Balance transfers and money transfers
What's the difference between balance and money transfers?
Balance transfers
This is where you move existing credit card or store card balances to another credit card.
Money transfers
This is where you move money from your credit card to your current account.
Balance transfers
How do balance transfers work?
- If you have existing credit card or store card balances, you could put them all together on one credit card, so you can manage your finances more easily.
- You might also save on interest repayments too, as balance transfers sometimes have an introductory or promotional rate.
Good to know
- Balance transfers are subject to eligibility and security checks. These won’t leave a footprint on your credit file.
- You might be charged a fee for any balance transfers you make. This is normally a percentage of the amount you’re transferring. For example, a transfer of £1,000 with a 3% fee would result in a £30 transfer fee.
- Only paying back the minimum payment every month could take you longer to clear your balance and cost you more.
- You can’t transfer balances between MBNA accounts.
- Once the transfer’s been processed, it can’t be cancelled. Neither can any fees.
- If you’ve not paid all your balance transfer amount off before your promotional period ends, interest will be payable on the remaining amount at your account’s standard interest rate.
Money Transfers
How do money transfers work?
- If you need funds for a purchase where credit cards aren’t accepted, a money transfer can come in handy.
- Transfer money to a UK current account in your name, and use your debit card or cash in the usual way.
Good to know
- Money transfers are subject to eligibility and security checks. These won’t leave a footprint on your credit file.
- You might be charged a fee for any money transfers you make. This is normally a percentage of the amount you’re transferring. For example, a transfer of £1,000 with a 3% fee would result in a £30 transfer fee.
- Only paying back the minimum payment every month could take you longer to clear your balance and cost you more.
- Once the transfer’s been processed, it can’t be cancelled. Neither can any fees.
- If you’ve not paid all your money transfer amount off before your promotional period ends, interest will be payable on the remaining amount at your account’s standard interest rate.
- Anything bought using funds from a money transfer isn’t covered by Section 75 of the Consumer Credit Act 1974.
Before you go ahead, ask yourself:
Does this suit my borrowing needs, or should I consider other options?
Will I be able to make repayments, even if my circumstances change?