Barclaycard launches longest EVER 0% deal
Today, Barclaycard extended its offer of 18 months 0% on balance transfers to 20 months interest-free, with the one-off fee increasing from 2.9% to 3.2%.
Martin Lewis, creator of MoneySavingExpert.com says:
“The credit crunch’s jaws are being prised open by a 0% balance transfer price war. Barclaycard’s prior 18 month 0% deal was already history’s longest, so today’s extension to 20 months smashes everything we’ve seen before – though it has jimmied things slightly by upping the one-off fee to 3.2%.
“There’s no doubt this is a deliberate reflex slug back at MBNA which this morning stole its best buy crown, launching its own 18 month 0% deal with a slightly lower fee. The two have been battling it out for months.
“And these deals can save people serious money, as they’re balance transfer offers designed for shifting existing debts to, to cut costs. Someone with £3,000 on a standard 18.9% APR card repaying £100 a month would take roughly 40 months to fully clear the debt at around £1,000 in interest. Moving to this deal would see them repay in roughly 30 months costing around £200 – though it’s important they don’t ever spend on the card as that can ruin things.
“Yet while the headline rates far exceed even the best deals in the pre-crunch high lend period, it’s worth remembering credit scoring is far tougher these days, so fewer people are likely to get them, probably only those who need it less.”
Full info at www.moneysavingexpert.com/balancetransfers