Two more providers have upped their 0% balance transfer deals. But in an over-saturated market how do they stack up?
The balance transfer market is heating up again as NatWest and RBS extend their platinum credit card deals by one month to 27 months.
Credit card debt can be a struggle to pay off, but if you’re having to make expensive interest payments then it’s twice as hard to get back into the black.
A balance transfer card can help and the new deals from NatWest and RBS offer an attractive 27 months of 0% interest for new customers.
The fee of 3.10% will be applied on any amount transferred over. Therefore if the debt is £2,000 the fee would be £62.
The move puts this card in second place in the balance transfer market, with Barclaycard in the number on spot with its 27 month card with a lower fee of 2.99%.
Tesco, Virgin and Halifax also have similar deals.
The top five 0% cards
|
Card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|
27 months |
2.99% |
£59.80 |
18.9% |
|
|
27 months |
3.10% |
£62 |
18.9% |
|
|
27 months |
3.10% |
£62 |
18.9% |
|
|
27 months |
3.15% |
£63 |
16.9% |
|
|
26 months |
2.5% |
£50 |
18.9% |
These cards are market-leading because they offer the longest 0% periods around, but they might not be suitable for you. If you would prefer one with a smaller fee, there are options around.
Tesco, for example, went against the grain and launched a card with no fees in June which also has a 12-month 0% period. Unfortunately it now has a fee of 0.9%, which is still market leading, but not as nice as being fee-free!
[SPOTLIGHT]But if 12 months isn’t long enough there are cards with longer 0% interest rates, such as the Halifax All In One Online MasterCard and the Lloyds TSB Online Platinum card which both have 15 months of 0% interest and a 1% fee.
You can find out more options in our article - The best low-fee balance transfer credit cards.
Balance transfer cards
Using a balance transfer card is an excellent way to clear your debts as during the 0% period you’re given a break from interest payments.
However, they only work if used correctly and you need to make sure you don’t miss any payments. Making a late payment, or forgetting altogether, can seriously affect your credit rating and the 0% period could be cut.
Setting up a direct debit to pay off a certain amount each month is an easy way to manage the card during the 0% period.
It’s also important not to get caught out by the interest rate once it reverts to the standard rate. At this point it may be possible to switch to another 0% card but there is no guarantee you’ll be accepted.