Fresh 0% credit card price war breaks out

Barclaycard, Sainsbury's and Tesco improve their top 0% balance transfer credit card offerings.

Barclaycard, Tesco and Sainsbury’s have all increased the 0% periods on their top balance transfer credit cards. This marks the resumption of the 0% card price war that has been going on for quite a while now. And it'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.

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
Barclaycard 34-Month Platinum Visa	34 months	2.99%	£59.80	18.9%
Barclaycard 33-Month Platinum Visa	33 months	2.79%	£55.80	18.9%
Tesco Clubcard for Balance Transfers MasterCard	33 months	2.9%	£58	18.9%
Sainsbury's Bank Balance Transfer MasterCard	33 months	3%	£60	18.9%
Halifax 32-Month Balance Transfer MasterCard	32 months	2.65%	£53	18.9%
MBNA 32-Month Platinum Credit Card	32 months	2.69%	£53.80	18.9%
Lloyds Bank 32-Month Balance Transfer MasterCard	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
Tesco Clubcard with No Balance Transfer Fee	10 months	None	£0	18.9%
Lloyds Bank Platinum 10-Month Balance Transfer MasterCard	10 months	0.4%	£8	18.9%
Bank of Scotland Platinum 10-Month Balance Transfer Credit Card	10 months	0.4%	£8	18.9%
Halifax All in One Credit Card	10 months	0.4%	£8	18.9%
Sainsbury's Bank Nectar Low Balance Transfer Fee MasterCard	12 months	0.5%	£10	18.9%
Fluid Low Fee Visa	12 months	0.5%	£10	18.9%
Nationwide Select Card*	15 months	0.55%	£11	15.9%
Nationwide Credit Card	15 months	0.65%	£13	17.9%
Santander 19-Month Low Balance Transfer Fee MasterCard	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.

If you want to improve your credit rating, follow the tips in How to build an excellent credit history.

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