What is a balance transfer?

Moving an existing credit card (or store card) balance to a different credit card is a balance transfer.

Balance transfers can be useful when:

  • You want to make one monthly payment. A transfer could help manage multiple credit payments. 
  • Reducing borrowing costs. Transferring a balance with a higher rate of interest to a lower one could help to reduce your credit card costs. 

Can I make a balance transfer?

A balance transfer must be to a different provider than your existing credit card. So, for example, you can’t balance transfer between MBNA credit cards. You can transfer balances from credit or store cards that have a Visa®, Mastercard® or American Express® logo.

£100 is the minimum you can transfer at MBNA. 

93% of your credit limit is the maximum you can transfer at MBNA. This is to allow for a balance transfer fee and any other fees, as well as charges or transactions which haven’t yet reached your account.

Important to check

  • Transfer rates. Are there introductory or promotional offers, such as 0% interest rates, or is the balance transfer on a standard interest rate?
  • Transfer fees. A balance transfer usually comes with a fee for transferring. This is usually a percentage of the transfer amount. 
  • If you’ve already taken out a promotional offer. Before you apply for a new offer, it’s always worth checking which one you’ll be paying off first. Find out more about balances and what your payments go towards

Balance transfers are not always guaranteed and are subject to eligibility and security checks.

How does a balance transfer work?

Here's an example:

A credit card offers 0% on balance transfers for 12 months, with no other balances on the card.

Existing balance

Your existing credit card has a balance of £2,000 and an interest rate of 20%.

Balance transfer

Transferring the balance incurs a 1% transfer fee.

After completing the transfer, your outstanding balance would be £2,020 – the £2,000 transferred from the other card, plus the 1% transfer fee which works out as £20.

Paying it back

Then, if you pay back £202 on time, each month, the balance will be clear in 10 months without paying any interest subject to no additional spend being made on the card. Remember that standard interest rates apply to any remaining balance when any promotional rates expire.

Remember

Remember

If you have more than one balance transfer, the one with the highest interest rate will be paid off first:

  • If they have the same interest rates, balances will be paid off in the order you took them out.
  • They won’t be paid off based on which offer ends first
     

Find out more about balances and what your payments go

Things to think about before making a balance transfer

  1. Remember to check all fees and interest rates, just to make sure a balance transfer is the right option for you.
  2. Continue to make any payments to your existing provider, just until your transfer shows as complete on both accounts.
  3. Payments will be made towards the balances with the highest interest rate first:
    • For balances with the same interest rate, cash transactions and card purchases will be paid off first, before any balance transfers you have made. 
    • If you have more than one promotional offer at the same rate, they will be paid off in the order you took them out. They won’t be paid off based on which offer ends first. 

    4. Find out more about balances and what your payments go towards

  4. When your promotional rate is coming to an end, we’ll make sure to let you know in plenty of time. We’ll then charge your standard variable interest rate on any balances left after this. You can find this rate on your monthly statement.
  5. If you pay late or miss a payment, you may have to pay fees, lose any promotional offers you have, and it could damage your credit score.
  6. Promotional interest rates won’t apply to all transactions. So, you need to understand how using a balance transfer credit card for other things could affect the cost of borrowing and time to repay.

Balance transfer with us

At MBNA you can ask for a balance transfer from any card from another lender that has a Visa®, Mastercard® or American Express® logo. You can do this as part of your credit card application, and afterwards using the MBNA Mobile App and Online Services (where you’ll be able to see any available offers), or by calling us.

Subject to approval of your request, the transfer will normally arrive by the next working day. Working days do not include weekends or bank holidays.

Learn more about our balance transfer credit cards

FAQs
 

A quick recap

Here’s what you’ve learnt about balance transfers: 

  • A balance transfer is where you move an existing credit balance to a different credit card with another provider. 
  • They can be useful for managing your monthly credit payments and often have introductory or promotional offers. 
  • It’s important to check the interest rates, when the offer rates end and any additional costs, such as transfer fees – and make sure you can afford the repayments. 
  • If you have more than one promotional offer, the one with the highest interest rate will be paid off first. If they have the same interest rates, the balances will be paid off in the order you took them out. They won’t be paid off based on which offer ends first. Find out more about balances and what your payments go towards.
  • The minimum you can transfer with us is £100 and the maximum is 93% of your credit limit. 

Keep reading

Applying for credit

How does a credit score work?
What is a bad credit score?
What is a good credit score?
Why has my credit score gone down?
What affects your credit score?

Using credit

What are interest rates?
How to consolidate debt
What is APR?
 What is a money transfer?

Ways to borrow

What is credit?
Credit cards
Loans
Knowing what you can afford
How a credit card works

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