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Barclaycard offers balance transfer discount
Barclaycard offers £30 discount on its Platinum balance transfer fees.
Image © Barclaycard
Barclaycard has announced a £30 discount on balance transfer fees for new cardholders of its Platinum balance transfer credit cards.
The deal runs from 3 September until 27 September and is available on transfers of at least £2,000 on either the Barclaycard 22-Month Platinum Visa or the 21-Month 0% Platinum card.
Balance transfer credit cards are cards designed to help you pay off existing credit card debt. For a fee - a percentage of the sum being transferred - you can move the debt onto a card offering 0% interest.
The benefits are obvious - you get to pay off your debt in manageable chunks, without incurring interest. Every penny you pay in repayments goes directly towards reducing your debt, meaning it's paid off quicker and cheaper.
How the discount affects the balance transfer fee
Let's take a look at the balance transfer fee you would ordinarily pay on these cards on a range of different balance transfer sizes:
| Card | Balance transfer fee | Fee paid on transfer of £2,000 | Fee paid on transfer of £3,500 | Fee paid on transfer of £5,000 | Fee paid on transfer of £10,000 |
|---|---|---|---|---|---|
| Barclaycard 22-Month Platinum balance transfer card | 2.9% | £58 | £101.50 | £145 | £290 |
| Barclaycard 21-Month Platinum balance transfer card | 2.6% | £52 | £91 | £130 | £260 |
And now let's take a look at how that fee changes with the £30 discount:
| Card | Balance transfer fee | Fee paid on transfer of £2,000 | Fee paid on transfer of £3,500 | Fee paid on transfer of £5,000 | Fee paid on transfer of £10,000 |
|---|---|---|---|---|---|
| Barclaycard 22-MonthPlatinum balance transfercard | 2.9% (-£30) | £28 | £71.50 | £115 | £260 |
| Barclaycard 21-MonthPlatinum balance transfercard | 2.6% (-£30) | £22 | £61 | £100 | £230 |
As you can see, particularly for smaller balance transfers, the discount is really significant. To pay only £22 in order to enjoy 21 months in which to pay off your £2,000 debt is a pretty extraordinary deal.
How the fee compares
Below are the fees charged by the 10 non-Barclaycard balance transfer cards offering the longest 0% periods, and the fee you'll face on a £2,000 balance transfer:
| Card | 0% period | Balance transfer fee | Fee paid on transfer of £2,000 |
|---|---|---|---|
| HSBC Visa* | 23 months | 3.3% | £66 |
| RBS Platinum MasterCard | 22 months | 3.2% | £64 |
| NatWest Platinum MasterCard | 22 months | 3.2% | £64 |
| Halifax MasterCard | 22 months | 3.5% | £70 |
| Virgin Money MasterCard | 20 months | 2.99% | £59.80 |
| Nationwide Visa | 20 months | 3.1% | £62 |
| Nationwide Select | 20 months | 3.1% | £62 |
| MBNA Platinum | 20 months | 2.85% | £57 |
| Halifax 20-Month MasterCard | 20 months | 3% | £60 |
| Creation 20-month MasterCard | 20 months | 3.2% | £64 |
*Only available to existing current account holders
This table clearly shows just what a significant difference the discount makes to the balance transfer fee. For example, with the Halifax MasterCard you'll be shelling out an extra £42 for exactly the same 0% period as the 22-month Platinum!
Consider the 0% period
When picking a balance transfer card, it's not just the fee you need to consider. The other main consideration should be the interest-free period.
You want to select a card that gives you long enough in which to pay off the debt before you start being charged interest. The bigger your debt, the more important it is to get a card offering a long 0% period.
And the good news is that Barclaycard's two cards are right at the top in this respect too. Yes, you can get an extra month or two with the HSBC Visa, but that's only available to existing current account customers.
Here are the repayments you'd need to make on a £2,000 debt (plus the balance transfer fee) to clear the debt on the top four cards above, plus the Barclaycard credit cards, before interest starts being charged:
| Card | 0% period | Debt plus transfer fee | Monthly payments required to pay off debt before interest is charged |
|---|---|---|---|
| HSBC Visa* | 23 months | £2,066 | £89.83 |
| Barclaycard 22-Month Platinum | 22 months | £2,028 | £92.18 |
| RBS Platinum MasterCard | 22 months | £2,064 | £93.82 |
| NatWest Platinum MasterCard | 22 months | £2,064 | £93.82 |
| Halifax MasterCard | 22 months | £2,070 | £94.09 |
| Barclaycard 21-Month Platinum | 22 months | £2,022 | £96.29 |
*Only available to existing current account holders
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