With Christmas and the New Year celebrations behind us, many of us will be looking to get our finances in shape to begin 2017.
One of the ways you can do this is with a balance-transfer credit card. If you’ve put your Christmas spending on your credit card and are paying interest on your balance, a balance-transfer card could help.
Here, we look at some of the leading deals on the market that will help you cut down the cost of your debt. For each deal, we’ve included a link to the Which? Money Compare Tables where you can find more information.
What is a balance-transfer credit card?
A 0% balance-transfer credit card allows you to transfer an existing balance to a new card, which won’t charge you interest until the 0% period ends. There is a huge amount of cards to choose from, as providers compete for customers by offering longer 0% deals; the leading cards now offer 0% interest on balance transfers for nearly three and a half years.
While the benefits of a balance-transfer card are easy to see, it’s important to clear the debt entirely before the 0% period ends, as you will be charged interest on the remaining balance as soon as the period ends.
Also, pay attention to the balance-transfer fee. Most cards will charge this one-off fee, typically ranging between 0.25% and 3% of the debt you are moving. In general, the longer the deal lasts, the higher the fee, so consider how quickly you’re able to clear your debt.
Those with a lower credit rating may be offered a higher APR or a shorter 0% period.
Which? Money Compare table – 0% balance-transfer cards – hundreds of deals compared
Longest 0% balance-transfer credit card deals
The Barclaycard Platinum Transfer Card now comes with a 0% interest-free period of 42 months, which is currently the joint longest deal in the Which? Money Compare tables. It offers 0% interest on purchases for six months and comes with a balance-transfer fee of 2.99%. Its APR is 18.9%.
Sainsbury’s Bank also has a card with a 42-month 0% period but has a slightly larger balance-transfer fee of 3.5%.
Santander, Halifax and Virgin all offer credit cards offering 41-month balance-transfer deals. The Santander All in One Card doesn’t have a transfer fee, but you will pay an annual fee of £36.
Balance-transfer credit cards with no fee
Halifax offers a 25-month 0% interest period with no balance-transfer fee, which is the joint longest in our tables. The card has an APR of 18.9% and includes 0% interest on purchases for six months. Sainsbury’s Bank also offers 25 months of 0% interest on balance transfers, but this card doesn’t have a 0% purchase offer. Its APR is 18.9%.
Another option is the Post Office’s Money Platinum Card which has a 0% period of 22 months, no balance-transfer fee and an APR of 17.8%.
Which? Money Compare table – 0% balance-transfer and purchase cards – our tables are updated daily
- We’ve listed the top 9 reasons to get a credit card
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