The balance transfer market is heating up again as NatWest and RBS extend their platinum credit card deals by one month to 27 months.
Credit card debt can be a struggle to pay off, but if you’re having to make expensive interest payments then it’s twice as hard to get back into the black.
A balance transfer card can help and the new deals from NatWest and RBS offer an attractive 27 months of 0% interest for new customers.
The fee of 3.10% will be applied on any amount transferred over. Therefore if the debt is £2,000 the fee would be £62.
The move puts this card in second place in the balance transfer market, with Barclaycard in the number on spot with its 27 month card with a lower fee of 2.99%.
Tesco, Virgin and Halifax also have similar deals.
The top five 0% cards
|
Card |
0% period |
Balance transfer fee |
Fee paid on £2,000 transfer |
Representative APR after 0% period ends |
|
27 months |
2.99% |
£59.80 |
18.9% |
|
|
27 months |
3.10% |
£62 |
18.9% |
|
|
27 months |
3.10% |
£62 |
18.9% |
|
|
27 months |
3.15% |
£63 |
16.9% |
|
|
26 months |
2.5% |
£50 |
18.9% |
These cards are market-leading because they offer the longest 0% periods around, but they might not be suitable for you. If you would prefer one with a smaller fee, there are options around.
Tesco, for example, went against the grain and launched a card with no fees in June which also has a 12-month 0% period. Unfortunately it now has a fee of 0.9%, which is still market leading, but not as nice as being fee-free!
[SPOTLIGHT]But if 12 months isn’t long enough there are cards with longer 0% interest rates, such as the Halifax All In One Online MasterCard and the Lloyds TSB Online Platinum card which both have 15 months of 0% interest and a 1% fee.
You can find out more options in our article - The best low-fee balance transfer credit cards.
Balance transfer cards
Using a balance transfer card is an excellent way to clear your debts as during the 0% period you’re given a break from interest payments.
However, they only work if used correctly and you need to make sure you don’t miss any payments. Making a late payment, or forgetting altogether, can seriously affect your credit rating and the 0% period could be cut.
Setting up a direct debit to pay off a certain amount each month is an easy way to manage the card during the 0% period.
It’s also important not to get caught out by the interest rate once it reverts to the standard rate. At this point it may be possible to switch to another 0% card but there is no guarantee you’ll be accepted.