The two year 0% credit card!
Barclaycard has increased the 0% period on its balance transfer card to 24 months, as well as slashing the fees.
A lot will have changed by July 2013. The London Olympics will have come and gone. Croatia will be part of the European Union. And Britain will be fully on the road to total economic recovery. Or suffering from the crippling impact of a double dip recession.
You can delete depending on your views for that last one.
But one fact that won’t have changed by July 2013 is that your credit card debt will still be sat at 0% interest. If you take out the Barclaycard Platinum that is…
Trumped
Yes, Barclaycard has once again trumped its competitors by extending the interest-free period on its (already market-leading) balance transfer card by four months to a huge two years at 0%.
This is great news if you have a stack of debt accruing interest on a purchase card. Or indeed, have been indulging in a spot of rate- tarting and are searching for another 0% card to shift your burden onto.
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The Barclaycard will take any credit card debt – whether from a purchase account or balance transfer account – and hold it, interest free, for two years. This gives you the chance to spread your repayments and clear the debt over a longer period.
However if you do not clear your whole balance within the two years, you may want to switch to another 0% account, as if you don’t, you’ll be hit with an interest rate of 17.9% (typical) that could quickly spiral and re-inflate your credit card balance.
Fees slashed
In addition to extending the 0% period on the Platinum account, Barclaycard has also slashed the fees for balance transfers made onto the new 24 month deal.
The percentage fee charged on incoming transfers still – on paper – stands at 3.2%. However, if you make a balance transfer onto the card within 60 days of the account opening, a refund will be issued that will bring the fee down to 2.8%.
For a market-leading, two-year balance transfer card, this fee is very low.
Taking an example, if you’ve managed to rack up £5,000 on a credit card, you’d pay a £140 fee when transferring this debt to the Barclaycard. And to clear the entire balance within the two-year interest-free period, you would only need to repay £209 each month.
However this account is only available to new customers who apply for the card online. Meaning that if your credit card burden is currently sat on a Barclaycard, you’ll need to look elsewhere.
Fortunately the entire balance transfer card market is in a fairly healthy state at the moment…
The best of the rest
Lenders have been engaged in balance transfer combat for a while now, constantly attempting to outflank each other on 0% periods and fees.
As a result, we’ve been left with a card range chocked full of lengthy zero interest periods and low fee levels.
Here’s a table detailing all of the top cards for balance transfers that are currently available…
|
Card |
Balance transfer |
Balance transfer fee |
|
24 months at 0% |
2.8% (3.2% + 0.4% refund) |
|
|
20 months at 0% |
3% fee |
|
|
19 months at 0% |
2.49% |
|
|
19 months at 0% |
2.5% |
|
|
19 months at 0% |
2.4% (2.9% + 0.5% refund) |
|
|
18 months at 0% |
2.8% |
|
|
18 months at 0% |
2.8% |
|
|
18 months at 0% |
3% |
|
|
0% until Dec 2012 |
2.9% |
As you can see, even if your current debt is on a Barclaycard, there are still plenty of competitive 0% options available, including a 20 month deal from Halifax. The Virgin Money and MBNA cards are also worth a look in as they both offer long 19 month periods at zero interest as well as low 2.5% fee levels.
However, just remember that most credit cards will not accept transfers from accounts provided by the same lender. Simple enough, yes?
Well, unfortunately not.
Your credit card's secret provider
Occasionally, two or more cards that are branded completely differently may have the same provider. For example, Virgin Money and MBNA credit cards are both issued by Bank of America UK. This means that if you currently have a stack of debt sat on an MBNA card, you won’t be able to shift it over to Virgin Money card.
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For a full breakdown of which providers issue which cards head over to The secret truth about your credit card.
It’s also worth pointing out that to get hold of the best cards with the longest 0% periods, you will need a healthy credit rating. If you’re unsure as to the current state of your credit history you can get a free report with Experian – just remember to cancel before the 30 day trial period expires.
And for some more advice on shifting your debt to a 0% card – including why you should never spend on a balance transfer card – read Five top tips for a successful balance transfer.
More: Get a 24 month 0% credit card | New card which earns points with easyJet, M&S and Amazon | The best all-round credit cards
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