How do balance transfer cards work in practice?

Hi, I’ve never used a balance transfer card before. I understand the principle, but how does it work in practice? Specifically, what happens to the first card - is it closed or is it still usable?

As an example, let’s say I have a Barclaycard with a £9,000 balance and £10,000 credit limit. I open a Halifax balance transfer card, with a £12,000 credit limit that charges 3% on transfers.

I transfer my full balance, so I owe £9,270 to Halifax and need to make at least min payments. Does my Barclaycard stay open, with £10,000 available, or does to have to be closed?

Comments

  • GSP
    GSP Posts: 894 Forumite
    Seventh Anniversary 500 Posts Name Dropper Combo Breaker
    Should stay open as far as I am aware. Other will confirm hopefully.

  • tempus_fugit
    tempus_fugit Posts: 1,189 Forumite
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    It’s always stayed open whenever I’ve done a BT before, just it gets zeroed when the transfer is done.
    Retired at age 56 after having "light bulb moment" due to reading MSE and its forums. Have been converted to the "budget to zero" concept and use YNAB for all monthly budgeting and long term goals.
  • molerat
    molerat Posts: 34,332 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    A balance transfer is simply paying your credit card balance off in exactly the same way as you would yourself.  It is not like current account switching where the account gets closed.
  • Martico
    Martico Posts: 1,153 Forumite
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    As above, it stays open
  • WillPS
    WillPS Posts: 4,946 Forumite
    Part of the Furniture 1,000 Posts Newshound! Name Dropper
    As far as the receiving account is concerned, a balance transfer is just a bank transfer payment.
  • Thanks everyone, that’s really good to know. 
  • cymruchris
    cymruchris Posts: 5,557 Forumite
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    Thanks everyone, that’s really good to know. 
    Barclaycard being Barclaycard if that happens to be one of your accounts does have a habit of lowering credit limits recently - you might find that on clearing the balance if you've held it for a while might trigger a lowering of the limit. 
  • Ebe_Scrooge
    Ebe_Scrooge Posts: 7,320 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    As per all the previous replies, the original card stays open and available for use.
    And there's the bit you need to be a bit disciplined about.  There's nothing to stop you going out and start merrily spending again on the Barclaycard once you've cleared it.  But of course, if you're not careful, you're very quickly looking at double the debt you started with.
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