Serena Cowdy explains why she's excited by the latest credit card on the market.
This article was originally sent to Fools as part of our 'Summer Lolly' email series.
I rarely come across a financial product that I get really excited about - but today I have.
I'm going to tell you about my new favourite credit card, and why I think it beats the competition hands down. With this little beauty, you'll be able to get through both this summer - and next summer - totally interest-free.
An old favourite
In My Favourite Credit Card, my editor Ed Bowsher recently explained why he'd applied for the Halifax All In One MasterCard. Both its 0% balance transfer deal and its 0% new purchases deal last for ten months, (with a 3% transfer fee).
I thought this was a pretty tasty deal, and I was considering applying for one myself.
The new kid on the block
Until today that is - when I came across an even better deal: This week, Capital One has really stepped up to the plate and re-vamped its Capital One Platinum MasterCard.
So now, both its 0% balance transfer deal and its 0% new purchases deal last until September 1st 2009 (also with a 3% transfer fee).
That's a whopping 0% period of almost 15 months each - nearly five months longer than the Halifax offer!
Here's why I think this Capital One card really does knock spots off the competition:
The `balance transfer' element of the deal alone is one of the best around, and is (give or take a couple of days) as long as any on the market.
The `new purchases' element of the deal is also a corker - no other credit cards offer a longer period.
So to get them both together is really something. And because the 0% balance transfer and 0% purchases deals last the same amount of time, you don't fall into the trap of being made to pay off your most expensive debt last (negative payment hierarchy).
Finally, the card's typical APR is 12.9% - actually lower than the typical APR of most other credit cards that offer good 0% deals.
If the worst happens, and you don't manage to pay your debt off before September 1st 2009, this is the interest rate you're likely to end up on - so it's definitely worth bearing in mind.
Of course, there is a downside: You'll have to pay the 3% balance transfer fee - and as Capital One makes clear, you'll need a darned good credit rating to be accepted for this card.
But I like Capital One's transparency in this respect, and how specific its criteria are.
Just before you apply for the card, it's clearly explained what `excellent credit record' actually means - so you're less likely to apply, be rejected, and end up with a weakened credit record as a result.
What suits you
Just remember that all 0% periods must come to an end - so don't go spending mad!
And as always, this card won't suit everyone. If you don't think you can clear your credit card debt in 15 months, you might be better off going for a lifetime balance transfer card instead.
With one of these, you pay a really low, fixed rate of interest on the transferred balance until it's completely cleared - however long that takes.
The fight is on
It seems that competition in the credit card market really is hotting up, which is good news for Foolish card tarts everywhere.
Deals have certainly improved a lot since this time last year. At that point, the best new purchases deal ran for 12 months, and the best balance transfer deal lasted for 13 months.
And I think Capital One has set the bar that little bit higher. So let's see what the competition can come up with now...
Visit The Fool's Credit Card Centre to help find the right deal for you.