Transfers and purchases credit cards

About Transfers & Purchases Credit Cards

What is a transfers & purchases credit card?

A transfers and purchases credit card is a card that offers the benefits of both a balance transfer card and a purchases card. They offer zero percent introductory periods on any balances transferred to the card from other credit accounts and on any spending on the card. Balance transfer cards often only offer a short zero percent period on spending as they aren’t aimed at customers who wish to use the card for shopping, whereas purchase credit cards often only offer short zero percent periods on any balances transferred to the card, a transfer and purchases card allows you to do both.

Are there any drawbacks to a transfers and purchases card?

As the cards feature introductory rates on both transfers and purchases the length of the periods tend to be shorter than the market leading cards for both types. If you have a balance on your current card that you think will take longer to pay off then you may get a better deal if you take out one balance transfer card and one purchase card.

Can anyone get a transfers and purchases card?

Transfers and purchases cards are typically aimed at those with good credit rating. You can use our free Card Matcher tool to check the likelihood of being accepted for a card before you apply.

You can also check your credit rating for free to find out what you can do to make sure you get the credit you want.

Which providers offer this type of card?

Many credit card providers offer cards with zero per cent introductory rates on transfers and purchases, but typically the longest introductory periods are provided by Barclaycard, Nationwide and Halifax.

Key Transfers & Purchases Credit Cards Terms

Balance Transfer

This is when you move an outstanding balance from one card onto another. If a card has a Balance Transfer Intro Rate it relates to the interest that is applied to the transferred balance and the duration the intro rate is applied for. So for example a 0% balance transfer intro rate for 12 months will mean that no interest will be added to your account for the balance transferred for 12 months from the date the account is opened. To qualify for the introductory rate you will need to transfer your balance within a set period from the account opening, this time limit varies by issuer. When the intro rate ends then you will be charged interest at the cards annual percentage rate (APR).

To ensure you maintain any introductory rates applied to your account you must manage the account in line with the issuer’s terms and conditions. Specifically that means that you must always make at least the minimum payment, on time each month, and must remain within your set credit limit.

Balance Transfer Intro period

This is typically the period you will be offered 0% interest on any balance you move. The duration will vary by provider with the leading rates often reserved for those with excellent credit profiles

Balance Transfer Fee

Sometimes also called a Balance Transfer Handling Fee. This is a charge that is applied if you do move a balance onto your new card. It is usually calculated as a percentage of the balance you wish to transfer, typically it is around 3%. So for example transferring a £2,000 balance onto your new card with a balance transfer handling fee of 3% will incur a charge of £60, this is added to the balance on the card.

Purchases

This is where you pay for goods or services using your card– it doesn’t include things like cash withdrawals, cash advances or money transfers.

Purchase Introductory Rate

This relates to the interest that is applied to any purchases made and the duration that the introductory rate is applied for. So, for example, a 0% purchase introductory rate for 12 months will mean that no interest will be added to your account for any purchases made for 12 months from the date the account is opened. When the introductory rate ends then you will be charged interest at the card's annual percentage rate (APR).

To ensure you maintain any introductory rates applied to your account you must manage the account in line with the issuer’s terms and conditions. Specifically, that means that you must always make at least the minimum payment on time each month, and must remain within your set credit limit.

Providers

We offer an independent service to compare all UK credit cards. Click below for more information about some of our providers:

• AA
• American Express
• Aqua
• Bank of Scotland
• Barclaycard
• Capital One
• Creation
• Fluid
• Granite
• Halifax
• HSBC
• Lloyds TSB
• M&S
• Luma
• MBNA
• Nationwide
• Natwest
• Play.com
• Post Office
• RBS
• Sainsburys
• Santander
• Tesco
• Vanquis
• Virgin