With 52% of customers paying credit card interest each month, TotallyMoney highlights how much money people can save with a balance transfer, even if they have a poor credit score:

• The market-leading balance transfer product could help excellent credit score customers reduce payments by £1,285 and stop paying interest until February 2026*
• Those with a good credit score might be eligible for a 16 month card, saving £666*
• Poor credit file customers may have options available, with a 9 month card offering average savings of £346*
• In the past 12 months, interest-bearing balances have crept up by £262, from £2,486 to £2,748†, while the effective interest rate on cards has increased by 2.1 percentage points‡, meaning people are not only borrowing more, but also paying more for it
• During the same time, banks have slashed the average balance transfer offer by more than two months (69 days), and cranked fees up by 0.3 percentage points§

Below, we provide insights into the savings, share what to watch out for when applying, and Alastair Douglas provides his five top tips for credit score improvement, so customers can unlock the best offers and create financial momentum.

 Play your cards right

Data shows that 52% of customers are paying interest¶, with an average credit card debt of £2,748. For a small transaction fee (typically 3-4%), a balance transfer credit card lets people pause interest payments for a set number of months (currently up to 29). In doing so, they can repay their debts quicker, use the money to cover the increased cost of living, or put it into savings.

The table below highlights some of the best products on the market for each credit score band, and the potential savings for the average interest-bearing credit card balance.

Don’t bank on luck

Before applying, customers should always check their credit score to make sure the information is correct and up to date. Compararing offers across different sites, and checking their eligibility means they can get a full-market view, and find out their chances of being accepted.

Balance transfers will usually carry fees of around 3-4% of the amount being moved, and most lenders will only let you shift a percentage of the credit limit offered — often 90-95%. This means if you’re accepted for a limit of £1,000, you might only be able to transfer £900-£950. In addition, most providers won’t let you transfer balances between their own products — and they’ll expect you to make the transaction within the first 60-90 days of opening the account.

Finally, avoid using your balance transfer card for making purchases. Often these won’t be included in the 0% deal, and instead could come with hefty interest rates.

 Alastair Douglas, CEO of TotallyMoney comments:

“Millions of people are paying hundreds, sometimes thousands of pounds on credit card interest. For eligible customers, this could be avoided with a balance transfer card. Cutting interest means more money to put towards everyday expenses, or to pay off debts quicker.

“If current trends of worsening offers and increased debt continue, now could be the time to make the move and see if a balance transfer card is right for you. Once you’ve checked your credit report and done your research, use an eligibility checker to see how likely you are to be accepted. This can help you avoid rejection, and won’t leave a mark on your credit file.

“Always remember to transfer the balance within the required time frame, make your repayments on time, and avoid using the card for purchases — these can incur higher rates and put more stress on your finances.

“Our free app puts customers in control of their own data, and notifies them when they’re paying interest. That way people can keep one step ahead of the banks, and keep their finances moving forward.”

 Alastair Douglas shares his five top tips for credit score improvement:

“The best credit offers will usually only be available to those with the best credit scores. This doesn’t just mean cards, loans and mortgages, but also other forms of borrowing which include car finance and mobile phone contracts. A good score could even be the difference between paying for energy and gas by Direct Debit or being on a prepayment meter. So by taking a look at your credit report, you can find out what’s holding you back, and take the right steps to start moving forward.”

1. Check your report: 

“Everybody should check their credit report regularly. You’ll not only be able to make sure it’s up to date, but you can also keep an eye out for any fraudulent activity happening in your name. What’s more, it’s completely free to do.”

2. Get on the electoral register:

“It doesn’t matter if you’re planning on voting, being on the electoral register can help lenders check your address and identity, meaning you could be more likely to be accepted for offers.”

3. Satisfy any County Court Judgements (CCJs):

“If you have any outstanding CCJs you can satisfy, then you should — as it could make you look more favourable to banks.”

4. Try to never miss a payment:

“It can be really hard to keep up with the cost of living while trying to manage bills at the moment, but if you can then try to never miss a payment. If you’re struggling to keep up, then get in touch with your lender to see if they can give you some breathing space.”

5. Keep an eye on your credit utilisation:

“Using less than 25% of the credit available to you can help show lenders that you’re not too reliant on it. For example, if you have a total credit limit of £1,000 then use less than £250. In the long run this could also help you increase your balances, and access better deals.”