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Spotlight on... Barclaycard's latest balance transfer card

The Momentum UK Team 15 April 2014

Barclaycard have launched a huge 31 month 0% interest period and £20 cashback on balance transfers above £2,000 to fend off competition in a crowded balance transfer market. Sound appealing? Here are some more details:

Quick guide to balance transfer credit cards

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A potentially useful tool for managing your credit card debt, balance transfer credit cards simply allow you to move an outstanding balance to another card, typically with a 0% introductory period. Most people look for a balance transfer card that offers a lower rate of interest than they are currently being charged.

It’s worth bearing in mind that some cards may have a limit on the balance that can be transferred, and some may charge higher levels of interest on any further purchases. There may also be charges for transferring your balance (for the Barclaycard Platinum card, this is 2.99%). As always, it could pay to check the terms and conditions before signing up. Find out more and compare balance transfer cards.

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What’s on offer?

A fee of 3.5% will be applied, then reduced to 2.99% by a refund (Barclaycard Platinum Credit Card with Extended Balance Transfer promises 0% interest on balance transfers for 31 months (or 2 years, 7 months) from account opening (subject to a 2.99% handling fee).

An additional £20 fee refund on balance transfers over £2,000 (subject to terms and conditions) is also on offer, alongside 0% interest on purchases made in the first six months from the account opening.

Once you’ve finished the 31 month interest free period, the card’s representative APR will take effect at 18.9% (variable).

Who might it suit?

The exceptionally long interest free period might be worth thinking about if you’re paying a high interest rate on a large credit card, and looking for a longer period over which to pay it off. Applicants need to be over 21, with a good credit rating and an annual income over £20k to be eligible. If you’re already a Barclaycard customer, bear in mind that you will not be able to take advantage of the offer - it is designed to attract new customers.

It’s also perhaps worth noting that the 18.9% APR at the end of the interest free 31 months is above the average UK credit card APR (17.05%). The fees charged are also at the top end of what’s on the market - there may be 0% accounts for shorter terms with less than a 2.99% handling fee if you don’t need that long to pay it off.

Find out more by visiting Barclaycard’s product pages, including full terms and conditions and how to apply. You can also compare other credit card deals and reward cards with our handy comparison table.

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