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What is a balance transfer?

How you can use a credit card to help manage your finances.

A balance transfer is when you move your existing credit card balance(s) to another credit card with a different provider.

  • This can help you keep all of your borrowing in one place.
  • You could receive an introductory or promotional rate for a set period of time.
  • Balance transfers are subject to approval. Balance transfer fees may apply.

Why is a balance transfer useful?

Keep your credit card borrowing in one place

Moving multiple credit card balances onto a single card can make life easier, with one balance to keep track of and one payment to make each month. A balance transfer can help you do this.

You could get an introductory or promotional interest rate

If you transfer your borrowing to a card with a low promotional/introductory interest rate – sometimes 0% – you could cut your monthly interest payments, so you can pay off what you owe sooner.

More about introductory interest rates

A closer look at balance transfers

You may be charged a balance transfer fee

Your balance transfer fee is usually worked out as a percentage of the balance you’re moving across. If you make multiple balance transfers, you’ll likely be charged for each one.

You’ll also pay interest, depending on your rate

You might get an introductory interest rate for a set period of time. Or, you might pay your standard balance transfer rate. Either way, the sooner you clear your balance, the less interest you’re likely to pay.

You can’t transfer between two cards with the same provider

For example, you can’t transfer your balance from one Lloyds Bank credit card to another. There are also some store cards you can’t balance transfer from, so check with your provider beforehand.

The minimum balance you can transfer is £100

On the other hand, the maximum varies from person to person depending on your overall credit limit and credit available at the time.

How a balance transfer works in practice

We’ve simplified this example, using a balance transfer credit card with promotional 0% balance transfer rate that lasts for 12 months.

  1. You have £2,000 of balances on your credit cards, with an annual interest rate of 20%.
  2. You have another card with a 0% promotional offer for 12 months and a 1% balance transfer fee.
  3. You transfer your balances across to this credit card with a promotional offer. You now owe a total of £2,020 including the fee.
  4. With £202 paid on time each month for 10 months, and no other spending, you can clear your credit balance without paying any interest.
  5. The promotional rate will expire after 12 months. If the balance isn’t fully repaid, any remaining amount will revert your standard balance transfer rate.

How you can make the most of your balance transfer

First, explore all your options carefully, checking fees, interest rates and terms to make sure a balance transfer is right for you.

  • When planning a balance transfer, be realistic about how long it will take to pay off your balance.
  • Pay off as much as you can during any promotional periods to pay less interest, as your standard interest rate for balance transfers will be higher.
  • If you break your credit card’s terms and conditions, for example by not making your minimum payment on time or going over your credit limit, you could lose any promotional interest rates and offers you have.
  • If you use a balance transfer card for other purposes such as everyday spending, the standard purchase rate might be higher – meaning you could be charged more interest.
  • Remember to keep making all your regular card payments until your balance transfer has been confirmed by both credit card providers. 

How to make a balance transfer with us

If you’re an existing Lloyds Bank customer, simply log on to Internet Banking or the Mobile Banking app to see what balance transfer offers are available to you. Remember, you can’t transfer balances between two Lloyds Bank credit cards.

You should also make sure that you:

  • Have read the terms and conditions and understand your fees and interest rates.
  • Know all of the relevant card details, such as credit card numbers.
  • Have your phone to hand, as you’ll be required to complete a security check.

Log on to Internet Banking

New customer looking to make a balance transfer?

The first step is to find a balance transfer card that’s right for you using One Check – our easy to use eligibility checker that doesn’t affect your credit score.

Explore balance transfer cards

Check your eligibility

Frequently Asked Questions

Key points on balance transfers

  • A  balance transfer lets you move a balance from an existing credit or store card to another card with a different provider.
  • With all of your borrowing in one place, your balances could be easier to manage. Plus, you could receive an introductory or promotional interest rate for a set period of time.
  • The minimum balance you can transfer is £100, the maximum is dependent on your credit limit.
  • It can be expensive to use a balance transfer card for other purposes such as everyday spending, as the standard purchase rate might be higher.
  • A balance transfer is one of four ways to use a credit card, including card purchases, money transfers and cash transactions.

Where next?

Important legal information

Lloyds Bank plc. Registered office: 25 Gresham Street, London EC2V 7HN. Registered in England and Wales No. 2065. Lloyds Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 119278.