Barclaycard has increased its top interest-free balance transfer credit card from 32 to 33 months – the longest ever 0% deal available in the UK.
Barely a week seems to go by without a new market-leading 0% balance transfer credit card being launched by Barclaycard.
This time, the company has introduced a deal that gives borrowers 33 months interest-free when they switch their debts to its Platinum credit card.
The transfer fee – the cost of moving your balance to Barclaycard – is 2.99%.
Credit card price war
The new offer comes less than a month after Barclaycard introduced a credit card that gave customers 32 months 0% on balance transfers. Until today this was the longest 0% deal around.
And, in a repeat of last months’ change, the latest move was prompted by a new offer from Halifax.
This time Halifax increased the interest-free period on its balance transfer credit card from 31 to 32 months, with a transfer fee of 3%, which challenged Barclaycard’s 32-month card.
But Barclaycard hit back to go clear of the competition at the top of the balance transfer credit card best-buy table by introducing its new 33-month deal.
Save £1,068 in interest
Nerys Lewis, head of credit cards at Confused.com, says: "Balance transfer cards can be useful to people with existing credit card debt to clear.
"The 0% interest periods mean cardholders can shift a balance from one card to another and, if they were paying interest on their old card, clear their debt while avoiding extra charges.”
Lewis adds: "If you have a balance of £3,000 accumulating interest at the average rate of 17.9% APR and move your balance to Barclaycard’s 0% 33-month deal, you could save £1,068.62 in interest charges over 33 months."
That’s after paying the balance transfer fee of 2.99% and assuming you pay off 1% of your balance plus any charges or fees, on time each month.
‘Now is a great time to find a good deal’
Barclaycard only accepts new applicants, so if you are already a Barclaycard customer you’ll have to look elsewhere.
"However," says Lewis, "with the likes of MBNA, Tesco and Halifax also offering more than 30 months interest-free, whichever card you’re looking to shift a balance from, now is a great time to find a good deal."
It’s also important to remember the best credit card deals are generally reserved for people with the best credit history.
So, if your credit rating is anything less than top notch you’re unlikely to get the very best offers.
But there are several simple steps you can take to improve your credit record.
These include making sure you’re registered on the electoral roll, paying all your bills on time and making more than the minimum payments on existing credit cards.