Can you transfer someone else’s credit card balance?

Check whether the provider permits a third-party balance transfer, the fees and the responsibility you would take on.

How does a balance transfer work?

A balance transfer moves borrowing from one card to another. It does not itself write off or reduce the principal. A lower promotional interest rate may reduce the cost if you qualify and repay within the relevant terms.

Check the transfer fee, promotion deadline, minimum payment, credit limit and later interest rate. A 0% rate does not mean there are no required monthly payments, and new spending may have different terms.

Can I Do It With Another Person’s Card?

It depends on the card provider’s current rules. Some transfers must come from a card in your own name, and restrictions can also apply within a banking group. Do not assume that a transfer from a partner or relative is permitted.

Ask the receiving provider explicitly before applying. If it accepts the transfer into your account, you become responsible to that provider for the balance and any charges, even if the other person has promised to reimburse you.

How Do I Do It?

Check eligibility and explain that the existing card belongs to another person. Follow the provider’s approved process with the other person’s consent and supply accurate details. An online form not asking for a name does not override the terms.

Keep paying the original card as required until the transfer is confirmed, and check both statements for any balance or interest left behind. Do not transfer more than you could afford to repay yourself.

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What are Some Things to Remember? 

I’ve already mentioned the balance transfer fees. They can rack up to a significant amount if the amount of money you’re transferring is large. 

You may have to discuss who will pay the balance transfer fees with the person whose debt you’re transferring. 

Other than that, the single most important thing you need to worry about is the fact that now that the outstanding balance has been transferred to your account, you are the one who’s liable for the debt.

This means that if a payment is missed or paid late, you are the one the credit card company will contact to inquire about it. You will be solely responsible for the debt since it will be in your name now.

It doesn’t matter if you’ve had an informal agreement with the person whose debt it originally was. According to guidelines set and regulated by the Financial Conduct Authority, you’re the one who’s responsible for taking care of the debt now and liable for any legal implications of the debt.

Since the debt is in your name now, it will also have an effect on your credit score. Any missed or late payments will affect your credit score drastically. Thus, this is something to consider before you take on someone else’s debt on your account. If payments are missed, you could end up with a CCJ against your name and even have enforcement agents, or bailiffs, on your case.

Hence, it’s important that before you transfer someone else’s outstanding balance onto your account, you make sure that: 

• You trust them completely to make the repayments to you so you can forward them to the credit card company. 
• You don’t have a problem paying off the debt from your own pocket on behalf of the other person in case they are unable to or if they refuse to. 

Although you are legally responsible for the debt now, this does not mean that you have to pay it yourself.

In most cases like these, the balance transfer reduces the debt for the original debtor. 

Before you transfer the balance to your account, you talk with the original debtor thoroughly about their plan for paying off the debt so that you’re both on the same page. 

Talk about how much they will pay towards their debt each month. 

You can also ask them to set up a direct debit so that they can make payments to the credit card provider themselves each month. 

It’s a good idea to get the agreement in writing and record the original debtor’s payments towards their debt. They could come in handy in case any disputes arise later. 

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Natasha

Very helpful and informative thank you

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Alternative Debt Solutions

Plenty of other options are available if you want to help someone with credit card debt but can’t or don’t want to take on the legal burden.

The debtor can look into formal debt solutions such as a debt relief order, an IVA or, in the most severe cases, bankruptcy. These all have their own advantages and disadvantages, so I advise reading through my guides and getting advice from independent debt advice services to make sure they are choosing the right one for their situation. These include:

• Stepchange
• National Debt Helpline
• Citizens Advice

References

CONC 13.1 Application

CONC 2.1 Application

CONC 5.2A Creditworthiness assessment