Cards and Loans
Updated: Fri, 11 Jan 2013 01:00:00 GMT | By lovemoney.com

Two 0% cards for people who normally can't get one

If you don't have a spotless credit rating, you may think you can't get a 0% card, but in reality, you probably could.


Two 0% cards for people who normally can't get one

Two 0% cards for people who normally can't get one

0% credit cards are fantastic financial tools. Because you don’t have to pay any interest on your credit card debt, all your repayments can go towards reducing your debt rather than being wasted on interest payments.

But there is a big drawback to most 0% cards. You need to have a very good credit rating to get one.

However, there are two cards that are available to people with ‘average’ credit ratings. In other words, more than half of UK adults should be able to benefit from an interest-free period.

The two cards are the excellent Barclaycard Gold Visa card along with the relaunched Capital One Balance Card Visa. Let’s start with the Capital One card.

Capital One Balance Card Visa

The card offers 0% on balance transfers until your July credit card statement. So if you got one of these cards, you could transfer a debt from another credit card and not pay any interest on the debt for roughly six months.

That gives you a decent period of time to pay off your debt and not worry about further increasing the size of your debt.

And the card doesn’t just offer balance transfers, you can do a money transfer as well if you wish. That means you could transfer some money from your credit card to your current account – then you’d have money to spend or to use paying off other debts such as a payday loan.

This money transfer facility is especially attractive as you can’t do money transfers on the majority of 0% credit cards.

As a rule of thumb, you’ll probably be accepted for the Cap One card unless:

- You’ve never had credit in the UK before

- You have been declared bankrupt in the last 12 months

- You’ve defaulted in the last 12 months

- You’ve had County Court Judgements (CCJs) against you in the last 12 months

- You’ve never had credit in the UK before

So the card looks pretty good for a lot of people, but it does have two drawbacks:

Firstly, you’ll be hit by a very high 34.9% interest rate when the 0% period ends, so you need to be confident you can pay off most or, ideally, all of your debt by that time.

And secondly, you’ll have to pay a 3% fee when you make the transfer. This 3% fee applies regardless of whether you’re doing a balance transfer or a money transfer.

Barclaycard Gold Visa

The big attraction of the Barclaycard Gold Visa card is that if offers a longer 0% period than the Cap One card – 12 months. That gives you a lot more time to really attack your debt and pay it all off.

What’s more, the balance transfer fee is lower at 2.5%. So if you have a £3000 debt, you’ll only have to pay a £75 fee with the Barclaycard whereas you’d have to pay a £90 fee with the Cap One card. The ‘revert to’ interest rate is also lower at 19.9%.

You’ll probably be accepted for the Barclaycard unless:

- You’ve been declared bankrupt in the past

- You’ve had a CCJ or IVA registered against you in the last five years.

- You’ve missed payments on any credit card or loan in the last year

- You earn less than £17,500 a year

- You’re under 21

Different cards for different folks

For many folk the Barclaycard is the better bet because it has the longer 0% period, but it’s also worth noting that the acceptance criteria are tighter for the Barclaycard.

Also please don’t work on the basis that the acceptance criteria we’ve outlined in this article are set in stone. There are no guarantees that any credit card application will be successful, but if it looks like your circumstances make you eligible for at least one of these cards, then it’s probably worth applying.

Magic bullet

It’s also worth remembering that 0% cards aren’t magic bullets. Just because you’ve got a new credit card doesn’t mean you’ve instantly paid off your debt. You still need to do the hard slog of finding spare cash to chip away at your debt month-after-month.

That’s never easy and if you think you’ll need help with that, you can get free advice from one of the debt charities:

National Debtline
Citizens Advice
StepChange Debt Charity

At the other end of the scale, you may have a strong enough credit rating to get one of the best 0% cards. They’re certainly worth going for if you can get one.

For example, the Barclaycard Platinum Low Balance Transfer Fee card charges a 0.9% fee for a 12-month 0% period while you can get a two-year 0% period with the Barclaycard 24 Month Platinum Visa card.

Compare credit cards

16Comments
14/01/2013 12:52
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BEST  EVERONE  GOES  BACK  TO  OLD  TIMES  X PAY CASH FOR EVERTHING  THEN  THEY WOULDNT GET IN DEBT X BE RIPPED OFF BY  CREDIT  CARD COMPANYS X LOAN SHARKS ETC  IF YOU CANT AFFORD  IT  DONT BUY IT  THATS  MY MOTTO EASY  THEN  NO DEBT NO CREDIT CARDS  NO OVERDRAFTS EVERYONE  WOULD  BE  A LOT  BETTER OFF IN THE END  TRUST  ME 
14/01/2013 19:05
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its simple, dont get into debt, live within your means and this is not a story its an advert for credit cards.....
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Research done by me for articles on personal finance/managing personal indebtedness and related problems revealed that some 75-80% of consumers used credit cards for highly extravagant luxury purchases. e.g. office worker bought  Rolex watch
about 7 years ago for £2350, factory worker bought 3-year-old BMW with blacked-out windows for £17,999 and so on.
Rather than concentrate on paying the debt off, they then go to 'Designer Outlets' TAKING THE CARD, and getting carried away with it. The comment by Ram Simmonds sums the situation up very nicely. Also disclosed by my research are the facts that people use credit cards to buy near duplicates of what they already have, perhaps in a different colour. So we see that , put very simply, consumers do NOT NEED these cards. Consumers invent reasons for having them. In the world of digital photography, the big boys (Nikon/Canon/Sony etc) are bringing out a new model every couple of months or so. The model you bought in September is the old model by New Year. So, out comes the credit card and he buys a new one.
14/01/2013 11:10
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Apologies if my post appears three times as I've tried to post but it doesn't appear! Probably filtered

 

Ah, yes, it is filtered

14/01/2013 19:16
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i did not even have a credit card i had my own money in this bank barclay biggist thevies there is all get if u what to be robbed
15/01/2013 11:08
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MSN...why does this warrant a main feature when it is blatant advertising/advertorial for two of your major clients. Bit of strong-arming from your advertisement department then? Seems financial sector has even more clout with media than moral obligation!
14/01/2013 18:33
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all these credit cards and payday loans are a complete rip off you seen the advert not mention any names but starts with W and ends in A what a load of rubbish I know people have to get these loans which make them more paying out...if you can try to do without try to borrow off family and friends if you can with no interest back which will save you in the long term try to keep to the smallest you can I just had to borrow £260 for my MOT which I have borrowed off a friend and I paying £20 a week back to her not bad if you consider the time and interest I would have payed 30 days on this W load I would pay £86 back and in full...no chance if I can I avoid loans...from companys I do have a credit card which is payment first and you do pay very little back...
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