Compare 0% Money Transfer Credit Cards

For those who need fast access to cash, comparing credit cards may not be your first thought. However, with a money transfer credit card, you can transfer money from your credit card to your current account interest-free.

Compare money transfer credit cards

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Last updated October 2020

What is a money transfer credit card?

A money transfer credit card allows you to transfer money into your current account from your credit card. This lets you withdraw cash or pay off overdrafts and is a much more cost-effective method compared to withdrawing cash from the credit card directly.

How do money transfer credit cards work?

A money transfer card will move cash directly to your current account from your credit card. This money is taken out as credit which means it must be repaid like any other credit card spend.

Typically, moving money from your credit card to your current account comes with fees and interest rates attached. However, with a 0% money transfer card, you can benefit from 0% interest rates. You will usually still have to pay a money transfer fee, which is usually about 2-4% of the amount you transfer.

Remember: Always use your savings or money from your income first before taking on debt. If you are struggling with debt, you can get free debt advice and support from Stepchange.

Advantages of a money transfer credit card

If you need to withdraw cash from your credit card, a 0% money transfer credit card is ideal. This is a far cheaper way of doing it than withdrawing cash from the credit card directly. Here are some of the other advantages of a money transfer card.

  • Fees are lower than a personal loan - While the fees are not ideal, if you are looking to borrow money, a money transfer credit card is one way to keep your costs low. If you pay the balance off on time, there are no interest fees to pay, so the 2-4% fee is all the “mini-loan” will cost you overall.
  • Fast access to cash - Simply transferring from your credit card is a fast and easy way to access cash. There’s no need to apply for a loan and wait until you are approved.

Disadvantages of a money transfer credit card

The cost of taking money out of your credit card balance is the main thing to think about. You will have to calculate whether the costs are worth it. Here are some of the main disadvantages of a money transfer card.

  • Interest and fees to pay - Using a money transfer card will cost you something, but if you don’t pay off your balance in full, you will be faced with both interest rates and fees.
  • You’re adding to your debt - If you need extra cash in your current account, adding to your credit card debt isn’t ideal. It could make the balance harder to clear each time you do it.
  • Time limit on transfers - Most credit cards will have a time limit on how long the interest-free period lasts. You may need to make your money transfers within 60 days of opening the card to use the interest-free period. This means it may not be an ideal way to access cash in the long-term.

Money transfer credit cards FAQs

We have listed out some frequently asked money transfer card questions.

Yes. These credit cards are designed to let you transfer money from your credit card into your own current account.

There are pros and cons of a money transfer card. The main things to think about are the costs and whether you can repay the balance back on time. The best way to use a money transfer credit card is to avoid the interest rate.

If you know you won’t be able to pay off the balance on time, you will have to compare the interest plus transfer fees with the fees of taking out a personal loan to see which is the best option. Even with the interest rates, a money transfer credit card could be a cheaper way of getting cash than a loan. However, it’s best to do some research on this first.

A money transfer card does have some advantages over a personal loan. It’s possible to get access to money interest-free if you have a 0% interest card. This means you will be saving on interest and you will only have the money transfer fee to pay. In comparison, a personal loan will typically have much higher interest rates than the money transfer fee will cost.

As you are taking money from your credit card balance, it still counts as using credit. This means that it will affect your credit rating one way or the other.

If you use a money transfer card responsibly, taking out credit in this way could be a positive way of building your credit rating. However, if you miss payments or make just the minimum repayments each month, this can harm your credit history.

Money transfers can be used to pay off existing debt like overdrafts on your personal account, personal loans and store cards. If you need to pay off other credit cards, a balance transfer credit card may be a better option for you.

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