Got unexpected expenses or mounting card debt? Most people jump straight to personal loans for consolidation. But those come with 6–7% interest and hefty repayment costs. There is a better option that few talk about…
Balance transfer cards can offer 0% interest free periods for up to 12 months. You can get them completely free for up to 3 months with the best deal around, or in exchange for a one-off processing fee for a longer period. Read on to find out:
- How balance transfer cards work
- Which banks offer 0% cards (and their processing fees)
- In the news: Money Luna has been recognised with the "Most Trusted Consumer Finance Guide 2025 - UAE” award
What are balance transfer cards?
A balance transfer card lets you move existing credit card debt onto a new card that offers 0% interest for a set period (typically 3, 6, or 12 months).
In practice, it’s a way for banks to win new customers while giving you a temporary window of low-cost borrowing. Keep in mind it’s not completely free, as you’ll usually pay a one-off processing fee when you transfer the balance.
How do balance transfer cards work?
- Apply for a new card with a bank that offers balance transfers (make sure you have a good credit score to get approved)
- Request the transfer once your card is issued, choosing how long you want the 0% interest period to last.
- Check the terms carefully as fees and conditions vary by bank and by customer.
- Tell the bank which balances to move (you can transfer part or all, from one or several cards).
- Pay the one-off fee, usually a percentage of the amount transferred.
- Make at least minimum payments every month (normally around 5%).
- Save up to clear the debt in full before the 0% period ends.
Top UAE balance transfer card offers (August 2025)
There are currently 8 banks in the UAE that offer 0% balance transfer cards, and publish their one-off processing fees by tenure.
The processing fee is applied on the balance to be transferred, so the more you transfer, the more you pay (though this is still much better than paying monthly interest on the balance elsewhere).
Commercial Bank International stands out as a winner with its 3 and 6-month offers, at 0% and 1% processing fees.
| 0% interest period | Bank | One-off processing fee |
|---|---|---|
| Up to 3 months | Commercial Bank International (CBI) | 0% |
| Sharjah Islamic Bank | 1% | |
| RAK Bank | 1.95% | |
| Up to 6 months | Commercial Bank International (CBI) | 1% |
| Sharjah Islamic Bank | 2% | |
| Emirates Islamic | 2.99% | |
| Citi Bank | 3% | |
| Standard Chartered | 3% | |
| Commercial Bank of Dubai (CBD) | 3.5% | |
| Up to 12 months | First Abu Dhabi Bank | Up to 4% |
| Commercial Bank of Dubai (CBD) | 4.5% |
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⚠️ Before you jump on a deal, remember…
Balance transfers can save you money, but only if you use them wisely. Keep these rules in mind:
- Clear the balance in time: If you don’t repay in full before the 0% period ends, interest charges kick in fast.
- Minimum payments still apply: Expect to pay around 5% of the balance every month.
- Limits matter: Banks usually let you transfer only 75–90% of your new card’s limit.
- Act quickly: You often need to request the transfer within 30 days of getting the new card.
- Don’t use it for new spending: This card is for debt consolidation or paying off a large expense, not taking on new debt.
- Don’t go too small: There’s usually a minimum of 1,000 (and a minimum fee), so avoid using this for tiny balances.
- Early repayment isn’t always free: Some banks charge about 1% of the outstanding balance if you want to clear it sooner.
IN THE NEWS - Money Luna has been recognised with the "Most Trusted Consumer Finance Guide 2025 - UAE” award
This week’s “In the news” segment is personal to us. We’ve been recognised as the “Most Trusted Consumer Finance Guide 2025 - UAE” at the Worldwide Finance Awards, run by Acquisition International
For ten years now, Acquisition International’s Worldwide Finance Awards have been recognising and celebrating those innovating and strengthening finance processes around the globe. And that’s exactly what we do. We started ML with a simple idea: make UAE finance clear, impartial, and useful for everyone. To now be recognised for that mission is a huge milestone - and it wouldn’t have happened without you, our readers and supporters.
So thank you for your continued support, engagement, and discussions. Want to see the full details? Here’s our award page
