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When comparing 0% balance transfer credit cards many borrowers focus on how many interest-free months are being offered. This introductory interest-free term is important as it is the period that borrowers have to repay the debt before interest is added to the outstanding balance. As such, it makes sense for borrowers to choose with a card with a long interest-free term as this will likely make repaying the debt within this period more manageable. Saying this, if borrowers just focus on this aspect of the card they could find that transferring their credit card debt could be more expensive and instead they should consider the total cost of borrowing.
The main consideration when looking at the total cost of borrowing with a 0% balance credit card is the balance transfer fees. Often the longest interest-free periods have higher balance transfer fees compared with those that have a lower number of interest-free months. For example, NatWest’s Balance Transfer Credit Card Mastercard offers an interest-free period of 18-months and does not charge a transfer balance fee, whereas Sainsbury’s Bank’s Sainsbury’s 29 Month Balance Transfer Credit Card Mastercard has an interest-free period of 29 months but charges a transfer fee of 2.00%, from a minimum of £3, which would, for example, cost a borrower looking to transfer £2,000 in credit card debt £40 to transfer the balance.
Another factor to consider is the APR, which is the interest added to the outstanding balance once the introductory interest-free period has ended. Although, ideally the outstanding balance will be repaid during the interest-free period, it is not unusual for borrowers to find they are still repaying their debt once the offer has ended, and the amount of interest added will depend on the APR. It is important to remember that although the majority of borrowers are offered the advertised APR, the APR offered to each individual will depend on the borrower’s credit history, so it may be worthwhile doing a credit check first to see the likelihood of being offered the advertised rate.
If you are planning on using your credit card once the balance is repaid you should aim to repay the balance in full each month to avoid falling into future credit card debt. Alternatively, if you need to make purchases and are unable to repay the outstanding balance in full each month, it may be worthwhile getting a 0% purchase credit card, which offers an interest-free period on purchases made using the card. You can compare these cards on our 0% purchase credit card chart.
If you are planning on using your credit card once the balance is repaid you should aim to repay the balance in full each month to avoid falling into future credit card debt. Alternatively, if you need to make purchases and are unable to repay the outstanding balance in full each month, it may be worthwhile getting a 0% purchase credit card, which offers an interest-free period on purchases made using the card. You can compare these cards on our 0% purchase credit card chart.
Along with the total cost of borrowing, when comparing 0% balance credit cards, it is also important to consider any opening restrictions. Some credit cards require applicants to have a set minimum income, for example Barclaycard’s Platinum 24 Month Balance Transfer Via is only available to those with a minimum income of £20,000. Other cards will only be available to existing customers. Borrowers should also be aware that some 0% balance credit cards will charge an annual or monthly fee, although this is more common with reward credit cards than 0% balance cards.
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Just over one in five Brits are planning on taking a holiday during the upcoming Queen’s Jubilee weekend, according to Barclaycard’s latest Consumer Spending Index. Of this number, 84% of respondents are planning a trip abroad. “While concerns around rising household bills may continue to hamper spending on non-essential items, the upcoming Platinum Jubilee Weekend and summer months should provide opportunities for Brits to spend on celebrations and make the most of warmer weather,” said José Carvalho, Head of Consumer Products at Barclaycard.
Just over one in five Brits are planning on taking a holiday during the upcoming Queen’s Jubilee weekend, according to Barclaycard’s latest report.
From 1 June, Buy Now Pay Later (BNPL) provider Klarna will start sharing its customers payments made on time, late payments, and unpaid purchases with credit reference agencies. This means that if a consumer falls behind on any repayments, their credit score will worsen. Equally, if a consumer repays their debts on time their credit rating will improve.
The UK’s biggest Buy Now Pay Later provider will share its customer debt and payments with Experian and TransUnion from 1 June.
There are 20.2 million UK adults who may have difficulty accessing credit from mainstream lenders according to fintech company TotallyMoney and accounting firm PWC. This is likely due to minor adverse credit history, volatile incomes which can impact affordability assessments, or minimal credit history. People who fall into this category are often referred to as “under-served.”
There are 20.2 million UK adults who may have difficulty accessing credit from mainstream lenders.
Use our balance transfer calculator and find out how much you could save by switching a balance to a 0% balance transfer credit card.
Use our balance transfer calculator and find out how much you could save by switching a balance to a 0% balance transfer credit card.
Just over one in five Brits are planning on taking a holiday during the upcoming Queen’s Jubilee weekend, according to Barclaycard’s latest Consumer Spending Index. Of this number, 84% of respondents are planning a trip abroad. “While concerns around rising household bills may continue to hamper spending on non-essential items, the upcoming Platinum Jubilee Weekend and summer months should provide opportunities for Brits to spend on celebrations and make the most of warmer weather,” said José Carvalho, Head of Consumer Products at Barclaycard.
Just over one in five Brits are planning on taking a holiday during the upcoming Queen’s Jubilee weekend, according to Barclaycard’s latest report.
From 1 June, Buy Now Pay Later (BNPL) provider Klarna will start sharing its customers payments made on time, late payments, and unpaid purchases with credit reference agencies. This means that if a consumer falls behind on any repayments, their credit score will worsen. Equally, if a consumer repays their debts on time their credit rating will improve.
The UK’s biggest Buy Now Pay Later provider will share its customer debt and payments with Experian and TransUnion from 1 June.
There are 20.2 million UK adults who may have difficulty accessing credit from mainstream lenders according to fintech company TotallyMoney and accounting firm PWC. This is likely due to minor adverse credit history, volatile incomes which can impact affordability assessments, or minimal credit history. People who fall into this category are often referred to as “under-served.”
There are 20.2 million UK adults who may have difficulty accessing credit from mainstream lenders.
Use our balance transfer calculator and find out how much you could save by switching a balance to a 0% balance transfer credit card.
Use our balance transfer calculator and find out how much you could save by switching a balance to a 0% balance transfer credit card.
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