The best 0% money transfer credit cards

Are you paying painfully high interest on your overdraft? A top money transfer credit card could cut your interest rate to zero.

Overdrafts on current accounts can be painfully expensive.

The Financial Conduct Authority (FCA) in its review of the high-cost credit market said in some cases this sort of borrowing can be more expensive than payday loans.

If you’ve been stuck in the red for a while and are struggling to find a way out one option to consider is using a 0% money transfer credit card.

These work by letting you transfer money from your credit card to your current account. Once you’ve transferred the money, you can use it to pay off your overdraft.

Credit card companies usually charge very high rates of interest on this sort of cash advance, higher than you would pay with most overdrafts.

However, 0% money transfer credit cards allow you to transfer money from your card at 0% interest for an introductory period.

This is very similar to a 0% balance transfer. There are only two differences:

1. You’re transferring money from a card to a bank account, instead of transferring a debt from a card to another card.

2. The fee is often higher for a money transfer than for a balance transfer. Money transfer fees are usually around 4% whereas balance transfer fees are typically between 1.5% and 3%.

The longest 0% money transfer deals

Here are the longest lasting 0% money transfer deals around.

 

0% money transfer period

0% money transfer fee

Cost of moving £2,000

APR

Virgin 41-Month Balance Transfer Credit Card

41 months

3.8%

£76

20.9%

Virgin 36-Month Money Transfer Credit Card

36 months

2.9%

£58

20.9%

Virgin 27-Month All Round Credit Card

27 months

2.7%

£54

18.9%

Virgin All Round Credit Card

25 months

2%

£40

18.9%

Virgin Money 38- Month Balance Transfer Credit Card

20 months

1.9%

£38

20.9%

Right now, the longest lasting deal allows you to freeze the size of your overdraft debt for more than three years.

The Virgin 41-Month Balance Transfer Credit Card gives you a colossal 41 months of 0% interest on money transfers as well as on balance transfers.

Money transfers on the card attract a 3.8% fee, which means if you have a £2,000 overdraft debt to clear you’ll have to pay £76. If you haven’t paid off the resulting debt within the 0% period, you’ll then start paying interest at 20.9%.

You also have the choice of the Virgin 36-Month Money Transfer Credit Card, which offers a still impressive 36 months of 0% interest on money transfers as well as balance transfers.

This card charges a more competitive 2.9% fee on money transfers, so if you have a £2,000 overdraft you will need to hand over £58 but, you’ll have to start paying interest at 20.9% if you don’t pay it back in time.

The cheapest 0% money transfer deals

If you’re able to clear your debt in less time you could benefit from a cheaper 0% money transfer deal.

Here are the top deals charging 2% or less on 0% money transfers.

 

0% money transfer period

0% money transfer fee

Cost of moving £2,000

APR

Virgin All Round Credit Card

25 months

2%

£40

18.9%

Virgin Money 38- Month Balance Transfer Credit Card

20 months

1.9%

£38

20.9%

Other options to clear overdraft debt

If a money transfer isn’t for you, another option is to take out a personal loan. See The cheapest personal loans for the best rates right now.

The rates on offer are significantly less than an overdraft at 19%, but again you’ll only be accepted at this rate if your credit score is good. 

If your credit rating isn’t perfect, you may be offered a loan at a higher rate but if it’s below the amount attached to an overdraft then it is still worth going for.

For other ideas take a look at Ways to get rid of your overdraft for good.

Compare the market-leading credit cards

This article is regularly updated to reflect the best deals

 

More on credit cards:

The best reward credit cards

The best cashback credit cards

The best 0% purchase credit cards

The best credit cards to use abroad

The best 0% balance transfer credit cards

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