit cards charge a fee of around 2% to 3% of the amount transferred. The provider adds this to your balance, so it’s important to remember to factor it in. For example, if you transfer £3,000 at a fee of 3%, you’ll pay £90 extra.

Some balance transfer credit cards don’t charge a fee. However, these no-fee balance transfer credit cards tend to have shorter 0% periods.

3. Overestimating the transfer limit

You can usually only transfer a percentage of your total credit limit – typically up to 95%. It’s important to check your credit card’s small print to find out what the transfer limit is, so you’re not caught out.

If your credit limit was £3,000, for example, you might only be able to transfer £2,850 (95%).

Read more:

How much can you balance transfer to another credit card?
How long does a balance transfer take?

4. Ignoring the balance transfer deadline

If your balance transfer credit card has a 0% offer, you usually have a deadline by which you need to make your transfer. This is typically within the first 60 or 90 days of opening your account.

If you transfer your balance after this time, you won’t qualify for the 0% deal. Instead, your balance transfer starts accruing interest at the card’s standard rate.

Once you’ve applied for your new card, it’s sensible to make a note in your diary so you don’t forget this important deadline.

5. Only paying off the minimum

Credit card minimum monthly repayments are typically set at very low levels – often between 1% and 2.5%, or £5 to £25 of your balance, whichever is higher. If you only pay this amount each month, you won’t be able to clear your balance before any 0% offer ends.

For example, if you transfer £3,000, your provider might only ask you to pay off £60 a month. But if your card has a 0% period of 20 months, you need to pay off £150 a month (£3,000 divided by 20) to clear the balance before the 0% deal ends – if there’s no balance transfer fee. If there is a fee, such as 2.99%, you should ensure this extra £89.70, is also cleared within the 0% period.

If you only pay off the minimum each month, it can take years to clear your debt. If interest starts accruing, it can rapidly become expensive. It’s far better to set up a Direct Debit to pay off as much as you can afford each month.

6. Missing a payment

If you miss a payment on your credit card, you must pay a late payment fee of around £12. The missed payments are also recorded on your credit file, which can affect your chances of getting credit again in the future.

Your credit card provider can also withdraw any 0% offer you have if you miss payments.

Read more:

Balance transfer pros and cons
How many balance transfers can you do?

7. Stopping payments to your old card too soon

A balance transfer usually only takes a few days to complete, but it can take longer. While this transfer takes place, it’s important to keep up with your monthly payments on your old card.

Monitor both your new and old credit cards to ensure the transfer has been completed before you stop making payments to your old card. It can be worth keeping an eye on this for a couple of months after the transfer to make sure the provider hasn’t charged you any extra fees.

8. Spending on your cards

Once you’ve transferred a balance from your old card, resist the temptation to spend on it again. It’s also best to avoid spending on your new credit card. Racking up more debt while trying to pay off your existing balance can make the situation even harder. If you’re worried you might spend on your old card, cancel it as soon as possible.

9. Trying to transfer a balance to a card with the same provider

Be aware that you can’t transfer a balance between credit cards from the same provider. So, if you have a credit card with Halifax, you can’t move the balance to another Halifax card.

In some cases, this also applies to banking groups, so check the terms and conditions carefully. For example, you can’t transfer a balance from an RBS card to a NatWest one as they are both part of the same banking group.

10. Not having a plan in place

Finally, make sure you have a solid repayment plan in place before you carry out a balance transfer. It’s important to know how much you need to pay off each month to clear your debt before any 0% deal ends, and to ensure you can afford the necessary repayment.