Barclaycard offers 24-month 0% balance transfer deal

| November 20, 2012
Barclaycard offers 24-month 0% balance transfer deal

Barclaycard has launched a balance transfer card with an interest-free period of 24 months, the longest ever seen on the market.

The deal on the Platinum Extended Balance Transfer card also includes £30 cashback.

Barclaycard has stolen the top spot for balance transfer cards back from NatWest and RBS, who both launched 23-month interest free deals in October, matching Barclaycard’s existing deal.

Balance transfer deals often come with a hefty transfer fee, but Barclaycard has reduced the fee on its card from 3.2 per cent to 2.8 per cent.

The fee on its 23-month 0 per cent balance transfer deal has also been reduced, from 3.2 per cent to 2.6 per cent.

NatWest’s 23-month Platinum Extended Balance Transfer card comes with a higher transfer fee of 3.5 per cent.

Meanwhile, Moneyfacts.co.uk has reported an increase in the average credit card purchase rate to 19.1 per cent, its highest level for 18 months.

The rate has gone up from 18.1 per cent a year ago and Moneyfacts suggests that this is due to lenders needing to maintain the increasing number of interest-free purchase and balance transfer deals on the market.

Rachel Springall, of Moneyfacts.co.uk, said: “If in doubt, shoppers should opt for an introductory interest-free purchase card, which gives them some breathing space so they can focus on repaying solely the amount they have spent.

“Borrowers with a £5,000 debt on their card, who repay the minimum each month, will now repay an additional £692 over the life of the debt compared to a year ago.”

Lenders have reduced the amount of debt borrowers must pay off each month to 1 per cent, which means that many people are taking longer to repay the balance and are therefore paying interest over a longer period of time.

Tags: ,


Comments (0)

Trackback URL | Comments RSS Feed

There are no comments yet. Why not be the first to speak your mind.

Comments are closed.