Best Money transfer credit cards

A money transfer credit card lets you transfer funds from the credit card directly into your bank account, which you can then use for anything - clearing an overdraft, paying a bill that doesn’t accept credit cards, or managing a large expense. Most of the best money transfer credit cards offer a 0% interest period on the transferred amount, typically for 6-24 months. You usually pay a one-off transfer fee when you move the money.

You apply for a money transfer credit card and, once approved, request a transfer of a set amount to your bank account. A transfer fee (typically 2-4% of the amount transferred) is charged upfront. During the 0% interest period, no interest accrues on the transferred amount as long as you make the minimum monthly payments. If you haven’t paid off the balance by the end of the 0% period, interest is charged at the card’s standard rate.

Money transfer credit cards can be a good way to clear an expensive overdraft or access funds at a lower cost than a personal loan, provided you can repay the balance within the 0% interest period. They’re not designed for everyday spending - the transfer fee and eventual interest charges make them expensive if used that way. Always have a plan to repay the balance before the 0% period ends.

A balance transfer card moves existing credit card debt from one card to another, usually at 0% interest. A money transfer card moves money directly into your bank account, which you can then use however you like, including paying off an overdraft or a non-card debt. Both typically offer an introductory 0% interest period and charge a one-off transfer fee. Use a balance transfer card for existing credit card debt; use a money transfer card when you need the funds in cash.

Most money transfer credit cards charge a one-off fee of 2-4% of the amount transferred when you move money to your bank account. For example, transferring £5,000 would cost £100–£200 in transfer fees. Some cards offer promotional 0% transfer fees for a limited time. It’s worth comparing both the transfer fee and the length of the 0% interest period when choosing the best money transfer credit card, as a lower fee doesn’t always mean a better deal overall.