Credit cards Updated:
With Christmas rapidly approaching a lot of consumers are looking for ways to cut the cost of their festive spending. Well, why not use balance transfer credit cards to spread the cost?
Balance transfer cards can be a great way to pay off Christmas debt without needing to rack up huge amounts of interest in the process, and if managed efficiently they can be a great way to spread the cost of Christmas.
Purchases made on another credit card can be transferred over to the new one, and with some offering 0% on balance transfers for two years or more consumers will be able to pay off their festive spend in small monthly amounts without accruing any more debt.
As with any credit card, balance transfer cards need to be managed effectively. In this case customers need to ensure the full amount can be paid off by the end of the interest-free period, and with purchases being subject to a separate interest rate they should try to avoid using these cards for further spending.
Cardholders should also be aware that failing to meet minimum repayments will mean interest rates will be applied, effectively cancelling out the benefits, so they need to be confident that they can keep up with regular repayments.
Barclaycard Platinum 30 Month Balance Transfer Visa
Penny says… "Taking the top spot in the balance transfer sector is the Platinum 30 Month Balance Transfer Visa from Barclaycard, offering a market-leading 0% on balances for the first 30 months – the longest introductory balance transfer period currently available.
"Cardholders can also benefit from 6 months 0% interest on purchases to add to the appeal."
Penny says… "Sitting comfortably in second place is the Platinum 28 Month Balance Transfer Visa, again from Barclaycard, this time offering an introductory 0% interest-free period of 28 months.
"Customers can benefit from a reduced balance transfer fee of 2.49%, with the added benefit of 0% on purchases for the first 6 months."
Tesco Bank Clubcard Credit Card for BT MasterCard
Penny says… "Achieving a top three spot is this card from Tesco Bank, offering an impressive 0% balance transfer rate for the first 28 months as well as a 0% purchase rate for three months.
"Cardholders can also earn Clubcard points on their purchases, racking up 5 points per £4 spent at Tesco and 1 point for every £4 spent elsewhere."
Penny says… "In fourth spot is NatWest's Platinum BT Credit Card MasterCard, again offering an introductory 0% on balance transfers for 28 months.
Penny says… "Barclaycard has done it again with a third balance transfer credit card making the top five, this time its Freedom Rewards 27 Month Visa offering an impressive 0% on balance transfers for 27 months.
"Cardholders can also benefit from a low balance transfer fee and 0% on purchases for the first 6 months, while the opportunity to earn Freedom Rewards points (which can be redeemed at selected partners) adds to the incentives."
Information & Rates correct as at: 28/10/2013
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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.
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