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By Reno Charlton
News Editor, 3 April 2008
0% Balance Transfer
Best Buys
» Virgin credit card - 0% balance transfers for months (% fee)
» Mint credit card - 0% balance transfers until (% fee),
» Barclaycard Platinum credit card - 0% balance transfers for months (% fee)
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PAYING off balances on high interest credit cards can prove costly and frustrating, as many credit card holders have already discovered.
This is why an increasing number of people have been taking advantage of offers on 0% balance transfer credit cards over recent years, whereby they are able to transfer the balances from high interest credit cards onto a single 0% card, and then enjoy a period of interest free credit within which to clear the total transferred balance.
£6.68 billion to be transferred to 0% deals
According to a recent report many people are planning to transfer their balances onto a 0% balance transfer credit card over the coming months, with around 4.3 million Brits set to transfer a total of £6.68 billion from high interest credit cards onto an interest free balance transfers credit card in order to try and avoid paying any further interest on their credit card debts.
The research into 0% balance transfer cards was carried out by Sainsbury's Finance, and an official from Sainsbury's said that the popularity of 0% balance transfer credit cards did not surprise him. He said: "Our research shows that there are an estimated five million people with outstanding balances who are not only incurring interest but also admit that it may take them longer than one month to clear their spend."
This research is clearly more than just dubious statistics, as it's been quite markedly backed up by the recent move from Sainsbury's to lengthen its credit card's 0% balance transfer offer from 10 months to the now 'consumer minimum choice' of 12 months.
Remember to shop around
Of course there are a few pitfalls that people need to look out for when it comes to 0% balance transfer credit cards.
Firstly, there has been a significant drop in the number of card providers that offer capped transfer fees on 0% balance transfer credit card deals, so it is important for people to do their research and find a card that is not going to charge the earth in transfer fees.
Secondly, tighter credit conditions mean that lenders are rejecting an increased level of applications, which people need to bear in mind.
Lyndsey Burton from Credit Card Comparison Online stated: "While lending criteria is becoming stricter, there are still plenty of credit card issuers jostling for positions in the 0% balance transfer best buy stakes - so there's no reason to jump at the first offer presented to you. Shop around and make sure you're getting a good deal, 0% balance transfers now last up to 15 months - with the average tiltering just over the 12-month mark."
The best buy 0% balance transfer deal is still held by the Virgin Money credit card, with it's 0% for 15 month offer. The card is issued by MBNA so anyone thinking of applying should make sure their current balance is not owed to MBNA.
0% balance transfer credit card deals are by far from declining, with most of main credit card issuers offering deals of 12 months or more.
Remember to shop around and compare 0% balance transfer credit cards as several issuers including Virgin Money (MBNA), Royal Bank of Scotland Group, Barclaycard, Capital One and Tesco Finance all offer deals of 13 to 15 months in length, and those extra few months can make a real difference.
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