Barclaycard launches 20 month balance transfer card
Barclaycard has launched a record balance transfer card at 0% for 20 months.
The deal is the longest balance transfer available, beating its nearest competitors Virgin Money and MBNA by two months.
The Barclaycard Platinum card has a 3.2% balance transfer fee and 0% interest on new purchases for three months. After 20 months the rate reverts to 17.5%.
Kevin Mountford, head of banking and credit cards at price comparison site moneysupermarket.com, says the move is surprising.
"After a wave of regulatory change it is surprising to see that the boundaries continue to be pushed in terms of 0% intro offers," he says. "On the face of it, several players battling for top spot should be good news for consumers.
"In terms of managing household budgets this should help anyone looking to consolidate outstanding debt but it is likely that the providers will become increasingly selective so it is critical that we protect our credit profiles as best we can."
Chris Griffiths, head of credit cards at confused.com, says customers need to be careful to stay within the terms and conditions of the deal to make the most out of the offer.
"Make sure you make at least the minimum payment on time each month, setting up a direct debit can help with this," he says. "It's also important that customers remain within their credit limit, and check the rates carefully if they are planning to make additional purchases as they may be able to get a lower rate on an alternative card."
Moving money from one account to another, whether switching bank accounts or more likely transferring the outstanding balance on your credit card to another card that charges a lower – or 0% – rate of interest. Some card providers may charge a transfer fee that can be a percentage of the balance transferred.