Get the top credit card before it goes
Image © West End61 - Rex Features
Barclaycard is about to withdraw its market-leading two-year balance transfer card from the market.
As the name suggests, the Barclaycard 24 Month Platinum Visa card offers a 0% period that lasts for two years.
So if you have a big credit card debt, you could transfer it to this Barclaycard and you won't have to pay any interest on the debt for 24 months. Admittedly, you will have to pay a 3.2% balance transfer fee, which is higher than the average.
Unfortunately, the 24-month card is being withdrawn at the end of the month, so if you fancy this card, you'll want to apply as soon as possible.
Alternatives
But if you can't apply by the end of the month, what are the alternatives?
Well, if you look at the comparison tables, you'll see the HSBC Visa card, which offers a 23-month 0% period, subject to a 3.3% fee. However, this offer will be withdrawn on January 31st and is only available to HSBC current account customers.
Below that, there are two cards which offer 22-month 0% periods. First up is the Barclaycard 22 Month Platinum Visa card. Although the interest-free offer is slightly shorter than those mentioned above, it does have a lower balance transfer fee of 2.9%.
Second is the Halifax MasterCard, which also offers 22 months but the fee is a pretty hefty 3.5%.
Below that, there's yet another Barclaycard offering a 21-month period followed by six cards with 20-month periods. For more information, look at the table below:
Longest 0% balance transfer cards
| Card | Balance transfer period | Balance transfer fee | 'Revert to' APR interest rate | Last day on market |
|---|---|---|---|---|
| Barclaycard 24 Month Platinum Visa | 24 months | 3.2% | 17.9% | 31 January |
| HSBC Visa | 23 months | 3.3% | 17.9% | 31 January |
| Barclaycard 22 Month Platinum Visa | 22 months | 2.9% | 17.9% | No known withdrawal date |
| Halifax MasterCard | 22 months | 3.5% | 17.9% | No known withdrawal date |
| Barclaycard 21 month Visa | 21 months | 2.6% | 17.9% | No known withdrawal date |
| Virgin Money MasterCard | 20 months | 2.99% | 16.8% | No known withdrawal date |
| Halifax 20 month MasterCard | 20 months | 3% | 16.9% | No known withdrawal date |
| Natwest Platinum MasterCard | 20 months | 2.9% | 17.9% | No known withdrawal date |
| Creation Card | 20 months | 3.2% | 16.9% | No known withdrawal date |
| first direct gold card | 20 months | 2.9% | 19.9% | No known withdrawal date |
All of the above cards are attractive but they're not necessarily the best option for everyone.
That's because you'll be charged a lower fee if you're prepared to accept a shorter 0% period. If you sign up for the Barclaycard Low Fee Platinum Visa card, you'll only be charged a 1.6% fee and you'll get a 16-month 0% period.
You can also get a low fee if you take out the Virgin All-Round Credit Card. You won't have to pay any interest for 16 months and the balance transfer fee is still pretty low at 1.99%.
So if you want to transfer a £2,000 debt, you'll only have to pay a £32 fee with the low-fee Barclaycard whereas you'd be charged £70 if you went with the Halifax MasterCard.
If you think you can pay off your debt within 16 months, we'd recommend one of these two low-fee cards every time.
Eligibility
So far we've only looked at two factors when choosing a 0% balance transfer credit card - the length of the 0% period and the size of the fee. But there is one more thing to think about: whether you are eligible to apply.
If your existing debt is on a Barclaycard, you can't transfer that debt to another Barclaycard and benefit from the 0% offer. You'll have to transfer to a credit card operated by a different group, for instance HSBC or Halifax.
Remember that one group can operate several different credit card brands. So, for example, if your debt is on a NatWest credit card, you can't transfer it to a Royal Bank of Scotland card.
The other eligibility issue is your credit rating. If your credit history is poor, the banks probably won't want to give you a 0% card. They don't trust you to pay back your debt on time. That's a pity because often the people who would benefit most from a 0% card are those with a weak credit rating.
If you can't get a 0% card and you're beginning to feel overwhelmed by the size of your debt, don't panic. The answer is to get some free debt advice from one of the debt advice charities such as National Debtline or the Consumer Credit Counselling Service. You may find that your debt problems aren't quite as big as you thought.
And if you are able to get a 0% card, make sure you don't just focus on the length of the 0% period. The size of the fee is just as important.
If you think you can pay off your debt within 16 months, the Barclaycard Low Fee Platinum Visa is the best bet. But if you think you need longer, get cracking and apply for Barclaycard's 24 month card before the end of the month.
The banks have absolutely disgraced themselves and failed this country in such a gigantic way that it seems unbelievable. What makes this worse is how the government have let them get away with and continue to get away with it. What the hell is going on but very obvious corruption!? It's such a shame that after a year has passed, people won't even remember that it happened and the wheel will turn again, no doubt. People will lagain ose their livelihoods, their credit ratings and any hope of recovering if the government keep shelling out OUR money to these greedy ****s. And we'll keep voting them in and using the banks' services, whilst all along have our rights disregarded by those who we elect to protect our country.
Sheesh. I need a valium.
they talk about credit cards as if they are something wonderful .. get a reality check ... it's just their way of stealing your money.
If you have any sense you will tell them to stick their credit card where monkeys stick their nuts.
There is nothing wonderful about being up to your eyes in debt and getting worse every day.
