Nationwide re-launches market-leading credit card
Nationwide has re-launched its market-leading 0% purchase credit card to new customers.
The Select credit card tops the tables for 0% purchase deals with a no interest period for the first 18 months.
The card also offers a 0% period on balance transfers for 17 months, with a 2.95% balance transfer fee.
However, to take advantage of these offers you need to have Nationwide's FlexAccount - which is free - as your main current account.
Cardholders also get the benefit of commission-free purchases when the card is used abroad and 0.5% cash back on all sterling purchases, except for cash advances.
"As we start the New Year, the Select credit card, with its market-leading 0% for 18 months purchases and 0.5% cashback offer, provides people with the ideal opportunity to take advantage of those bargains in the sales," says Graham Pilkington, Nationwide's director of banking.
"At the same time, by offering a competitive 17 months 0% balance transfer offer, the Select card also caters for those consumers who are looking to transfer pre-existing balances. So, the Select card offers something for everyone."
The interest rate on the credit card reverts to 12.9% APR once the introductory period ends, which is a pretty low rate in a market that averages a rate of 18.3% APR, according to Moneyfacts.
All in all this credit card offers a very attractive deal, it's only a shame it isn't available to the wider market.
But given that the FlexAccount is one of the better current accounts on the market making the switch could be a good idea if you would really utilise the credit card.
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.
Used by the holder to buy goods and services, credit cards also have a monthly or annual spending limit, which may be raised or lowered depending on the creditworthiness of the cardholder. But unlike charge cards, borrowers aren’t forced to pay the balance off in full every month and, as long as they make a stated minimum payment, can carry a balance from one month to the next, generating compound interest. As the issuing company is effectively giving you a short-term loan, most credit cards have variable and relatively high interest rates. Allowing the interest to compound for too long may result in dire financial straits.
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.
This is used to compare interest rates for borrowing. It is the total (or “gross”) interest you’ll pay over the life of a loan, including charges and fees. For credit cards where interest is charged at more frequent intervals, the APR includes a “compounding” effect (paying interest on interest). So for a credit card charging 2% interest a month (equating to 24% a year), the APR would actually be 26.82%.