The Nationwide credit cards have just got better, but how do they fare when looking at other deals on the market?
Nationwide has ramped up its deals in the balance transfer credit card market by increasing the 0% period on its Nationwide and Select credit cards to 26 months.
It has also cut the balance transfer fee on both to 2.4%. So if, for example, you were moving over £2,000 of debt the fee would be £48.
The Select credit card is only available to new or exisiting Nationwide current account holders, while the Nationwide Credit Card is designed for new customers and has no tie-ins.
But in an increasingly competitive market, how do these cards compare?
How the Nationwide cards compare
This combination of long interest-free balance transfer period and low balance transfer fee puts both cards towards the top of the balance transfer table. Only Barclaycard, Tesco, RBS and NatWest offer longer periods of 27 months.
Barclaycard, Virgin and Fluid all offer 26-month cards but they all charge a higher fee.
Our comparison charts show the rest of the market but here I’ve listed the six cards with the longest 0% period.
|
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 |
2.4% |
£48 |
15.9% |
|
|
26 months |
2.4% |
£48 |
17.9% |
The kind of balance transfer card you pick will be based on your individual circumstances and if you don’t need two years or more to pay off a debt, then a card with a shorter 0% period will generally be cheaper.
The Tesco Bank Clubcard with Low Balance Transfer Fee, for example, has a fee of 0.9% but the 0% period only lasts for a year. If you need slightly longer there are cards from Halifax and Lloyds offering 15-month interest-free periods for a 1% fee.
Other perks of the Nationwide cards
Both cards also offer a number of other benefits, particularly in terms of using them abroad. The Select card offers 0.5% cashback on all purchases made in sterling, plus unlimited commission-free purchases abroad. It also offers a 12-month interest-free period on purchases, so is a pretty strong all-rounder.
Meanwhile, the Nationwide Credit Card allows you to build you a commission-free allowance to use abroad every time you make a purchase in pounds sterling. So if you spend £100 on your supermarket shopping, you'll earn a commission-free allowance of £20. It's worth pointing out though that there are cards that charge no fees for use abroad, with no limits, such as the Post Office Platinum MasterCard.
How to get the Select card
If you're not already a Nationwide banking customer, you can get a Select credit card by switching your current account to the building society. You'll need to use Nationwide's Account Transfer Service to make the switch. Right now, Nationwide has one of the best free current accounts on the market if you want to earn some interest on your money. The FlexDirect pays 5% AER on balances of up to £2,500 for the first year you have the account, providing you pay in at least £1,000 a month. So you could benefit from two market-leading products.
See how the FlexDirect compares to other top current accounts
The best way to use a balance transfer card
If you’re struggling to pay off a credit card and there are high interest payments, switching to a 0% balance transfer card is a good option. It’ll give you a rest from paying off the interest so you can focus on the debt.
However, these cards come with a warning. To use them properly you need to stick to the rules and pay the minimum amount each month on time. Failure to do this could mean the 0% period is cut, you’re fined or you get a black mark on your credit score.
During the 0% period it’s also important to focus on paying off the debt because as soon as it ends you’ll start making interest payments.
Compare top balance transfer credit cards