12th May 2014
Barclaycard has once again thrown down the gauntlet in the credit card market and is now offering a table-topping 32-month interest free deal on balance transfers.
Following on from Halifax launching its 31-month balance transfer card last week, Barclaycard has raised its game and now offers the UK’s longest ever 0% balance transfer offer period, with a 2.99% fee.
A borrower wanting to switch from a credit card with at an industry average APR of 17.31%, with a balance of £2,500, would save a considerable £825 in interest by moving.
Barclaycard also still holds onto second place in the best buy tables, according to comparison site MoneySuperMarket, with its 31-month card which charges 2.89%.
Kevin Mountford, head of banking at MoneySuperMarket says: “Barclaycard clearly means business, wanting to ensure they are top dog in the credit cards market, and have only given Halifax a look in for a handful of days.
“The balance transfer war is certainly raging and it will be interesting to see if any other providers are prepared to take on Barclaycard.”
It is worth noting however, that not everyone who is accepted for a balance transfer card will benefit from the interest free period advertised, as some based on their credit score, may be offered a reduced interest free duration or alternatively, a higher interest rate. Mountford explains: “For example, Lloyds Bank offers 0% over 28 months however, the interest free period offered could be reduced to 25 or 22 months depending on your circumstances. The same applies to the typical APR rate. Barclaycard, for example, offers APRs between 18.8% or 29.9% again, depending on your credit score.”