Money Transfer Credit Cards

What is a money transfer credit card?

Some credit cards will allow you to transfer money to your current account. These cards are sometimes also known as 'super balance transfer' cards.

Are there any drawbacks to using a credit card for a money transfer?

Money transfers could be suitable if you're being charged interest on an overdraft or if you're looking to buy something that you either can't use your card for or would be charged a hefty fee. But avoid them if you don't think you'll be able to pay back the money within the promotional rate period. You'll also need to make at least the minimum payment each month. Money transfers usually incur an arrangement fee- it's worth considering this when deciding if a money transfer is right for you.

If you're paying off an overdraft, you'll also need to be disciplined and make sure that you'll pay off the debt instead of just spending more and dipping back into your overdraft.

How are money transfers different to cash withdrawals and balance transfers?

Cash withdrawals are generally charged at a far higher rate of interest than money transfers. A balance transfer usually involves the transfer of an existing balance on another credit card to a new card.

Which cards offer money transfers?

Typically money transfer cards are provided by MBNA, AA and Fluid.

You can find out more with our article about money transfer credit cards.

Glossary of key terms for money transfer credit cards

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.

Available Credit

Your current credit limit minus your current outstanding balance.

Cash Advances

You obtain a cash advance by using your card to draw cash. Cash advances will invariably attract interest from the moment they are made, so there is no 'interest free' grace period.

Cash Advance Fee

You will also be charged for using your card to draw cash. The charge might be made as a flat-rate fee on each withdrawal or taken as a percentage of the amount of cash advanced.

Cash Advance Rate

This is the rate of interest attracted by your cash advance. Interest is invariably attracted from the moment it is made and the rate of interest for this facility could be higher than the card provider’s standard rate on regular purchases.

Credit Card Issuer

This is the company who processes payments made with the card. The three main issuers are Mastercard, VISA and American Express.

Credit Limit

This is the maximum amount that your credit card company will allow as credit i.e. a limit that cannot be exceeded as the balance owing on your credit card.

Joint Account Holder

Unlike an authorised user a Joint Account Holder has the same borrowing privileges as the main account holder, but they too will be responsible for the repayment of the account balance.

Withdrawal Limit

This relates to cash advances and is the maximum you can withdraw, either at a cash machine or over the counter at a bank, in any single day.

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