Yahoo Finance 
Supermarkets spark fresh credit card price war
The banking arms of supermarket giants Tesco and Sainsbury's have increased the 0% periods on their best balance transfer credit cards, setting off another price war with Barclaycard. And that's good news if you've got some credit card debt to pay off.
Let’s have a look at these changes in detail and how the best buy tables look now.
[The most complained-about banks]
Sainsbury’s and Tesco go to 33 months...
Tesco’s improved Clubcard for Balance Transfers card has had its balance transfer period increased by one month from 32 months. The card still has a balance transfer fee (a percentage of your debt you’re transferring) of 2.9%. You can also earn Clubcard points on your spending, although you'd probably be better using the card to pay off your debts then spend on.
Meanwhile, Sainsbury’s Bank has increased the 0% period on its Nectar Balance Transfer card from 31 months to 33 months. However, the card now has a slightly higher balance transfer fee of 3% (up from a discounted 2.89%). It also offers six months with no interest to pay on purchases and Nectar points on spending.
...but Barclaycard goes even further
Following the two supermarket banks' price changes, Barclaycard has put clear water between its top card and those two again by upping its longest 0% period from 33 months to 34 months. It also increased its second-longest 0% period from 32 months to 33 months.
The Platinum 34-Month card has a balance transfer fee of 2.99%, although this will initially be 3.5% with the difference then refunded. The Platinum 33-month card has a fee of 2.79%, so is the best of the rest. Again, a fee of 3.5% will be applied initially and then reduced by a refund.
Best buy table
Here's what this means for the 0% balance transfer card best buy table now.
Credit card | 0% period on balance transfers | Balance transfer fee | Cost of transferring £2,000 balance | Representative APR |
34 months | 2.99% | £59.80 | 18.9% | |
33 months | 2.79% | £55.80 | 18.9% | |
33 months | 2.9% | £58 | 18.9% | |
33 months | 3% | £60 | 18.9% | |
32 months | 2.65% | £53 | 18.9% | |
32 months | 2.69% | £53.80 | 18.9% | |
32 months | 2.8% | £56 | 18.9% | |
Bank of Scotland Platinum 32-Month Balance Transfer MasterCard | 32 months | 2.8% | £56 | 18.9% |
0% cards with low balance transfer fees
However, if you’re willing to go for a card with a shorter 0% period, you can pay a much lower fee or even no fee at all, as the table below shows.
Credit card | 0% period | Balance transfer fee | Fee paid on £2,000 transfer | Representative APR after 0% period ends |
10 months | None | £0 | 18.9% | |
12 months | 0.5% | £10 | 18.9% | |
12 months | 0.5% | £10 | 18.9% | |
15 months | 0.55% | £11 | 15.9% | |
15 months | 0.65% | £13 | 17.9% | |
17 months | 0.9% | £18 | 18.9% | |
Halifax 28-Month Balance Transfer MasterCard | 28 months | 1.5% | £30 | 18.9% |
Bank of Scotland Platinum 28-Month Low Balance Transfer Fee MasterCard | 28 months | 1.5% | £30 | 18.9% |
Lloyds Bank Platinum 28-Month Low Balance Transfer Fee MasterCard | 28 months | 1.5% | £30 | 18.9% |
*Nationwide current account customers only
Just be mindful if you're thinking of a shorter 0% period that you will be charged interest if you haven't paid off your debt in full by the end of the interest-free period. And there's no guarantee you'll be able to find another 0% card.
Is your credit rating good enough?
Sadly, some people won’t be able to get any of the cards we’ve highlighted in this article. That’s because the credit card companies are only willing to give these cards to people with good credit ratings.
