Breathe easy with this new balance transfer card

This new 0% credit card offers 15 months interest-free on balance transfers, so you can finally demolish your debts. Plus, you can make sure you avoid getting rejected.

When it comes to 0% credit card balance transfers, does Barclaycard have the answer? With the new Barclaycard Platinum Credit Card offering a fantastic 15 months interest-free credit, it's certainly worth a second look.

What's so great about Barclaycard Platinum?

There aren't many credit cards which can boast a 0% introductory period as generous as this. Only the Virgin Money Credit Card can beat it at 16 months, while the Platinum Cards from NatWest/RBS also offers 15 months interest-free, but only to their existing current account customers. The Santander Credit Card also offers 15 months at 0%, but it charges a 3% handling fee.

Barclaycard Platinum only charges 2.9% for the privilege of transferring your balance. So on a balance of say, £3,000, you'll only have to shell out £87 in fees. This makes it the best choice if you have already had Virgin's balance transfer deal, and you still have money left on your card to clear. Just be aware that 

If you can afford to pay £205.80 each month, your balance plus the transfer fee will be completely cleared in 15 month's time. Voila! Your debts will soon be a distant memory.

To make sure that happens as planned, join our Pay off credit card debts goal where we show you how to destroy your balance more quickly, costing you less. And for more hints and tips on tackling debt, ask the lovemoney.com community for help using Q&A.

Is there a downside?

If you need a credit card for interest-free spending, Barclaycard Platinum also offers a 0% introductory period on purchases, which last for three months. But this is nowhere near a market-leader. The Clubcard Credit Card from Tesco offers a far better 0% deal which lasts for a year, no matter where you do your shopping.

Beware of balance transfers AND purchases

You should be very careful how you use your credit card if it offers a 0% deal on balance transfers, but a different deal on purchases. This is all down to what's known as the order of payments. Barclaycard Platinum operates a negative order of payments which means your repayments are used to clear cheaper debts first, leaving more expensive debts on your card for longer to hike up your interest bill.

If you use your card for balance transfers and spending then you won't incur any interest for the first three months. After this time, your purchases will then be charged at the much higher standard APR of 15.9% (typical). But your repayments will be used to chip away at your balance transfer first, which is still being charged at 0%.

You won't even begin to clear your spending until your balance transfer has been completely paid off. Remember this could take months, or even years, and all the time your purchases are sitting on your card at a whopping rate of 15.9%.

In fairness to Barclaycard they are by no means the only credit card provider to operate a negative order of payments. In fact, 99% of cards work in exactly the same way.

Savvy cardholders will simply make sure they don't use this card for balance transfers and spending. And you should do so too. If you need a 0% card for purchases, consider applying for the Tesco Clubcard Credit Card as well as Barclaycard Platinum. In this way, you can keep different sources of debt separate, and never fall foul of a negative order of payments.

Contactless payments

Having said that, Barclaycard Platinum is a card which encourages you to spend with contactless payments. This is a quick way to pay for purchases that cost less than £10 - such as a coffee or a lunchtime sandwich - using your card like a cash substitute. But, again because of the negative order of payments, these small items will stay on your card and rack up interest until your balance transfer is cleared.

What if you pay your card off in full every month?

If you don't have a balance to transfer, and you clear your card fully every month, Barclaycard Platinum will soon offer a rewards scheme on your spending, called Barclaycard Freedom. You'll earn Reward Money, rather than vouchers or points, which you can use to shop at thousands of participating retailers.

In most cases you'll earn 1% of the purchases you make using your Barclaycard. Reward Money will be credited instantly and can be redeemed immediately too. I think this scheme compares pretty well with other rewards cards and cashback credit cards.

Cashback cards are still more flexible, allowing you to spend the cash you earn wherever you like. But you'll normally have to wait before it is credited to you, unlike Barclaycard freedom which gives you Reward Money straightaway.

Who is Barclaycard Platinum suitable for?

So you can see Barclaycard Platinum has great benefits whether you want to move your balance, or earn rewards on your spending. But, as you might expect with a card this good, Barclaycard will cherry pick cardholders.

For example, you must earn more than £20,000 p.a. and have a good credit rating to qualify. And - excluding your mortgage - debts on credit cards and/or store cards must be less than 10% of your income. Don't forget, if you already have a Barclaycard you won't be able to transfer an existing balance onto the Platinum card.

Don't get rejected

If all that sounds a bit tough, don't panic. You don't need to worry about a rejected Barclaycard application leaving a nasty mark on your credit record because you can check your eligibility before you apply. All you need to do is carry out a pre-application check where you can find out whether you're likely to be accepted. If you're not, don't apply and you'll avoid rejection. And if you are, you can apply with added confidence.

(Remember this isn't a formal credit check so it won't affect your ability to get credit elsewhere. The check will only leave a footprint on your file which shows your credit information has been accessed.)

Taking all this together, I think Barclaycard Platinum Credit Card is a fantastic choice for balance transfers, or for rewards on your spending - but never both!

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