Pay 0% on new credit card for 18 months
One new card offers an incredible 18 months of 0% interest.
If you have debt built up on your credit card, then a balance transfer card can be a very useful tool for eradicating it. By moving over that debt to a balance transfer card, you’ll be able to enjoy many months of 0% interest on that debt, allowing you to pay it off in palatable stages, rather than racking up interest on your existing purchases card.
And for those looking to snap up a new balance transfer card, the time to act may be now – one card now offers the longest period of 0% interest ever!
Well done Barclaycard
Barclaycard’s Platinum credit card was already a best buy, offering 17 months of 0% on balance transfers. However, yesterday the firm moved ahead of the pack by improving its offer to a frankly incredible 18 months.
That’s a year and a half, completely free of interest, in which to pay off your debt. Even those borrowers with credit card debt of a sufficient size that it is starting to give them sleepless nights must fancy their chances of at the very least making a sizeable dent into that debt. Aftel all, they will have 18 months with which to make payments that go completely towards the debt, rather than also covering interest.
Related how-to guide
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See the guideOf course, if you do transfer over a balance, you will have to pay a fee – 2.9% of the sum being transferred with the Barclaycard. And while that is a little higher than some of its main competitors, it’s shouldn't make a significant difference unless you are transferring a vast sum. What’s more, if you transfer over £3,000 or more, £20 will be knocked off the fee!
Increasing competition
It’s not just Barclaycard that have revamped their balance transfer offering this week though – Nationwide has also improved the 0% period on offer with its credit card, upping it to 17 months.
While this is obviously not as good an offer as the Barclaycard deal (with a slightly higher transfer fee of 2.95% as well), it’s good news for borrowers all the same, particularly if you already have debt on a Barclaycard as you generally cannot move debt between two cards from the same provider.
Here are the current best balance transfer cards in the market.
|
Card |
0% balance transfer period |
Transfer fee |
|
18 months |
2.9% |
|
|
17 months |
2.95% |
|
|
16 months |
2.88% |
|
|
16 months |
2.89% |
|
|
16 months |
2.9% |
|
|
16 months |
3% |
|
|
16 months |
3% |
|
|
16 months |
3% |
|
|
15 months |
3% |
|
|
15 months |
2.9% |
*Only available to existing current account holders
Compare credit cards at lovemoney.com
Getting the transfer right
Rob Powell hits the streets to bust these credit card myths
Of course, there is more to the perfect balance transfer than simply snapping up a card. For a great rundown of what you need to remember, be sure to have a read of Five top tips for a successful balance transfer.
New 0% on purchases card too!
What if you don't have existing debt on your card but simply want to spend interest-free?
The good news is, there is a new market leader in the 0% of purchase market too. Marks & Spencer has announced that it is to increase the interest-free period on its card to a whopping 15 months, a whole two months clear of its nearest competitor. What’s more, you’ll earn M&S points with your spending, no matter where you do it, allowing you to save money on future purchases at Marks & Spencer.
And if you buy travel money from Marks & Spencer using the card, there will be no cash advance fee and 55-days interest free credit.
If you have a big expenditure coming up, perhaps a wedding or a new baby, and you know that you are going to need to spread the payments, then you might like to consider one of the cards below.
|
Card |
0% purchases period |
|
15 months |
|
|
13 months |
|
|
13 months |
|
|
13 months |
|
|
12 months |
|
|
12 months |
|
|
12 months |
|
|
10 months |
|
|
10 months |
*Only available to existing current account holders
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Comments
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@cowboya You would still need to pay the minimum each month.
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That's for 0% interest free on balance transfer, isn't it? I was meant to ask about the 0% 15-month free on purchases (M&S Credit Card). I'm very disciplined on my spending... just thought of taking advantage of the 0% interest free to chalk up interest on my money in savings account (rather than using them to pay for my monthly spending).
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Thanks ollibolliboo for the info. I'll follow it up. As for cowboya; No, it means you'd already have a balance on another card and the amount you transfer to the new card (just once!) will be interest free for 15months but you pay AT LEAST the minimum repayment every month. All designed to make you think you can spend more and get you in such a pile of s*** in 15 months time you'll take the next 20 years getting out of it. Sounds like you'd better keep well away m8. Go and learn about "compound interest" before you touch credit cards. You've been warned.
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28 February 2011