The invention discloses a transient magnetic pulse induction type current transfer circuit and the use method thereof. The transfer circuit comprises a main current circuit and a transfer current circuit. The transfer current circuit comprises a mutual inductor. The use of the transfer current circuit can quickly complete the transfer of current and achieve current restriction or current cut-off. At the same time, the capacitor in the second circuit is isolated from the direct current system, which obviously reduces the voltage level and the size of a charging unit, and improves the transfer reliability. The application method of the invention can realize various engineering application functions, such as a direct current circuit breaker, an alternating current quick circuit breaker, and an alternating current and direct current limiter.