Credit card interest rates are at a 20-year high, according to the most recent data from Moneyfactscompare.co.uk.
Unless you pay off your credit card in full every month, you’re likely to be paying an average of 35.8 per cent annual percentage rate (APR).
But by moving your debts onto a balance transfer credit card, you can avoid being charged any interest for a set period of time.
This gives you the breathing space to clear the debt without accumulating more, potentially saving you thousands of pounds in interest.
Before you apply for a balance transfer credit card, there are a few important things to keep in mind. The first is that the 0 per cent offer will end, and once it does, your interest rate will go up, so it’s worth calculating whether you’re likely to pay off your debt during this time.
Usually, you’ll have to pay a balance transfer fee to move your debt over. There are fee-free deals out there, but you’ll get a shorter 0 per cent period so work out the numbers properly to see which benefits you most. Finally, if you’re looking for a credit card for everyday use, a balance transfer card isn’t the best choice as the 0 per cent interest usually only applies to transferred debt, not new purchases.
Right now, there’s a balance transfer credit card offering 0 per cent for 14 months with no transfer fee.
Below, we’ve rounded up the top offers. These rates are correct at the time of writing but make sure you check for the latest deals and ensure any financial product suits your needs and circumstances before applying.
Barclaycard Platinum
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Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
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Barclaycard Platinum offers 0 per cent interest on balance transfers for up to 36 months – that’s three years – from the date you open your account. You must make the transfer within 60 days and you’ll pay 3.15 per cent on each transfer made.
Register by Thursday 28 May and you’ll also get 12 months’ of Apple TV for free, provided that you’re a new customer.
Alternatively, you can get a 0 per cent balance transfer for 14 months with no transfer fee. This is the longest fee-free balance transfer card on the market right now, so if you think you’ll be able to pay off your debt in this time, it may be worth opting for this offer and avoiding the extra charge.
Once the 0 per cent period is over, you’ll pay 24.9 per cent APR on both of these cards.
NatWest
NatWest’s Longer Balance Transfer credit card offers 0 per cent interest for up to 36 months. You’ll need to make the transfer within three months of opening the account, and you’ll be charged a 3.1 per cent balance transfer fee.
After your 36-month interest-free period, you’ll pay 24.9 per cent APR on this card.
NatWest also offers up to 11 months with no fee, but this is currently beaten by the 14-month Barclaycard Platinum option above.
Bear in mind that you won’t be able to transfer debts from other banks in the NatWest group, namely: Royal Bank of Scotland (RBS) and Ulster Bank.
Tesco Bank
Similar to the deals above, Tesco Bank offers 0 per cent for up to 36 months, and you’ll pay 24.9 per cent APR once your interest-free period ends.
You’ll need to make your transfer within 90 days and pay a fee of 3.45 per cent.
Vanquis
You’ll need a decent credit score to be accepted for the cards above, but if this isn’t you, check if you could get a Vanquis Balance Transfer Credit Card.
Vanquis allows you to check your eligibility without affecting your credit score, though you won’t be eligible if you’re currently bankrupt or have an active Individual Voluntary Arrangement (IVA).
Transfer your debt within 60 days and you’ll get 0 per cent interest for up to 19 months. Though, this is subject to eligibility, meaning that some customers will get a shorter interest-free term than this. The balance transfer fee is up to 3.9 per cent.
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