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You can find the current article at its original source at http://www.guardian.co.uk/money/2012/nov/02/credit-cards-balance-transfers-price-war
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| Version 1 | Version 2 |
|---|---|
| Credit cards are back in the balance transfer market | Credit cards are back in the balance transfer market |
| (about 1 month later) | |
| Borrowers with a good credit record looking for a super-low-cost loan, can take advantage of the rejuvenated 0% credit card market that's undergoing a consumer-friendly price war. | Borrowers with a good credit record looking for a super-low-cost loan, can take advantage of the rejuvenated 0% credit card market that's undergoing a consumer-friendly price war. |
| The best deals are still reserved for those with well-paid jobs and clean financial records, but if you fit into that category, it is now very easy to get your hands on a very cheap loan. | The best deals are still reserved for those with well-paid jobs and clean financial records, but if you fit into that category, it is now very easy to get your hands on a very cheap loan. |
| Andrew Hagger of Moneycomms.co.uk says: "I'd have expected this market to get going just after Christmas, but it's all started up now." | Andrew Hagger of Moneycomms.co.uk says: "I'd have expected this market to get going just after Christmas, but it's all started up now." |
| He says the cards can be divided into two distinct areas – either a long 0% term (up to 23 months) with higher balance transfer fee, or a shorter interest-free term with a much lower, one-off balance fee – in some case less than 1%. | He says the cards can be divided into two distinct areas – either a long 0% term (up to 23 months) with higher balance transfer fee, or a shorter interest-free term with a much lower, one-off balance fee – in some case less than 1%. |
| "Just this week three top-value credit cards have come on the market. Providers have realised that not everybody switching a balance is looking for a 20-month-plus term to repay the debt, some people are looking to repay inside 12 months, but at the lowest cost," he adds. | "Just this week three top-value credit cards have come on the market. Providers have realised that not everybody switching a balance is looking for a 20-month-plus term to repay the debt, some people are looking to repay inside 12 months, but at the lowest cost," he adds. |
| MBNA is offering a low-fee credit card, with a 0% term for 14 months and a balance transfer fee of 1.25%. NatWest has probably the best shorter-term deal – 0% for 13 months on transfers, and six months on purchases - with a balance transfer fee of just 1%. | MBNA is offering a low-fee credit card, with a 0% term for 14 months and a balance transfer fee of 1.25%. NatWest has probably the best shorter-term deal – 0% for 13 months on transfers, and six months on purchases - with a balance transfer fee of just 1%. |
| Moving a £5,000 balance on an existing card, would cost a transfer fee of £50, but no interest if they pay it off after 12 months or before. | Moving a £5,000 balance on an existing card, would cost a transfer fee of £50, but no interest if they pay it off after 12 months or before. |
| If you want to park a credit card balance for the longest period, the Barclaycard Platinum card is offering 0% interest for 23 months on balance transfers (with a higher 2.8% transfer fee), and 0% on purchases made in the first three months. Savvy consumers can use their existing card to buy furniture, an expensive holiday, car or other big ticket item, then transfer the balance to a 0% card – allowing you to defer paying for it for almost up to two years, for almost nothing, provided you are scrupulous in your dealings with the card company. | If you want to park a credit card balance for the longest period, the Barclaycard Platinum card is offering 0% interest for 23 months on balance transfers (with a higher 2.8% transfer fee), and 0% on purchases made in the first three months. Savvy consumers can use their existing card to buy furniture, an expensive holiday, car or other big ticket item, then transfer the balance to a 0% card – allowing you to defer paying for it for almost up to two years, for almost nothing, provided you are scrupulous in your dealings with the card company. |
| Providers rely on a certain percentage of people not paying the balance off before the 0% deal runs out. Equally, be aware that if you miss a minimum payment, you automatically get dumped off the deal, and start accruing interest at normal rate - typically 18%. Make sure you set up a direct debit, and always pay off the sum in time. | Providers rely on a certain percentage of people not paying the balance off before the 0% deal runs out. Equally, be aware that if you miss a minimum payment, you automatically get dumped off the deal, and start accruing interest at normal rate - typically 18%. Make sure you set up a direct debit, and always pay off the sum in time. |
| Top credit cards | Top credit cards |
| Barclaycard | Barclaycard |
| NatWest | |
| Royal Bank of Scotland | |
| Powered by MoneySupermarket for the Guardian | Powered by MoneySupermarket for the Guardian |