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Best 0% Money Transfer Credit Card Offers

Editor

Published: Aug 20, 2021, 12:50pm

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When it comes to borrowing cost-effectively, 0% money transfer credit cards can be a much under-rated financial tool.

Money transfer cards allow you to effectively convert your available credit from a new credit card into cash, which is then paid directly into your current account.

With a 0% money transfer card, the loan remains interest-free for an agreed period of time. There’s likely to be an upfront fee to pay however, which is typically charged as a percentage of the amount you borrow.

While our research revealed there is only a limited number of 0% money transfer credit cards currently on the market, based on our research (August 2021), we’ve identified the top offers available.

However, it’s important to note that the best offer for you will depend on your individual circumstances, such as your income and credit score. And you may not qualify for the particular deals you see advertised. That’s why we recommend using an eligibility checker to find the offer that best suits your needs.

Best 0% Money Transfer Offers

MBNA Long 0% Money Transfer Card

Representative APR

22.9% (variable)

0% money transfer duration

up to 24 months

Transfer fee (%)

2.99%

Compare Cards

Representative APR

22.9% (variable)

0% money transfer duration

up to 24 months

Transfer fee (%)

2.99%

Why We Picked It

MBNA’s aptly-named Long Money Transfer Card offers the longest 0% period on cash transfers. And – for the interest-free duration offered – it’s the lowest fee available too.

As an example, a money transfer of £2,000 would cost you just under £60. However, that would be the only charge so long as you paid off the balance within 24 months before the representative 22.9% APR (variable) rate kicks in.

There’s no limit to how many money transfers you can make on this card, provided you leave at least 14 days between each transfer to the same bank account, and don’t exceed 93% of your allocated credit limit. However, for the money to remain interest-free, you will need to make all transfers within the first 60 days of opening the account.

As is usually the case with these deals, you won’t be able to make transfers from other MBNA accounts. But, for new customers, this is the best 0% money transfer deal on the market.

Using an eligibility checker will allow you to see the likelihood of being accepted before applying for a money transfer card. This will avoid surprises, as well as leave your credit score intact.

Pros & Cons

Longest 0% period with lowest fee
No annual fee

24 months is an ‘up to’. You could be offered 14 months and/ or higher transfer fee
Relatively high rep 22.9% APR (variable) – and up to 27.9% (variable) could be offered

Tesco All Round Credit Card

Representative APR

20.9% (variable)

0% money transfer duration

up to 15 months

Transfer fee (%)

3.99%

Compare Cards

Representative APR

20.9% (variable)

0% money transfer duration

up to 15 months

Transfer fee (%)

3.99%

Why We Picked It

Tesco offers 15 months 0% on cash transfers, which matches its 0% balance transfer window too.

There’s a generous window of 90 days from opening your account in which to organise the transfers and get access the interest-free borrowing. All transfers can total up to 95% of your available credit limit.

With this card, you can also pick up Tesco Clubcard points even if you are shopping outside the store, albeit at a lower rate – 5 Clubcard points for every £4 you spend in Tesco and 1 for every £8 you spend outside Tesco.

Always use an eligibility checker to see your chances of being accepted for a card before you apply. This will avoid surprises and leave your credit score intact.

Pros & Cons

15 months 0% on money transfers
90 days to make money transfers and get 0%
Collect Tesco Clubcard points on nearly all purchases

Relatively high money transfer fee
Longer 0% money transfer periods available
May be offered 12 or 9 months depending on status/ credit score

Virgin 19-Month All Round Credit Card

Rep APR

21.9% (variable)

0% money transfer duration

12 months

Transfer fee (%)

Compare Cards

Rep APR

21.9% (variable)

0% money transfer duration

12 months

Transfer fee (%)

Why We Picked It

While this card only offers a year’s 0% interest on money transfers, if you are accepted, this is what you will be offered – rather than a shorter alternative. But the best 0% offerings from the card are attached to balance transfers and purchases, both of which stand at 19 months.

The 4% fee puts the cost of a £2,000 money transfer at £80 – although this will be all the charges you pay so long as you clear the balance before the representative APR of 21.9% (variable) kicks in. You’ll need to make the transfer within the first 60 days to qualify for the interest-free borrowing.

