BARCLAYCARD has launched a balance transfer and spending credit card with an interest-free period of 27 months – the joint longest currently around.
The credit card provider has increased its 0 per cent period by one month, meaning it’s now a joint best buy with Sainsbury’s.
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Barclaycard’s Platinum All-Rounder credit card comes with no annual charge, but you’ll have to pay a 3.5 per cent fee if you want to transfer any debt to it.
In comparison, Sainsbury’s charges a 3 per cent balance transfer fee at a minimum of £3.
After 27 months, the Barclaycard credit card increases to a typical annual percentage rate (APR) of 21.9 per cent, so it’s important you clear any debt in full before the interest free period ends.
If you’re unable to pay it all off on time, you could shift the debt to another 0 per cent balance transfer card beforehand – we’ve rounded-up the best cards of this kind.
Balance transfer cards: what you need to know
SHIFTING your balance can be a great way to cut the cost of your debt. But you must use them properly so you don’t just add to it.
Always clear your debt – Credit card firms don’t offer these deals out of the goodness of their hearts. They rely on you not clearing your balance by the time the 0 per cent deal comes to an end so it can start charging you interest.
Always make your payments – If you don’t keep up with your monthly payments, you could lose the 0 per cent offer and start being charged interest. Always try and pay-off more than the minimum payment too to clear your debt quicker and don’t spend on the card either.
Check your deal – Like with all credit cards, you might not be offered the headline deal if you don’t have the best credit history. Use MoneySavingExpert’s eligibility calculator to see what deals you are likely to be accepted for.
But be warned – only those with the very best credit rating will be offered the marketed deal.
So even if you apply and are accepted, you could be offered a shorter 0 per cent period instead and be charged a higher interest rate.
In fact, Barclaycard says it may offer you a 0 per cent interest period of 27 months and then an APR of 24.9 or 29.9 per cent.
Alternatively, you may get the interest-free period for just 13 months as well as the higher APR.
With all credit cards, only 51 per cent of applicant have to be offered the advertised rate.
Another best buy dual credit card is Santander’s All in One credit card, which offers an interest-free period on both spending and balance transfers of 26 months.
It comes with no balance transfer fee and offers 0.5 per cent cashback on all spending, although you’d have to pay £3 a month to use it.
If you’re worried about fees, NatWest’s balance transfer card doesn’t cost anything to use and it lets you transfer the debt for free, as long as you do it within the first three months.
You’ll also get an interest-free period for 20 months on balance transfers, but just three months on spending.
By using an online eligibility checker, you’ll get an idea of your chances of getting accepted or whether it’s likely you’ll be given a higher interest rate.
Comparison website Money.co.uk and consumer site MoneySavingExpert both have online calculators which you can use to see which cards you’re most likely to be accepted for, without affecting your score.
Your lender may also offer an eligibility checker – just make sure that you’re not subject to a credit check, as it could damage your credit score.
Rachel Springall, finance expert at comparison site Moneyfacts, told The Sun: “It’s great to see Barclaycard increasing its interest-free balance transfer term by one month to 27 months but there has also been an increase in the balance transfer fee by 0.8 per cent to 3.5 per cent.
“These tweaks means that the card now offers borrowers a bit more breathing space but it will now cost them more upfront to shift any debts onto the card.
“At a time where it is more common to see providers shortening the length of their interest-free deals, it is positive to see Barclaycard breaking this trend.
“But borrowers must keep in mind that it will cost more upfront than before to move debts.”
If you’re considering applying for a personal loan or balance transfer credit card, here’s the best option for you.
You can also save £300 off your store card balance by transferring the debt to a 0 per cent credit card.
Looking to make a big purchase this year? Here are the best 0 per cent interest-free credit cards for spending and purchases.
