Does A Balance Transfer Count As A Payment?

When you are planning to make a balance transfer, one question that you maybe looking to answer is, does a balance transfer count as a payment?

Making at least the minimum payment to your credit card company, on time every month, is vital if you want to keep your credit rating in good standing.

Credit card customers also need to make the monthly payment on time, to avoid any late payment fees,  charged by the credit card company.

Does A Balance Transfer Count As A Payment?

So does a balance transfer count as a payment?

In most cases the answer to the question is yes, a balance transfer does count as a payment. The balance transfer will be treated like a normal payment made to the credit card company that receives it.

The receiving credit card company will receive a payment, via the banking system in the normal way and allocate it against that credit card account.

The only difference from your usual monthly payment to the credit card company, is that the payment will come, not from your own bank account, but from the account of the credit card company that you are transferring the balance too.

It is however, important to be aware of how long a balance transfer takes to complete.

It used to take up to 3 weeks for a balance transfer to go through, although now the introduction of faster payments rules means that most balance transfers clear in a couple of days.

It is still important that you ensure that there is enough time for the balance transfer to reach the receiving credit card account, before any monthly payment is due.

The following popular featured credit cards all offer 0% balance transfers that will count as a payment to your existing credit card:-

Card Offers

HSBC*

Balance Transfers:

0% for 28 Months

Balance Transfer Fee:

1.4%

Purchases:

0% for 3 Months

Representative APR:

21.9% APR (variable)

Card Details

HSBC*

• 0% interest on balance transfers for 28 months made within 60 days of account opening
• 1.4% balance transfer fee (minimum £5)
• 0% interest on purchases for 3 months from account opening
• At the end of 0% offer period, balance transfers and purchases will revert to standard variable rate
• home&Away rewards programme giving you instant discounts from well-known brands
• Online account management
• Annual Fee: None

Application Criteria

HSBC*

• You have an annual income or pension before tax of £8,500 or more
• You are a UK resident, including Isle of Man and Channel Islands
• You are aged 18 or over
• You do not hold an HSBC Basic bank account

Card Offers

M&S Transfer Plus*

Balance Transfers:

0% for 28 Months

Balance Transfer Fee:

0.99%

Purchases:

0% for 6 Months

Representative APR:

19.9% APR (variable)

Card Details

M&S Transfer Plus*

• 0% for 28 months on balance transfers made within 90 days of account opening
• 0.99% balance transfer fee, minimum £5
• 0% on purchases for 6 months from account opening
• Collect M&S points every time you shop anywhere in the world with your card
• Preferential rates when you use your card to order M&S Travel Money
• Manage account online
• Annual Fee: None

Application Criteria

M&S Transfer Plus*

• You are a UK resident
• You have a UK bank or building society account
• You are aged 18 or over
• You have not held a credit card with M&S Bank within previous 12 months

Card Offers

M&S Shopping Plus*

Balance Transfers:

0% for 20 Months

Balance Transfer Fee:

2.9%

Purchases:

0% for 20 Months

Representative APR:

19.9% APR (variable)

Card Details

M&S Shopping Plus*

• 0% for 20 months on balance transfers made within 90 days of account opening
• 2.9% balance transfer fee, minimum £5
• 0% on purchases for 20 months from account opening
• Collect M&S points every time you shop anywhere in the world with your card
• Preferential rates when you use your card to order M&S Travel Money
• Manage account online
• Annual Fee: None

Application Criteria

M&S Shopping Plus*

• You are a UK resident
• You have a UK bank or building society account
• You are aged 18 or over
• You have not held a credit card with M&S Bank within previous 12 months

Card Offers

Nationwide Select Credit Card just for Nationwide members*

Balance Transfers:

0% for 12 Months

Balance Transfer Fee:

0%

Purchases:

0% for 12 Months

Representative APR:

15.9% APR (variable)

Card Details

Nationwide Select Credit Card just for Nationwide members*

• 0% on balance transfers for 12 months from account opening
• 0% balance transfer fee within first 3 months, 2.4% fee applies after, minimum £5
• 0% on purchases for 12 months from account opening
• Unlimited commission free purchases abroad
• Manage account online
• Annual Fee: None

Application Criteria

Nationwide Select Credit Card just for Nationwide members*

• Nationwide credit cards are just for members. You are a member when you have a current account, mortgage or savings account with Nationwide
• Nationwide Select Credit Card is only available to members who hold their main current account with Nationwide
• You have been living in the UK for the last 12 months
• You have a gross income each year of more than £5000
• You have a good credit history
• You are aged 18 or over

Card Offers

Asda Cashback*

Balance Transfers:

0% for 12 Months

Balance Transfer Fee:

3%

Purchases:

No offer

Representative APR:

19.9% APR (variable)

Card Details

Asda Cashback*

• 0% on balance transfers for 12 months
• 3% balance transfer fee, minimum £3
• 0% for 6 months on purchases of £200 or more at George.com
• 1% cashback on your Asda shopping online and instore
• 1% cashback at Asda Living, Asda petrol stations and George.com
• 0.2% cashback everywhere else
• Annual Fee: None

Application Criteria

Asda Cashback*

• You are a permanent UK resident
• You have a UK bank or building society account
• You are able to provide at least one telephone number
• You have a regular source of income
• You are aged 18 or over

If you are unsure whether the balance transfer will complete before the due date of your monthly payment, then you should make at least the minimum payment for that month.

This will avoid any damage to your credit rating and also avoid any late payment fees which which may be charged by the credit card company if the monthly minimum payment is late.

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