Lloyds cuts balance transfer fee to 1% on Platinum credit card
Lloyds Platinum card is now the cheapest around if you're looking to transfer a balance.
Lloyds has cut the balance transfer fee on its Platinum Balance Transfer Card to 1% for debts moved over to the card.
It has a 15-month 0% period, with a representative APR of 17.9% which kicks in after the 0% period ends.
Previously it would cost you 3% of the debt you wants to move onto the card. As a result a transfer of £2,000 will now cost you £20 rather than £60 - a significant difference.
It also has the added flexibility of 0% interest for the first three months on any purchases made on the card.
This is a pretty good deal when looking at the balance transfer fee alone, and brings the card into second place when looking at the best buy table. It’s only beaten by the Halifax All in Once Online MasterCard which also has a 15-month 0% period and a 1% fee, but a longer 15-month 0% period for purchases as well.
Here I’ve picked out the top five when looking at balance transfer fees.
|
Card |
0% period |
Balance transfer fee |
Fee paid on £2,000 |
APR after the 0% period ends |
|
15 months |
1% |
£20 |
17.9% |
|
|
15 months |
1% |
£20 |
17.9% |
|
|
13 months |
1% |
£20 |
18.9% |
|
|
13 months |
1% |
£20 |
18.9% |
|
|
16 months |
1.5% |
£30 |
18.9% |
Although these deals are cheap, there are longer 0% periods on offer.
Credit card providers are at logger heads at the moment trying to remain at the top of the tables and the longest period available is now 27 months from Barclaycard. This one comes with a hefty fee of 3.5%, so it will cost you £70 to transfer a debt of £2,000.
If you’re happy to go for a slightly lower 0% period, the fee will often be lower, such as the 2.4% available with the 25-month card from Barclaycard.
You can find out more in our article - The best 0% balance transfer credit cards.
How to use balance transfer cards
The headlines have been stacked full of balance transfer card offers recently. But however long a card’s 0% period is, unless you use it correctly, the card won’t benefit you in the long run.
During the 0% period you’ll have a break from interest payments which gives you the chance to pay off the debt owed. At the end of the 0% period the interest payments will begin.
If you’ve not paid off the debt owed on the card by this point you’ll need to start paying the interest or switch the debt onto another 0% card. There’s no guarantee you’ll be accepted for another card so this should be a last resort.
During the 0% period you also need to be careful not to miss any payments as this could push up your interest rate or even cut the 0% period altogether.
More on credit cards:
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Barclaycard bites back with longest 0% balance transfer card EVER!
The lenders who won't damage your credit score
The best cashback credit cards
It's war! NatWest and RBS launch top 0% balance transfer credit card
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