The AA has launched the longest-ever fee-free 0% balance transfer card, a new 0% fee-free balance transfer card, meaning borrowers can avoid paying interest or fees on an existing credit card debt for a full two years.
The card previously offered a fee-free 22-month 0% interest period, but this has been extended to 24 months for new customers who transfer a balance of at least £500.
Charlotte Nelson of Moneyfacts.co.uk says: “With no balance transfer fee this is the longest fee free balance transfer fee Moneyfacts.co.uk has seen.”
“Whilst there may be longer interest-free deals on the market, this is a great choice for any borrower looking to consolidate their debt cheaply; however borrowers must ensure that the balance is paid off in full before the deal expires to ensure interest is not charged.”
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As well as the balance transfer feature, the card also offers interest free purchases for the first three months.
Interest is charged at 19.9% APR representative, which will kick in after the 0% period, or if you miss a payment or go over your credit limit.
The AA says all successful applications will get the full 24-month 0% period, though some customers will be offered a higher interest rate than the advertised APR.
Most credit card companies only offer the advertised promotional period or interest rate (APR) to 51% of people who take out the card, offering lower interest-free periods and higher interest rates to the rest.
This isn’t the longest 0% deal on the market – Sainsbury’s Bank and Virgin Money both offer 40-month 0% deals, but both charge balance transfer fees.
Shifting a £3,000 balance to Sainsbury’s Bank’s Long Balance Transfer Card costs £86.70 (2.89%), while Virgin Money charges £76.20 (2.54%).
The AA card will charge nothing to do this, though you will have less time to clear your debt.