As Lloyds TSB offers a discounted balance transfer fee on its 15-month 0% deal, Which? Money experts consider whether the longest 0% deal is always best.
Lloyds TSB is currently offering a 50% refund on the balance transfer fee paid by customers transferring a balance to its cards. The Platinum MasterCard offers a 15-month 0% balance transfer deal if you apply online, while the Duo Airmiles card offers a shorter six month 0% deal, but with a lower standard APR of 15.9%.
Customers have until 24 October to apply and must transfer at least £1,500 before 30 October to qualify for the reduced 1.5% transfer fee.
How does this deal compare with longer deals?
There are currently much longer 0% balance transfer deals on the market, with interest-free periods of up to 22 months offered by Barclaycard and Halifax. However, both of these deals charge around twice the balance transfer fee charged by Lloyds TSB.
Barclaycard charges a 3.2% handling fee on the Platinum Extended Balance Transfer Visa (reduced to 2.9% for customers who transfer a balance within the first 60 days) and the Halifax Balance Transfer MasterCard charges a very high fee of 3.5%. Therefore a customer who wants to transfer a £3,000 balance would be charged £45 in handling fees by Lloyds, £87 by Barclaycard and £105 by Halifax.
If you’re likely to clear the balance within 15 months, the Lloyds deal offers much better overall value. If, however, you’ll need longer to pay it back and don’t want to keep switching, the longer deals could be a better option over the 22-month term.
Other balance transfer deals with low balance transfer fees
If you don’t want to apply for the Lloyds deal, or are too late in submitting an application, the following two cards are worth a look:
- Virgin Money All Round Mastercard which offers 0% for 16 months with 1.99% handling fee and 17.9% representative APR.
- Barclaycard Platinum Balance Transfer Low Handling Fee Visa which offers 0% for 16 months with 2.1% handling fee and 18.9% APR.
For daily updates of the best 0% credit cards on the market, see our online Best Rate tables.
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