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Take advantage of the credit car war
The battle to top the best buy tables for 0% balance transfer credit cards has heated up again. First Tesco increased the interest-free period on its Clubcard credit card to 25 months. That move made the card the joint market leader with the 25-month Barclaycard. A few hours later, Barclaycard retaliated by launching a 26-month 0% card.
So if you have some debt on other credit cards and you need a reasonable length of time to pay it off, why not take advantage of this competition?
Let’s look at the all the top 0% balance transfer credit cards that are available now.
Best buy 0% balance transfer credit cards
Card | 0% period | Balance transfer fee | Fee paid on £2,000 transfer | Representative APR after 0% period ends | Notes |
26 months | 3.5% | £70 | 18.9% | ||
25 months | 2.8% | £56 | 18.9% | ||
25 months | 2.9% | £58 | 16.9% | ||
25 months | 3% | £60 | 18.9% | ||
24 months | 2.9% | £58 | 17.9% | ||
24 months | 2.9% | £58 | 17.9% | ||
23 months | 2.5% | £50 | 16.9% | ||
23 months | 2.89% | £57.80 | 16.9% | Can check whether you’ll get card prior to application | |
22 months | 2% | £50 | 16.9% | ||
21 months | 1.5% | £30 | 17.9% | Apply for card before 23rd March and you’ll only have to pay reduced 1.5% fee |
As you can see, the 26-month Barclaycard has the longest interest-free period but it also has the highest balance transfer fee (the cost you have to pay to transfer your debt) at 3.5%. So if you transferred a £2,000 debt to the card, you’d have to pay a £70 fee.
If you think you can pay off your debt over a shorter period, you can save on this fee by opting for another card.
For example, Barclaycard also has its 25-Month Platinum Visa card which only charges a 2.8% fee, or £56 on a £2,000 transfer. And Tesco charges a 2.9% fee on its 25-month Clubcard Credit Card for Balance Transfers, which works out at £58 on a £2,000 debt. That's a reasonanble saving on the Barclaycard 26-Month card.
If you're a regular Tesco shopper, it's also worth bearing in mind that its card also enables you to earn Clubcard points.
For every £4 you spend at Tesco with the card, you’ll earn five Clubcard points. And you’ll also earn one point for every £4 spent at any other shop. Bear in mind that you need to pay able to pay off any spending in full each month, as it isn't part of your balance transfer, or you'll be charged interest.
[Related link: Compare 0% balance transfer credit cards]
Credit cards with lower balance transfer fees
If you think you can pay off your debt in less than 25 months, then there are a few cards with even lower balance transfer fees. The Lloyds TSB Platinum Mastercard offers a 21-month interest-free period with just a 1.5% fee. That means you’d only have to pay £30 fee if you transferred a £2,000 debt. But you need to get in quick if you want to take advantage, as it's only on offer to applications made by 23rd March.
Another limited offer is available from Nationwide. Its Visa card offers an interest-free period of 20 months, with a half-price balance transfer fee of 1.55% if you apply by 2nd April and transfer your debt within three months of having the card.
You'll also need to get in quick to take advantage of the Bank of Scotland Platinum card's half-price rate of 1.5%. It has an interest-free period of 18 months. Applications for this deal also close on 23rd March.
The Barclaycard Low Balance Transfer card also a fee of 1.5%, but an interest-free period of 16 months. However, you can't transfer debt from other Barclaycards.
Meanwhile, the Fluid 15-Month card, as the name suggests, offers 15 months at 0% and a balance transfer fee of 1.5%.
And the final card to consider is the Natwest Platinum Low Balance Transfer Fee card. You only get a 13-month interest-free period with this card but the fee is extremely low at 1%, or £20 on a £2,000 debt. Make sure you're sure you can pay off your debt within 13 months before you apply though.
Don't forget your credit rating
It’s important to remember that 0% balance transfer cards are normally only offered to applicants with a good credit rating. So if you know for sure that your credit rating isn't great, there’s no real point in applying.
And if you do get a card, remember you must make your minimum repayment on time every month. If you miss a payment, there’s a good chance your credit card provider will cancel your 0% deal, and you’ll be hit by heavy interest charges.
[Related link: Compare 0% balance transfer credit cards]
