How do balance transfer cards work in practice? 6 October 2022 at 6:30PM in Credit cards 8 replies 152 views

bringingit

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?

GSP

Should stay open as far as I am aware. Other will confirm hopefully.

tempus_fugit

It’s always stayed open whenever I’ve done a BT before, just it gets zeroed when the transfer is done.

molerat

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

As above, it stays open

WillPS

As far as the receiving account is concerned, a balance transfer is just a bank transfer payment.

bringingit

Thanks everyone, that’s really good to know. 

cymruchris

bringingit said:

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

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.