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Barclaycard launches the first 25-month 0% balance transfer card

Rebecca Rutt
by Lovemoney Staff Rebecca Rutt on 28 January 2013  |  Comments 2 comments

With this new card, you won't have to pay any interest on your credit card debt for 25 months!

Barclaycard launches the first 25-month 0% balance transfer card

Barclaycard has launched a market-leading 25-month 0% balance transfer card, the longest 0% period ever!

The Barclaycard 25-Month Platinum Visa card also has a 3.2% fee which sees it storming to the top of the comparison tables.

So on a debt of £2,000 you’d have to pay a £64 fee and if you were moving over £4,000, there would be a £128 charge.

The move from Barclaycard is part of a fierce price war in this market. Just hours before the new Barclaycard offer was announced, Halifax briefly reached the top of the tables with a new 24-month card which has a 3% fee.

But the Halifax card has now been pushed down to third place because as well as launching the new 25-month deal, Barclaycard has lowered the fee on its 24-month balance transfer card from 3.2% to 2.9%. This latter card also offers a six month 0% period on new purchases.

How does it compare?

The 25-month Barclaycard is the best product around for customers looking for a long 0% balance transfer period and the only card to offer such a long interest-free window.

Here are the top five cards with long balance transfer windows:

Card

Balance transfer fee

0% balance transfer period

Fee to pay on £2,000 transfer

Fee to pay on £4,000 transfer

Barclaycard 25-Month Card

3.2%

25 months

£64

£128

Barclaycard 24-Month Platinum

2.9%

24 months

£58

£116

Halifax 24-Month Card

3%

24 months

£60

£120

MBNA 23-month Platinum Visa

2.85%

23 months

£57

£114

Tesco Clubcard Credit Card

2.9%

23 months

£58

£116

So if you think you could need 25 months to pay off your debt, go for the 25-month Barclaycard and pay a 3.2% fee. But if you're confident that two years will be enough, go for the 24-month Barclaycard because it charges a lower fee at 2.9%.

Of course, you may not need two years either. If that's the case you should probably look at the range of low-fee 0% cards currently on the market. The Barclaycard Platinum Low Balance Transfer Fee Visa card will give you a 12-month 0% period and only charges a 0.9% fee. So if you were transferring £2000, you'd only have to pay an £18 fee.

The Natwest Platinum Low Balance Transfer Fee card offers a slightly longer 13-month interest-free period but the fee is also slightly higher at 1%.

Balance transfer cards

If you've carrying a sizeable debt on your credit card, a balance transfer card can be a very useful tool.

Instead of paying around 18% interest, all your repayments go towards paying down paying down your debt. You won't have any other costs apart from the transfer fee.

However, do be careful. It's essential that you make the minimum repayment on your credit card every month on time. If you're late with a payment, your credit card provider will be delighted to take the opportunity to withdraw the 0% deal and start charging you chunky interest payments once again.

If you still have debts to clear at the end of the 0% period, it may be possible to transfer the money to a new 0% card – but there is no guarantee you’ll be accepted for another one, so only use this option as a last resort. It's best to try and pay off your whole debt before the 0% period expires - that's why cards with long 0% periods make sense for folk with large debts.

Sadly though, some applicants won't be able to get a 0% card at all. These plastic beauties are normally only reserved for people with good credit ratings. If you can't get a 0% cared, don't despair. There are things you can do which will help you pay off your debt more quickly. Read more in The best alternatives to payday loans.

But if you think you will be able to get a new 0% card, then get cracking and apply! Barclaycard's new offer is unprecendented and the range of cards across the market is also very strong.

More on credit cards:

The best reward credit cards

Tesco Clubcard balance transfer credit card now offers 0% for 23 months

The best 0% balance transfer credit cards

Get the American Express Preferred Rewards Gold Card fee free for a year

Lovemoney Awards: John Lewis is your favourite credit card

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Comments (2)

  • Tanni
    Love rating 92
    Tanni said

    Not bad at all.

    However, wasn't it the borrowing and living beyond our means what got us in the recession in the first place?...well that's the evaluation from the politicians.

    Spend spend spend all the credit lol

    Report on 28 January 2013  |  Love thisLove  0 loves
  • justjulie
    Love rating 5
    justjulie said

    great news from barclays for existing credit card debt holders but i dont have a current credit card debt..i do however have an existing peronal loan debt with tesco bank..really want a 0% money transfer card to use to clear this loan thats got an APR of 6%...any ideas??

    Report on 29 January 2013  |  Love thisLove  0 loves

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