Hot on the heels of NatWest and RBS announcing a table-topping 0% 26-month deal, Barclaycard has responded with a new 0% 27-month balance transfer card.
The move takes Barclaycard to the top of the balance transfer tables once again.
As well as 0% interest on balance transfers for 27 months, the new Platinum card offers 0% interest on purchases for six months – but comes with a fee of 3.5%
More time to clear debt – but at a price
Sarah Robb, credit card expert at uSwitch.com, says: “Balance transfer cards can provide one of the cheapest escape routes for those looking to clear debt, and this latest offering is great news for consumers who need a little extra time to pay back what they owe without accruing extra interest.
“Yet, while Barclaycard may have fought back once again to retain its stranglehold, the 3.5% fee is steep and 0.85% more than NatWest and RBS. This means that people would pay £8.50 extra when transferring a £1,000 balance.”
Balance transfer revival
Ms Robb continues: “This launch suggests that a revival of competitive balance transfer deals is on the cards. But, while it is great to see more choice, a best-buy product is only beneficial to consumers if they can actually lay their hands on it. Market-leading deals are often only available to those with a squeaky clean credit rating, and those who are refused need to bear in mind that applying for a number of balance transfer cards in a short space of time may worsen their credit rating.
“Our advice is to think carefully about how long you really need to pay off your debts – you may actually only need a card with a 16 or 18 month interest-free period. If this is the case, not only could you have a better chance of being accepted, but you’ll save some money on the balance transfer fee too. There is a huge choice of cards available on the market and it is always worth shopping around to find the best deal to suit your needs.”