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 |
|
3.2% |
25 months |
£64 |
£128 |
|
|
2.9% |
24 months |
£58 |
£116 |
|
|
3% |
24 months |
£60 |
£120 |
|
|
2.85% |
23 months |
£57 |
£114 |
|
|
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.
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