Barclaycard has unveiled yet another 0% balance transfer credit card. But is it any good?
Barclaycard has expanded its extensive credit card range with a brand new 21-month 0% balance transfer card.
If you’re paying an expensive interest rate on your current credit card, a balance transfer card is a good chance to have a break from the interest payments. In this case you get a whopping 21 months without having to worry about interest.
When you transfer over a balance to this card you’ll need to pay the fee of 1.45%. This is relatively low compared to most 0% cards. On a debt of £2,000 for example, you’d be paying £29, while for a £3,000 transfer the fee rises to £43.50.
As most cards offering balance transfer windows of a similar length charge fees around 3%, this is a very competitive fee rate.
As well as the new card launch, Barclaycard has also made its 23-month balance transfer card more attractive with a lower fee. The new rate on the card is 2.7% on any transfers, down from 2.8%.
How does it compare?
The balance transfer card market is extremely competitive. Our comparison tables give a full view of the market and Barclaycard frequently has several cards in the top end of the tables.
When looking at fees alone, the new card comes in quite high up.
|
Card |
Balance transfer fee |
0% balance transfer period |
Fee to pay on £2,000 transfer |
Fee to pay on £4,000 transfer |
|
0.90% |
12 months |
£18.00 |
£36.00 |
|
|
1.00% |
13 months
|
£20.00 |
£40.00
|
|
|
1.00% |
13 months |
£20.00 |
£40.00 |
|
|
1.45% |
21 months |
£29.00 |
£58 |
|
| Barclaycard Platinum Low Fee Balance Transfer Credit Card |
1.50% |
16 months |
£30.00 |
£60.00 |
However, if you’re looking for a longer 0% balance transfer window there are better options around, although the fees to pay are much higher.
|
Card |
Balance transfer fee |
0% balance transfer period |
Fee to pay on £2,000 transfer |
Fee to pay on £4,000 transfer |
|
3.2% |
24 months |
£64 |
£128 |
|
|
2.7% |
23 months |
£54 |
£108 |
|
|
2.85% |
23 months |
£57 |
£114 |
|
|
3% |
23 months |
£60 |
£120 |
|
|
3.5% |
23 months |
£70 |
£140 |
A word of warning
Balance transfer cards are a great way to lower your outgoings, especially if you’re paying out a lot in interest. But during the balance transfer term you need to make sure you pay off the debt, as when this ends the interest rate will kick in. These cards carry higher interest rates than most other credit cards and therefore as soon as you start paying interest you’re negating the savings made through the 0% period.
At this stage, it is possible to transfer the balance again to a new card but there’s no guarantee you’ll be accepted onto a new card.
More on credit cards:
Lovemoney Awards: John Lewis is your favourite credit card
Capital One Balance Visa: new 0% credit card for bad credit borrowers
The best credit cards for 2013