Can I keep transferring credit card balances?
Written by
Emily Tye
Reviewed by
Amy LancashireYes, you can. There is no legal limit on how many times you can move a credit card balance from one card to another. In practice, though, doing it repeatedly runs into real barriers: a rule that stops you transferring to cards from the same provider, fees that stack up with each move, the effect of multiple credit applications on your credit score, and each individual lender’s decision about whether to approve you.
If you are new to the topic, our overview of balance transfers explains how they work.
If you’re struggling with debt, free advice is available from StepChange and the MoneyHelper debt advice locator. Both are independent services with no cost to you.
What stops you from doing multiple balance transfers?
There is no single rule that puts a hard cap on transfers. What limits you in practice is a combination of four things.
The card family rule
Most lenders will not allow you to transfer a balance to a card issued by the same provider, and many extend this to other cards within the same banking group. If your debt is on an HSBC credit card, for example, you cannot move it to a First Direct card, as both are trading names of HSBC UK Bank plc. Each time you transfer, you need to move to a different provider. The more transfers you do, the narrower your options become.
Balance transfer fees
Most balance transfer cards charge a fee when you move debt across. This could be a 3% fee on the transferred balance, for example. On a £3,000 balance, a 3% fee adds £90 each time. Transfer three times and the fees alone come to £270. The more often you transfer, the more important it is to check that the interest saving still outweighs the cost of moving.
The impact on your credit score
Each application for a new balance transfer card triggers a hard credit check, which is recorded on your credit file and visible to other lenders. Multiple hard checks in a short period can lower your credit score and reduce your chances of being approved next time. See our guide on does a balance transfer affect your credit score for a full breakdown.
Getting approved becomes harder
Even if your score stays healthy, lenders look at more than just the number. If your credit file shows a pattern of repeatedly moving balances without the underlying debt reducing, lenders may decline your application or offer a lower credit limit than you need. There is no guarantee that another transfer will be available, regardless of how well you have managed previous ones.
When does this strategy still make sense?
The strategy can potentially work when it is part of a genuine plan to pay off the debt, not simply a way of postponing it. But remember, there is no guarantee that you will be approved for a subsequent balance transfer, so it’s not something to rely on.
Before considering whether you want to transfer a balance multiple times, ask yourself these questions:
Is the debt actually reducing, or just moving?
Does the transfer fee still cost less than the interest I'd pay?
Am I planning to apply for other credit in the near future, such as a mortgage, where multiple hard checks on my file could affect my eligibility?
Do I have a clear plan to clear or transfer the balance before each 0% period ends?
What should I do if I can't get another balance transfer?
If you have been declined, or the fees are starting to outweigh the savings, there are alternatives that can be worth considering, such as a debt consolidation loan. Whether any alternative is right for your situation depends on your individual circumstances. Our guide on how to pay off credit card debt covers the main options in more detail.
FAQ
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