Irrespective of the 0% duration, this card could be a handy long-term travelling companion as it unlocks access to Virgin customer lounges across the country.

There’s also 20% off Virgin Experience Days and other Virgin Group discounts.

Always use an eligibility checker to see your chances of being accepted for a card before you apply. This will avoid surprises and leave your credit score intact.

Pros & Cons

Not an ‘up to’ so 12 months guaranteed if you’re accepted
19 months on both purchases and balance transfers too (3% fee)
Free use of Virgin customer lounges

Longer 0% money transfer terms available
Relatively high money transfer fee
No balance transfers from Virgin or Clydesdale Bank credit cards

Virgin 29-Month Balance Transfer Credit Card

Rep APR

21.9% (variable)

0% money transfer duration

12 months

Transfer fee (%)

Compare Cards

Rep APR

21.9% (variable)

0% money transfer duration

12 months

Transfer fee (%)

Why We Picked It

This card is called the 29-Month Balance Transfer card because that’s actually its strong point. That said, the 0% money transfer offering still sits at a decent 12 months. That’s the duration you will get too if you are accepted rather than a shorter alternative.

The 4% fee puts the cost of a £2,000 money transfer at £80 – although this will be the full extent of the charges providing you clear the debt ahead of the representative APR of 21.9% (variable) kicking in. You’ll need to make money transfers within the first 60 days of getting the card to qualify for the interest-free borrowing.

Other perks include an initial three months 0% on all new purchases.

The card could also be a handy long-term travelling companion as it provides free access to Virgin customer lounges across the country.

There’s also 20% off Virgin Experience Days and other Virgin Group discounts.

Always use an eligibility checker to see your chances of being accepted for a card before you apply, which won’t show on your credit report.

Pros & Cons

Not an ‘up to’ so 12 months guaranteed if you’re accepted
29 months 0% period if you have balance to transfer (3.0% fee)
Free use of Virgin customer lounges

Longer 0% money transfer terms available
Relatively high money transfer fee
No balance transfers from Virgin or Clydesdale Bank credit cards

What is a 0% money transfer credit card?

A 0% money transfer card allows you to transfer cash from a credit card across to your bank account.

The idea is to pay off non-credit card debts, such as overdrafts and loans. But you could also use the money to pay for large purchases with your debit card.
There will be a specified time period where the interest on the money transferred remains interest-free.

So long as you repay the debt during this time period, the borrowing won’t have cost a penny in interest. This means you can pay off your debts quicker and more cheaply.

What can 0% money transfer cards be used for?

You can save a lot of money if you use a 0% money transfer card to pay off existing debts that’s being charged at high interest rates. But to avoid swapping one expensive debt for another, you should clear the balance within the interest-free period.

Money transfer cards can also simplify your finances. If you have multiple debts, you can pay them all off with cash from a money transfer card. Then, instead of having to make multiple debt repayments each month, you will just need to make one payment each month to the new card.

Money transfer cards are ideal for paying off non-credit card debts. If you want to pay off an existing credit card balance, a 0% balance transfer card is a better option. There’s a much wider choice of deals available too.

How long can I get at 0% on a money transfer card?

Money transfer cards come and go from the market. Currently, the longest you will find (and so long as you have a strong credit score) at 0% is 18 months.

What happens after the 0% rate expires?

When the promotional 0% offer ends, you’ll be charged interest on the money you owe and this can be higher than standard credit card rates.

To avoid paying interest you should aim to repay your total balance within the promotional period.

What methodology did we use?

To rank the 0% money transfer card offers, we used the following criteria (listed in order of importance):

0% money transfer duration
Cost of money transfer fee
Representative APR (the variable interest rate charged after the 0% period expires)
Any rewards, perks and benefits

We employed the ‘best case scenario’ to our rankings, assuming in all cases that an application is returned with the longest advertised 0% duration on money transfers, along with the lowest advertised money transfer fee and annual percentage rate (APR).

Frequently Asked Questions (FAQs)

Are there any fees on a 0% money transfer credit card?

There is almost always a fee attached to a 0% money transfer card.

This is expressed as a percentage of the debt you transfer, with a minimum cash amount. For example, 3% with a minimum of £5. If you transferred £2,000, a 3% fee would mean you pay £60 and your total debt would rise to £2,060.

