Credit Cards Balance Transfer
Millions of Britons find that Christmas spending really puts the pressure on their finances. In some cases, spending on a credit card will lower your overall bill such as with the Amex Platinum. This will give you 5% cash back on your first ?2,500 spend within the first 3 months, for example. What most people need is a balance transfer that lets them pay down the debt comfortably without attracting interest. Today we will be looking at the top three UK credit cards that allow you to do this. The representative APRs are based on an assumed credit limit of ?1,200 and are only offered to 51% of customers.
#3. Lowest APR and Transfer Rate: MBNA Everyday Card
Of all the cards on offer, the MBNA Everyday card offers the lowest handling fee on balance transfers of just 1.5%. This gives you 0% on balance transfers for 18 months from the date you open the account provided you transfer your balance within the first two months. The only other credit card that offers such as low handling fee is the Lloyds Bank Platinum card which gives you 0% balance transfers for 24 months.
Transferring ?1,200 to an MBNA account would cost ?18, leaving you with a manageable ?67.6 monthly payment to clear the debt in 18 months without attracting interest. A key benefit for the MBNA Everyday card is that it offers 0% on card purchases for eight months from the date you opened your account and a low 13.9% p.a. variable on card purchases thereafter. This is much lower than the 17.95% p.a. on offer from Lloyds and makes the MBNA a good choice for spending over the longer term.
#2. Longest Balance Transfer: Barclaycard Platinum Credit Card with Extended Balance Transfer
If having the longest balance transfer period is a must for you, this card gives you an unbeatable 29 months to pay down your debt. Initially they will charge a 3.5% handling fee but then reduce this to 2.79% by a refund as long as you meet the minimum payment on time each month. This card gives you 0% interest on balance transfers for longer than any other card on the market.
If spreading out your debt into the lowest possible monthly payments is essential, the Barclaycard is the best option for you. Transferring ?1,200 of debt to this account will cost ?42 initially but you will be refunded ?8.52 provided you made minimum payments. You could then spread the debt of ?1,233.48 over 29 months leaving you with a low monthly payment of ?42.50. This card also offers 0% interest on purchases for six months from account opening but card purchases attract an 18.9% APR thereafter.
#1. Lowest Handling Fee and Longest Transfer Rate: Barclaycard Platinum
There are many cards on the market that offer 0% on balance transfer for 28 months including Barclaycard, NatWest, Tesco, RBS and the Halifax. While the MBNA Platinum gives you 0% on balance transfers for 27 months for just a 2.39% handling fee, Barclaycard Platinum gives you 28 months for the same fee. This is the lowest handling fee for any balance transfer of that duration.
Assuming a ?1,200 transfer, you will be charged a ?28.68 handling fee and have 28 months to clear the ?1,228.68 debt. This will give you a manageable monthly payment of ?43.88. The only word of caution is that this low fee is subject to you making the minimum monthly payments on time. Should you be unable to do this, the handling fee will revert to 4% meaning the amount you will pay overall will increase.