Will you be charged a transfer fee?
You may be charged a one-off transfer fee when you move a balance from one card to another. The fee is usually shown as a percentage of the amount you’re transferring and can change from card to card.
If you transfer a balance of £500 using a card with a 3% fee, for example, this will work out to a one-off charge of £15. Some balance transfer credit cards also charge an annual account fee. Make sure you check the terms and conditions when you apply so you know what you’re signing up for.
Capital One balance transfer credit cards come with a 4% or 3% transfer fee and we don’t charge any annual fees.
You can try our fee calculator to work out what your balance transfer fee might be.
Are you sure what APR you’re getting?
Did you know that credit card providers only have to offer the advertised APR to 51% of people who apply for their cards? This means the remaining 49% could end with a different APR to the one that is advertised. This will often be higher than the headline rate. However, at Capital One we’re a bit different. All our credit card customers get the APR that we advertise.
0% interest isn’t always the best deal
Although 0% interest may sound like a good deal for a balance transfer credit card, the longer the deal lasts the bigger the upfront fee is more likely to be. So, for example, if you think you can clear your balance in five months, you may be better off going with a shorter term deal.
You’ll also need an excellent credit score to qualify for most long term 0% deals.
What happens when your 0% period ends?
Not everyone manages to clear their debt within the offer period. As soon as the 0% interest-free period ends, card providers might start charging you a higher rate of interest. You may find that higher interest rates can end up costing you more and could increase your debt.
Can applying affect your credit score?
When you apply for any form of credit like a balance transfer card, your credit score could go down because you’re taking on more debt and could owe more. But this may only be a short-term thing. If you make your payments on time every month and don’t go over your credit limit, you could reverse that drop in your score and even start to improve it as the months go by.
Never miss a payment
Missing or forgetting to make a payment could cost you more than just a late fee. Some credit card providers will cancel your 0% offer if you break their terms and conditions. Meaning you’ll lose the offer you signed up for.
Capital One won't do this, but missing a payment will affect your credit score and you could be charged a fee. Setting up a Direct Debit to make (at least) the minimum payment each month automatically could help you avoid missing a payment if you have enough cash in your account.
Is there a minimum or maximum amount you can transfer?
With a Capital One balance transfer credit card, the minimum amount you can transfer is £50 plus the . transfer fee. You’ll only be able to transfer an amount that is less than the credit limit of your new balance transfer card. You should also make sure that this balance plus your transfer fee don’t take the total balance over your credit limit.