Credit card changes from Barclaycard and Tesco mean even better options for those looking to take advantage of an interest-free balance transfer.
Borrowers looking to avoid paying interest on their credit card debts have been handed another boost, with Barclaycard and Tesco both improving their top 0% balance transfer credit cards.
First to move was Tesco, which ramped up its 0% period to 28 months on its Clubcard Credit Card for Balance Transfers, which at that point was the longest available. It also cut its balance transfer fee from 3.15% to 2.9%. So for a £2,000 transfer made this week, you’ll pay a fee of £58 and won’t have to worry about any interest on your balance until March 2016.
However, Barclaycard has not reacted kindly to being displaced from top spot over the last few years, and it duly responded with a market-leading change of its own to its 29-Month Platinum Visa. It moved its 0% period to an incredible 29 months, and slashed its own transfer fee from 2.99% to 2.9%. So for a £2,000 transfer, you’ll again pay a fee of £58, but with Barclaycard you won’t pay any interest until April 2016.
Let’s take a look at how the best buy table now shapes up:
|
Credit card |
0% period |
Balance transfer fee |
|
29 months |
2.9% |
|
|
28 months |
2.9% |
|
|
27 months |
2.49% |
|
|
27 months |
2.5% |
|
|
27 months |
2.75% |
|
|
27 months |
2.64% |
|
|
27 months |
2.64% |
[SPOTLIGHT]So Barclaycard boasts two of the top seven cards, but you have plenty of choice if you need more than two years in order to pay off your balance. What’s more, there’s not a lot in it in terms of the fee you’ll pay either, ranging from £49.80 to £58.
Pay it off quicker!
Of course, if you have a smaller credit card debt you don’t necessarily need 29 months in order to clear your balance. So you can save money by going with a card that charges a lower balance transfer fee, in exchange for offering a smaller 0% period.
Below are the best low-fee options:
|
Credit card |
0% period |
Balance transfer fee |
|
12 months |
0.75% |
|
|
15 months |
0.8% |
|
|
Lloyds Bank 15-Month Online Platinum Balance Transfer MasterCard |
15 months |
0.8% |
|
TSB 15-Month Online Platinum Balance Transfer MasterCard |
15 months |
0.8% |
|
15 months |
0.9% |
|
|
Royal Bank of Scotland Platinum Balance Transfer and Purchase Credit Card |
15 months |
0.9% |
|
Tesco Bank Clubcard Credit Card with Low Balance Transfer Fee |
12 months |
0.9% |
That’s seven cards to choose from that will all charge less than 1% of the balance you’re transferring, and offering up to 15 months before you pay any interest. On a £2,000 balance, that’s a fee of no more than £18!
And if you want to combine a lower-than-average fee with a lengthy 0% period, Bank of Scotland, Lloyds Bank and TSB all offer Platinum cards that carry a fee of 1.5% yet allow you to sidestep interest for two years!
Compare 0% balance transfer credit cards