You won’t have to pay any interest on your debt for two and a half years with the new Barclaycard Platinum credit card.
The balance transfer credit card market is heating up once again with Barclaycard launching the Platinum 30-Month card.
That's great news for borrowers as this move means they could avoid paying any interest on their credit card debt for two and a half years!
This is Barclaycard's responde to Tesco increasing the 0% period on its Clubcard Credit Card for Balance Transfers to 28 months earlier this week.
And to further secure its position at the top of the best buy table, Barclaycard has also launched a new Platinum 28-Month card with a 2.49% fee, which displaces Tesco from being even the second best card around.
As this shows, the market is fiercely competitive but people with credit card debt to pay off can take full advantage of the companies' desire to offer the longest interest-free term.
Let’s take a look at the best balance transfer deals lasting more than 24 months.
|
Credit card |
0% period |
Balance transfer fee |
Cost of transferring £2,000 |
|
30 months |
2.90% |
£58 |
|
|
28 months |
2.49% |
£49.80 |
|
|
28 months |
2.90% |
£58 |
|
|
28 months |
2.99% |
£59.80 |
|
|
28 months |
2.99% |
£59.80 |
|
|
27 months |
2.49% |
£49.80 |
|
|
27 months |
2.50% |
£50 |
|
|
27 months |
2.75% |
£55 |
|
|
26 months |
2.40% |
£48 |
|
|
26 months |
2.99% |
£59.80 |
As you can see there are plenty of lenders willing to provide over two years of interest-free payments to those who want to clear their debts.
However, the balance transfer fees range from 2.40%-2.99% on these top deals, which are quite high right now.
You might want to go for a cheaper deal instead.
The cheapest balance transfer deals
If you don’t need as long to clear your credit card debt you can get a much cheaper balance transfer credit card.
Here are the best low fee balance transfer credit card deals charging less than 1%.
|
Credit card |
0% period |
Balance transfer fee |
Cost of transferring £2,000 |
|
12 months |
0.75% |
£15 |
|
|
15 months |
0.8% |
£16 |
|
|
Lloyds Bank 15-Month Online Platinum Balance Transfer MasterCard |
15 months |
0.8% |
£16 |
|
TSB 15-Month Online Platinum Balance Transfer MasterCard |
15 months |
0.8% |
£16 |
|
15 months |
0.9% |
£18 |
|
|
Royal Bank of Scotland Platinum Balance Transfer and Purchase Credit Card |
15 months |
0.9% |
£18 |
As you can see in exchange for a significantly lower fee you sacrifice the length of the 0% period.
You can pay just £15 to freeze the size of credit card debt for a year with the Fluid Low Fee Visa or pay £18 for 15 months with the NatWest and Royal Bank of Scotland cards.
[SPOTLIGHT]Alternatively, if you do need a bit longer, the Lloyds Bank Platinum 24-Month MasterCard, Bank of Scotland Platinum 24-Month MasterCard and TSB Platinum 24-Month cards all offer two years for a very reasonable 1.5% fee, which on a £2,000 transfer only amounts to £30.
Use the opportunity
A balance transfer credit card is a great tool for freezing the size of spiralling debt but it won’t stay interest-free forever.
When you take out one of these cards, your aim should be to clear the debt in the 0% period. If you don't then you'll have to start paying interest when the 0% period comes to an end.
At this point it may be possible to transfer the debt onto a new card, but there is no guarantee you’ll be accepted.
You must always make at least your minimum monthly repayment too, otherwise the 0% offer will almost certainly be withdrawn.
If you need more time than the leading cards can offer you could try a low APR balance transfer credit card, which doesn't have a time limit and usually comes without a fee.
Compare 0% balance transfer credit cards