Halifax 25-month interest-free balance transfer credit card
Halifax has become the second provider to launch a balance transfer credit card with an interest-free period of more than two years.
The lender’s card previously offered 24 months at 0%, but this has now been increased to 25 months. Transfers are subject to a 3% fee, while there is also a three-month 0% period on purchases. Since Halifax made the announcement, Barclaycard has fought back by cutting the fee on its 25-month card to 2.9%.
The table below covers the cards offering the longest 0% terms on balance transfers.
Card | 0% balance transfer period | Transfer fee | Fee paid on a £2,000 transfer |
25 months | 3% | £60 | |
25 months | 2.9% | £58 | |
24 months | 2.8% | £56 | |
24 months | 2.9% | £58 | |
24 months | 2.9% | £58 | |
23 months | 2.9% | £58 | |
22 months | 2.5% | £50 | |
21 months | 1.5% | £30 | |
20 months | 1.55% | £31 |
So in truth there’s very little difference between the top five balance transfer credit cards, all of which offer either 24 or 25 months interest-free and a fee of between £56 and £64. Great news if you have a decent stack of debt in need of clearing as you have plenty of choice!
Paying a smaller fee
Also worth noting are the two cards at the bottom of the table, which charge far smaller fees than the rest of the top ten.
Before you apply for a balance transfer card, work out how quickly you think you’ll be able to clear the balance. If you can do it in 21 months or fewer, then it’s probably a good idea to go for a card with a smaller balance transfer fee.
The Lloyds TSB Platinum is currently offering a half-price balance transfer fee, which is why it’s so low. That offer was due to expire next week but has been extended for a month, so there’s still a little time to take advantage.
Below are some more excellent options if you don’t need a lengthy 0% period.
Card | 0% balance transfer period | Transfer fee | Fee paid on a £2,000 transfer |
13 months | 1% | £20 | |
13 months | 1% | £20 | |
MBNA Platinum Credit Card | 14 months | 1.25% | £25 |
15 months | 1.5% | £30 | |
16 months | 1.5% | £30 | |
18 months | 1.5% | £30 |