NatWest and RBS took top spot in the 0% balance transfer credit card tables with the launch of their Platinum Visa. But Barclaycard has wasted little time biting back with a killer deal of its own.
Barclaycard has once again reclaimed top spot of the balance transfer credit card best buy tables with the launch of a new card offering an incredible 27 months of 0% interest.
On Sunday, NatWest and Royal Bank of Scotland became market leaders with their Platinum MasterCard, offering 26 months interest free and a transfer fee of just 2.65%. That was significantly better than Barclaycard’s offer of 26 months at 0%, but with a 3.5% fee.
However, as we have seen time and again in recent months, as soon as a rival undercuts it Barclaycard will respond with a killer new offer of its own. And it's done so again, with the launch of a 27-month 0% card – the longest interest-free period EVER on a credit card.
Here’s how the Barclaycard compares
|
Credit card |
0% balance transfer period |
Balance transfer fee |
Cost of transferring £2,500 |
|
27 months |
3.5% |
£87.50 |
|
|
26 months |
2.65% |
£66.25 |
|
|
26 months |
2.65% |
£66.25 |
|
|
25 months |
2.4% |
£60 |
|
|
25 months |
2.5% |
£62.50 |
|
|
25 months |
2.9% |
£72.50 |
|
|
MBNA Platinum |
24 months |
2.85% |
£71.25 |
|
24 months |
2.89% |
£72.25 |
However, as you can see, for the sake of an extra interest-free month, you will be paying over £20 more in transfer fees if you move over £2,500 to the Barclaycard 27-month compared to NatWest or RBS's 26-month options. That difference becomes even more significant as you transfer larger balances.
If you don’t need quite so long the 25-month Platinum from Barclaycard remains an enticing option, with a fee of just 2.4%.
The appeal of balance transfer cards
I’ve used balance transfer cards myself in the past so I speak from experience when I say that they can really make a difference when paying off sizeable credit card debt.
For the sake of a transfer fee you can buy yourself more than two years free of interest charges. That means you can pay that debt off in manageable chunks. It does take discipline to use them right – they aren’t an excuse to go out and max your other credit cards – but used properly they can be a fantastic piece of plastic.
Can they get longer?
Barclaycard has once again made clear its determination to top the best buy tables no matter what. This time NatWest and RBS got to top the tables for almost a day; previous challengers have had to make do with a matter of hours.
It reinforces the fact that if you’re after the absolute best deal, chances are it will come from Barclaycard. But that doesn’t mean the other cards aren’t worth a look. That’s particularly true if your existing debt is on a Barclaycard credit card, as you won’t be able to move it onto a second Barclaycard deal!
> Answer one of our Lovemoney surveys and you could win £50. Five lucky readers will all get £50 prizes.