Frequently Asked Questions

Going ahead with an application for a balance transfer credit card with no interest will likely mean a hard credit search will be completed on your credit report. Hard credit searches will be visible to others. Many hard searches in a short period can be viewed negatively and impact your score.

However, using an interest free balance transfer credit card correctly to reduce debt over time will improve your finances and credit score as you prove you can manage debt. Not making your minimum monthly repayments will hurt your credit score. Your credit report will show missed payments and defaults for up to 6 years.

The main risk is if you can’t pay off the balance in full before the interest free period ends. This will result in you repaying the interest again on the remaining balance. However, if you ensure you know when the interest free period ends, you can transfer any remaining balance to a new interest free credit card to avoid paying interest. But this will be subject to approval, you will usually have to pay a fee on the balance you wish to move.

Making monthly repayments on time is equally important. Not doing so can mean you lose the interest free period and damage your credit rating.

It would also be wise not to spend on 0 interest balance transfer credit card if possible. New purchases will incur interest charges unless you pay for these within the interest-free grace period. Regardless, using your new card will mean you have the transferred debt to pay off and any recent transactions.

Yes, balance transfers don’t always get approved. For example, if the amount you want to transfer on the current card exceeds the limit on the new card. The card provider will likely cancel the request, and you may have to submit a lower amount to transfer within your new credit limit.

When the interest free period ends, the remaining balance you transferred will attract interest charges (if it has not been paid off). This is in addition to any other purchases you make on the same card, although the interest rate for purchases may differ from the interest rate on the remaining balance.

Yes, cards are available to suit most types of credit scores. However, you may be limited in choice if you have a bad credit score. Plus, your interest-free period may not be as long, and your interest rate will likely be high once the interest free period is over.

There is no limit on how many transfers you can make - as long as you're approved. But it's important to remember many applications in a short period can negatively impact your credit score. You may also have to pay a fee (sometimes as high as 3%) on the balance you wish to move.