CREDIT CARDS

Barclaycard Credit Card Increases Promo Offer

Barclaycard has hit back in the balance transfer battle for the longest interest free period, with the new Barclaycard credit card offering a record 20 months.

After Virgin Money and MBNA both announced an 18 month interest free balance transfer deal, Barclaycard has hit back with the longest ever 0 percent interest period of 20 months.

MBNA were slightly ahead in the best buy list due to their lower balance transfer fee of 2.88 percent prior to the new offer from Barclaycard, which it is thought has spurred a best buy race from the providers, all competing for the best offer.

“I wouldn’t be surprised to see other lenders react accordingly by launching similar days, but with so many vying to go top of the best buy tables, we could see even longer deals emerge,” said Kevin Mountford, Moneysupermarket head of banking.

Confused showed that a year ago, credit card providers typically offered balance transfers with a 0 percent interest free period of 14 months.

The average length of a balance transfer interest free deal currently is 17.8 months, according to Moneysupermarket.

“This wide choice of top deals is great news for consumers looking to save money on interest payments for existing balances,” commented Chris Griffiths, head of credit cards at Confused.

Comparing Credit Cards

If you are on the lookout for a balance transfer with an interest free period there are some important points to consider.

While you may initially think those with the longest interest free periods are the best, you should consider how long it will take you to pay off this balance.

If you are likely to clear it within that interest free time then you will be getting a good deal.  However, the typical APR interest rate on these cards after the interest free period expires usually shoots up to around 16 percent, so if it is not cleared by that point you will be racking up high interest.

Also consider whether you will be using the card to make purchases with, what the interest is on this, and check out the handling fee too.

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