The ultra-low balance transfer fee on the Post Office Platinum card is increasing on 31st July.
You need to act now to get your hands on the best low-fee 0% balance transfer credit card.
The Post Office Platinum 18-Month Balance Transfer card offers 18 months of 0% interest with just a 0.7% transfer fee. But that tiny fee is only in place until the end of the month – after that it will jump up to a whopping 2.98%.
When the card first launched I said it was my favourite low-fee 0% card because it has such a great combination of a tiny fee with a pretty lengthy 0% period. Here’s how it compares to other cards charging a transfer fee of 1% or less.
|
Credit card |
Balance transfer fee |
0% period |
Representative APR |
|
0% |
Six months |
19.9% |
|
|
0.5% |
12 months |
18.9% |
|
|
0.5% |
12 months |
18.9% |
|
|
0.55% |
15 months |
15.9% |
|
|
0.65% |
15 months |
15.9% |
|
|
0.65% |
12 months |
18.9% |
|
|
0.7% |
18 months |
17.8% |
|
|
0.7% |
15 months |
17.9% |
|
|
0.7% |
15 months |
17.9% |
|
|
0.8% |
15 months |
17.9% |
|
|
0.8% |
15 months |
17.9% |
|
|
0.9% |
17 months |
18.9% |
*Current account holders only
As you can see, it is possible to get a 0% card with no transfer fee at all, though the 0% period is a paltry six months. That’s fine if you have a small debt to clear, but for more significant sums it may not be enough.
Similarly you can get 15 months with a 0.55% transfer fee (though you have to have a Nationwide current account too), but for just 0.15% more you can get an extra three months to clear your balance.
Let’s take an example. You have a £2,000 credit card balance that you want to clear. With the Barclaycard Platinum it won’t cost you a penny to transfer the balance, but you will need to pay £333.33 a month to get that balance cleared before the end of the six-month 0% deal, which is a pretty significant amount.
With the Nationwide Select, assuming you have a Nationwide current account, you would pay a transfer fee of £11. In order to clear the total balance of £2,011 before the 0% period finishes, you’d need to shell out £134.07 a month.
Now with the Post Office Platinum you’ll pay a bigger fee, this time £14. However, thanks to the longer 0% period, you’ll only need to shell out £111.89 a month to clear the balance without being charged any interest.
When 18 months isn’t enough
These low-fee cards are great when the debt you’re paying off isn’t too significant, but if you have a bigger balance to deal with then you probably need the longest 0% period you can get your hands on.
Barclaycard leads the way here with a 33-month 0% Platinum Credit Card, but there are now plenty of cards offering more than 30 months. For a comprehensive rundown, check out The best 0% balance transfer credit cards.
More on borrowing:
THE BEST MONEY TRANSFER CREDIT CARDS