Balance Transfer Battle Hots Up Again
18th June 2014
Barclaycard has launched a market leading 33 month 0% interest balance transfer card in response to Halifax's 32 month offer
Halifax struck first with its longest ever 0% interest balance transfer card, which will allow customers to transfer existing credit card debt to this card and pay no interest for 32 months. There is a 3% fee on balances transferred within the first 90 days, so if you transferred £2,000 to this card you would pay a fee of £60.
This card also offers 0% interest on purchases for six months and has an average representative APR of 18.9% variable. The card is only available online.
Barclaycard quickly came back with the longest ever interest free balance transfer card, offering a 33 month 0% period. This card comes with a transfer fee of 2.99% - a 3.5% fee is charged, but is reduced to 2.99% by a refund - on balances transferred within 90 days. So if you transferred a balance of £2,000 on this card you'd pay £70, reduced to £59.80.
This card also has a representative APR of 18.9% variable.
Barclaycard also offers a 32 month interest free balance transfer card charging a fee of 2.89% (after refund, 3.5% before) on balances transferred within 90 days. If you borrowed £2,000 on this card you would pay a fee of £57.80, after the refund. The 32 month 0% interest balance transfer card has an average representative APR of 18.9% variable.
Matt Sanders, from Gocompare.com Money, said: "The credit card market has been quiet for a few months, so it's not surprising that these big players have launched such attractive balance transfer offers at this time of the year.
“Many people depend on their credit cards to make ends meet over the summer period, when the children are off school and holidays are looming, so it's important that people play the credit card game wisely to manage their cash flow without getting into unnecessary debt."
Matt added: “As always with credit cards you really have to consider what is best for you and your circumstances. There are credit cards on the market that have lower balance transfer fees but shorter interest free periods, so you really have to think about what you need and how quickly you can clear your balance.
“If you have a structured plan to pay off your credit card debt over a short period, then a lower fee card might be the one for you, but if you have to spread your payments out over a longer period then the cards with longer 0% interest offers may suit your needs better.
“Shop around for the best card and best rate for you, but bear in mind that whatever card you choose it is still a debt that has to be paid off, so try and do that as soon as possible so to ensure you don't end up paying interest.”
Notes
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