Lloyds TSB offers new cheapest 0% balance transfer credit card
The Platinum 15-Month card now has a balance transfer fee of just 0.8%, but are there better cards out there?
Lloyds TSB has cut the balance transfer fee on its Platinum 15-Month credit card, making it the cheapest 0% balance transfer credit card out there.
The Platinum card offers an interest-free introductory period of 15 months on balance transfers. In return, you have to pay a balance transfer fee of 0.8% of the debt you’re transferring.
Let’s have a look at what it would cost to transfer different amounts to the Platinum card.
|
Amount transferred |
Balance transfer fee cost |
|
£1,000 |
£8 |
|
£2,000 |
£16 |
|
£2,500 |
£20 |
|
£3,000 |
£24 |
You’ll actually pay a 3% balance transfer fee initially, and then 2.2% will be refunded within 90 days of the balance transfer completing.
So if you transfer £1,500, you’ll initially pay a fee of £45 and then receive a refund of £33.
The representative APR on this card, which kicks in when the 15 months is over, is 17.9%. It also offers three months interest free on purchases.
How it compares
The Lloyds TSB card is now the cheapest but does it offer the best combination of interest-free period and balance transfer fee?
Here are the other top cards with low fees:
|
Credit card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|
Lloyds TSB 15-Month Online Platinum Balance Transfer MasterCard |
15 months |
0.8% |
£16 |
17.9% |
|
NatWest Platinum Balance Transfer and Purchase Credit Card |
15 months | 0.9% | £18 | 18.9% |
|
Royal Bank of Scotland Platinum Balance Transfer and Purchase Credit Card |
15 months |
0.9% |
£18 |
18.9% |
|
Tesco Bank Clubcard Credit Card with No Balance Transfer Fee |
12 months |
0.9% |
£18 |
16.9% |
|
15 months |
1% |
£20 |
17.9% |
|
|
14 months |
1% |
£20 |
16.9% |
|
|
13 months |
1% |
£20 |
17.9% |
|
|
24 months |
1.5% |
£30 |
17.9% |
|
|
24 months |
1.5% |
£30 |
17.9% |
|
|
16 months |
1.5% |
£30 |
18.9% |
It's actually another Lloyds TSB Platinum card that arguably offers the best combination.
The Platinum 24-Month (also offered by Bank of Scotland) offers two years at 0% for a balance transfer fee of just 1.5%. That’s far cheaper than its other longer-term competitors.
For example, the Barclaycard 28-Month Platinum card may offer 28 months with no interest to pay, but the fee is 3.5%. So it will cost £40 more to transfer a £2,000 debt to the Barclaycard, although you will have four months more in which to pay off your debts.
Fee or 0% period?
The crucial question is: how long do I need to pay off my debts? It’s important to be realistic; a cheap balance transfer fee now will be pointless if you then end up paying interest because you haven’t paid off all your debts.
Here are the cards with the longest 0% balance transfer periods:
|
Credit card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|
28 months |
3.5% |
£70 |
18.9% |
|
|
27 months |
2.69% |
£53.80 |
18.9% |
|
|
27 months |
2.7% |
£54 |
18.9% |
|
|
27 months |
2.99% |
£59.80 |
18.9% |
|
|
27 months |
2.99% |
£59.80 |
18.9% |
|
|
27 months |
3.15% |
£63 |
16.9% |
Will I be able to get it?
Pretty much all of the credit cards featured in this article require a good credit rating. If yours is stopping you getting credit, have a read of Ten simple steps to improve your credit record.
Important things to remember
If you successfully get hold of a 0% card, it's vital you make at least the minimum repayment each month, otherwise you'll be charged and your 0% offer may be withdrawn. You should plan to pay off your debt by the end of the interest-free period; while you might be able to switch to another 0% deal, there's no guarantee this will be possible.
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