Barclaycard and Tesco battle to offer longest 0% balance transfer

The battle to top the 0% balance transfer credit card best buy table continues.

There has been more movement at the top of the 0% balance transfer credit card best buy table.

First, Tesco extended the interest-free period on its Clubcard for Balance Transfers card credit card from 25 months to 27 months. That put it at the top of the table due to its balance transfer fee of 3.15%. A short while later, Barclaycard responded by cutting the balance transfer fee on its Platinum 27-Month card from 3.5% to 2.9%. It also cut the balance transfer fee on its 26-Month Platinum Visa from 2.9% to 2.5%.

Let’s have a look at how this changes the overall 0% balance transfer best buy table.

The longest isn't necessarily the cheapest

While Barclaycard and Tesco both offer cards with no interest to pay for 27 months, their slightly higher balance transfer fees mean you could save a bit of money by opting for a card with a shorter interest-free period.

For example, the Halifax 25-Month card has a 25-month 0% period, but only charges a 2% fee. As you can see from the table, if you were transferring £2,000 and opted for this instead of the market leaders it would save you up to £23.

However, you shouldn't go for a shorter 0% period just to save a relatively small amount of money if you think that means you'll end up with money still to pay once the interest-free term ends.

It's also worth pointing out that these cards don't accept transfer from other credit cards from the same company. So if you have debts on a Barclaycard you'll need to move them onto a card from another company.

The importance of a good credit rating

These best buy credit cards are only open to people with a good credit rating.

If yours could use some improvement, there are a number of simple things you can do that help, such as ensuring you pay any credit cards, loans, mobile phone bills, etc. that you have on time each month. You should also make sure you're on the electoral roll. There are more tips in How to build an excellent credit history.

And remember that you can check out your credit record with a free 30-day trial of Experian's CreditExpert, via Lovemoney.

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