Money transfer fees are not always the ones you see advertised. They can vary according to your personal application and the amount you want to transfer.

The fee is payable on each money transfer transaction you make.

How do 0% money transfer cards differ to 0% balance transfer cards?

A money transfer card pays cash straight into your current account, whereas a balance transfer card pays the balance directly into another credit card held with a different provider.

How much debt can I put on my card at 0%?

When you take out a money transfer credit card, you’ll be given a credit limit. This is the maximum amount you can owe on the card at any one time.

Like balance transfer cards, money transfer cards carry a limit on how much debt you can transfer. This is normally between 90% and 95% of your available credit limit.

What rules must I stick to with money transfer cards?

Like any credit card, you must keep within your credit limit and pay at least the minimum repayment each month.

Failing to do either of these could result in your 0% promotional offer being cancelled and/or a late payment fee being charged.

Will I always get the 0% duration advertised?

Not everyone will be offered the advertised 0% money transfer deal. Some cards are advertised as ‘up to’ which means you could be offered a shorter term. It will depend on your circumstances.

Also, the annual percentage rate (APR) attached to the cards (that applies when the 0% deal ends) only needs to be offered to 51% of successful applicants, so the one you are offered could be higher.

How do I get a 0% money transfer card?

You can normally request a money transfer as part of your credit card application. Or you can do it afterwards.

You’ll need to tell the credit card provider how much you want to transfer and provide the account number and sort code of the bank account you want the money to be paid in to.

After the credit card firm approves the request, the transfer will typically arrive in your bank account by the next working day. It’s a good idea to then use this money as soon as possible for the purpose, for example to repay other more expensive debts.

Can I simply withdraw the money as cash?

You need to go through the stated process to get access to your cash. If you simply take the cash out of an ATM, the 0% terms will not apply.

In fact, it will be classed as a ‘cash withdrawal’ for which you are likely to be charged a one-off fee, as well as high rates of interest. These will also apply immediately, rather than after 56 to 59 interest-free days as is the case when you use the card to spend.

Do I need to transfer money within a certain timeframe to qualify for 0%?

Most 0% money transfer cards stipulate that you must make transfers within 60 or 90 days of getting the card.

If you make a money transfer outside of this timeframe, the terms won’t apply and you’re likely to be charged interest on your borrowing.

The money transfer fee is also likely to be higher than the one that applies to the promotional period.

Can I transfer multiple balances?

You can use money transferred to your bank account from a money transfer card to pay off different overdrafts, personal loans, buy-now-pay-later credit, car loans or even other non-credit card related debt.

However, some credit card providers won’t let you use money transfer cards to pay off other borrowing from the same lender, such as a loan, overdraft or mortgage.

What is the minimum repayment on a 0% money transfer card?

The minimum payment will be on your credit card statement. It will normally be quoted as a percentage of the outstanding debt with a minimum cash amount (up to £25 on some cards).

Can I also spend on a 0% money transfer card or transfer credit card balances?

Some 0% money transfer credit cards also have a 0% introductory offer for purchases or balance transfers, or both. These offers might be for the same length of time, or more, or less.

The card provider should contact you with fair warning, but it’s important to take note when 0% money transfer, balance transfer and purchase deals end.

Do I need a good credit record to get a 0% money transfer credit card?

Your credit limit, APR, and introductory offer period will vary subject to your individual circumstances.

It’s a good idea to use a credit card eligibility checker to find out which cards are likely to accept you before you apply. These are soft searches which don’t show on your credit report and protect your chances the next time you apply.

What tips are there for using a 0% money transfer card?

These cards are best used as a tool to serve a purpose. And the purpose is to borrow cash interest-free (although, you will need to pay a transfer fee). In this case, it’s imperative to repay your borrowing within the allocated 0% period.

One way to ensure this is to divide your borrowing amount by the number of interest-free months and set up a direct debit to the credit card provider for that amount each month. And, of course, do not use the card for any other spending in the meantime.

Other tips include using an eligibility checker before applying to protect your credit score and ensuring you shop around to get the best deal for you at the time you are ready to apply.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

Laura Howard Editor

I've been involved in personal finance and property journalism for the past 20 years, editing websites and writing for national newspapers. My objective has always been to offer no-nonsense information to readers that either saves or earns them cash.