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Balance Transfers, Card Instalment Plans and Buy Now Pay Later in the UK

By PointsExplainedLast reviewed

List what you owe and at what rate

Write down each balance, its interest rate and when any current promotional rate ends.

Check eligibility with a soft search

Use an eligibility checker before applying, so that you only make full applications, which leave hard searches, where you are likely to be accepted.

Transfer within the window

Request the transfer when you apply or as soon as you are accepted; if you miss the issuer's deadline, the promotional rate may not apply.

Set a Direct Debit that clears the balance in time

Divide the balance plus fee by the months in the offer and pay at least that each month, never less than the minimum.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. Barclaycard: What is a balance transfer and how does it work?

    Balance transfer mechanics: lower/0% rate for limited time then normal rates; fee on amount transferred added to balance; most transfers carry a fee; transfer window after acceptance or offer expires; amount depends on credit limit and room for fees; no transfers from Barclaycard or partner-branded cards; missing a payment or exceeding the limit means paying interest; purchase offer can differ in length; reminder before expiry.

    barclaycard.co.uk · Accessed
  2. FCA Handbook CONC 6.7: Post-contract business practices

    Payment allocation to highest rate first (6.7.4R); fixed instalment plans: best-interests and informed-decision requirement (6.7.4BR), cash-balance example (6.7.4CG), guidance on information and missed-payment implications incl. credit reference reporting (6.7.4DG); persistent debt rules (6.7.27R, 6.7.30R).

    handbook.fca.org.uk · Accessed
  3. FCA: Buy Now Pay Later

    Deferred Payment Credit regulated from 15 July 2026; definition (interest-free, 12 or fewer instalments over 12 months or less); regulated only where lender and supplier differ; authorisation or temporary permissions regime; affordability checks, pre-contract information, contact on missed repayments, support; Section 75 available; complaints to the Financial Ombudsman; pre-15 July 2026 agreements unregulated.

    fca.org.uk · Accessed
  4. Experian: Searches on your report - soft and hard credit checks

    Eligibility checks use soft searches that lenders cannot see; applications leave hard searches.

    experian.co.uk · Accessed
  5. HSBC UK: What is a credit card interest-free period?

    End date of an interest-free period shown on the credit card statement; standard rate applies to any remaining balance when it ends.

    hsbc.co.uk · Accessed
Questions

About this guide

What happens when my 0% offer ends?

The card's normal interest rate applies to whatever balance remains. HSBC says you should be able to find the end date of an interest-free period on your credit card statement.

Can I transfer a balance between two cards from the same bank?

Often not. Barclaycard, for example, only accepts transfers from cards issued by other banks. Check your new issuer's terms before applying.

Is buy now pay later now covered by section 75?

For Deferred Payment Credit agreements taken out from 15 July 2026 where the lender and seller are different businesses, the FCA says section 75 is available.
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