Follow this topicThe best 0% balance transfer credit cards
When you choose a balance transfer credit card, you shouldn't just focus on the card with the longest 0% period.
It’s easy to compare credit cards that offer interest-free periods on purchases. All you need to know is how long the 0% period is – the longest offer will be the best card.
Things are more complicated with 0% balance transfer credit cards. As a general concept, these are great products. You can transfer an existing credit card debt to a new card and then not pay any interest on that debt for a long period – currently up to 26 months with Barclaycard.
However, the problem is that you will have to pay a balance transfer fee. This is a percentage of the debt you’re transferring to your new balance transfer card. Many cards charge around 3% but there are a few that are significantly cheaper.
So when you’re choosing a balance transfer card, you need to look at both the length of the 0% period and how expensive the fee is.
0% balance transfer cards with long interest-free periods
Let’s start by looking at the cards with the longest 0% periods:
|
Card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|
26 months |
3.5% minus £10 when you transfer more than £2,000 |
£60 |
18.9% |
|
|
25 months |
2.4% |
£48 |
18.9% |
|
| Halifax 25-Month Balance Transfer Card | 25 months | 2.5% | £50 | 18.9% |
|
25 months |
2.9% |
£58 |
16.9% |
|
| 24 months | 2.85% | £57 | 16.9% | |
| 24 months | 2.89% | £57.80 | 16.9% | |
| NatWest Platinum MasterCard |
24 months |
2.9% |
£58 |
17.9% |
| RBS Platinum MasterCard |
24 months |
2.9% |
£58 |
17.9% |
0% cards with low balance transfer fees
However, if you’re willing to go for a card with a shorter interest-free period, you can pay a much lower fee. Look at this table:
|
Credit card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
Notes |
|
15 months |
1% |
£20 |
17.9% |
||
|
13 months |
1% |
£20 |
17.9% |
||
|
13 months |
1% |
£20 |
17.9% |
||
|
16 months |
1.5% |
£30 |
18.9% |
||
|
15 months |
1.5% |
£30 |
15.9% |
Bear in mind that you'll have less time to pay off your debts with these lower fee cards than with the market leaders. But you will save money on the balance transfer fee.
Average credit rating
Sadly, some people won’t be able to get any of the cards we’ve highlighted in this article. That’s because the credit card companies are only willing to give these cards to people with good credit ratings.
If you want to improve your credit rating, follow the tips in How to build an excellent credit history.
Other options
Alternatively, you could apply for a personal loan and use the money you’ve borrowed to pay off your credit card debt. Right now, the top personal loans are charging just 5.1% in interest.
0% is best
But if you can get one of the top 0% cards, go for one of them. Just make sure you pay off your minimum monthly repayment promptly every time. Otherwise your credit card provider will use your late payment as an excuse to withdraw your 0% deal.
This article is regularly updated as credit cards are launched and withdrawn
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