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Halifax launches 25-month interest-free balance transfer credit card

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Halifax has jumped to the top of the best buy balance transfer credit card tables by increasing its 0% period to an incredible 25 months.


Halifax has become the second provider to launch a balance transfer credit card with an interest-free period of more than two years.

The lender’s card previously offered 24 months at 0%, but this has now been increased to 25 months. Transfers are subject to a 3% fee, while there is also a three-month 0% period on purchases.

The balance transfer war

At the end of January Barclaycard became the first to offer a 25-month 0% card with its Platinum Visa. And while others haven’t been willing to go quite that far, recent weeks have seen both NatWest and Royal Bank of Scotland move to 24 months on their own interest-free periods.

The table below covers the cards offering the longest 0% terms on balance transfers.

Card

0% balance transfer period

Transfer fee

Fee paid on a £2,000 transfer

Barclaycard 25-Month Platinum Visa 25 months 2.9% £58

Halifax Balance Transfer Card

25 months

3%

£60

Barclaycard 24-Month Platinum Visa

24 months

2.8%

£56

RBS Platinum MasterCard

24 months

2.9%

£58

NatWest Platinum MasterCard

24 months

2.9%

£58

Tesco Clubcard Credit Card for Balance Transfers

23 months

2.9%

£58

MBNA 22-Month Platinum Visa

22 months

2.5%

£50

Lloyds TSB Platinum MasterCard

21 months

1.5%

£30

Nationwide Visa

20 months

1.55%

£31

So in truth there’s very little difference between the top five balance transfer credit cards, all of which offer either 24 or 25 months interest-free and a fee of between £56 and £64. Great news if you have a decent stack of debt in need of clearing as you have plenty of choice!

The last time Halifax moved to the top of the best buy tables, within hours Barclaycard fired back with a new leading deal of its own. It did so again this time, cutting its fee from 3.2% to 2.9%.

Paying a smaller fee

Also worth noting are the two cards at the bottom of the table, which charge far smaller fees than the rest of the top ten.

Before you apply for a balance transfer card, work out how quickly you think you’ll be able to clear the balance. If you can do it in 21 months or fewer, then it’s probably a good idea to go for a card with a smaller balance transfer fee.

The Lloyds TSB Platinum is currently offering a half-price balance transfer fee, which is why it’s so low. That offer was due to expire next week but has been extended for a month, so there’s still a little time to take advantage.

Below are some more excellent options if you don’t need a lengthy 0% period.

Card

0% balance transfer period

Transfer fee

Fee paid on a £2,000 transfer

NatWest Platinum Low BT Fee Credit Card

13 months

1%

£20

RBS Platinum Low BT Fee Credit Card

13 months

1%

£20

MBNA Platinum Credit Card

14 months

1.25%

£25

Fluid Card

15 months

1.5%

£30

Barclaycard Low BT Fee Visa

16 months

1.5%

£30

Bank of Scotland Platinum Online MasterCard

18 months

1.5%

£30

More on credit cards:

The best reward credit cards

The best 0% balance transfer credit cards

The best 0% purchase credit cards

The best credit cards to use abroad

How to build an excellent credit history

The alternative to chip and pin cards

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