September 5,
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Try this scenario; your fantastic 0% credit card deal is at an end so you need to transfer your balance to another card that offers 0% on balance transfers. Seems straight forward so far, let us assume you have £3000 to transfer from card A to card B. Card B has a great 0% balance transfer deal, super, you transfer your £3000.
A month later you receive your account statement and you see a fee has been added to your account. £50 has been added to your account! If you had read the small print you would have found the dreaded words…balance transfer fee.
More and more credit card companies are adding a balance transfer fee to their 0% deals. This fee can range from 2 to 3% of the balance you plan to transfer. Most do cap this fee at £50; however, some have an open-ended fee that could end up costing you more.
The reason why companies have added this fee, is to try and claw back some of the £800 million in costs, they have incurred in the last year by offering all these marvellous 0% balance transfer deals.
Let’s be clear about this, you are still saving bucket loads of interest by transferring your outstanding balance to another credit card. Just try and be smarter and read the small print and do your calculation. With the extra fee (normally £50 max) is it still worthwhile transferring your balance?
April 6, 2006 Just Added
There are now no available without a balance transfer fee that extend to more than six months with their introductory offer. Even worse is that more and more credit card companies are increasing their fees and removing their maximum fee. Be aware.
There are a number of that do not charge this balance transfer fee and I have listed some of them with the best offers:
Credit
Card |
0%
Balance Transfer Term |
Comments |
6
months |
Includes
0% on all purchases for 6 months and free
purchase protection |
|
3.9%
lifteime offer |
Double &MORE
points for 6 months from the date of
account opening on all purchases |
|
5
months |
Receive
a booklet of money-saving vouchers
for use in Sainsbury's |
|
6
months |
Be
careful with the standard APR of 28.8%
! |
|
6
months |
Includes
0% on all purchases for 6 months |
**Please be aware that Marks & Spencer have changed their terms & conditions to state that they may charge a balance transfer fee. We have been told by Marks & Spencer directly that they will not charge a fee. Please check with them first.
As with no balance transfer fee are becoming few and far between, we have decided to include a selection of that do charge a balance transfer fee, however, this fee is capped. The fee cap is usually fixed at £49/£50.
Credit
Card |
0%
Balance Transfer Term |
Balance
Transfer Fee |
Comments |
12
months |
2.5% (Max £50) |
Includes
0% on all purchases for 12 months and
a low APR of 12.9% |
|
9
months |
2%
(Max £50) |
Up
to 56 days interest free and a standard
APR of 14.9% |
|
12
months |
2%
(Max £50) |
Includes
0% on all purchases for 5 months |
|
9
months |
2%
(Max £49) |
Also
comes with 0% on all purchases for
9 months. Existing NatWest account
holders are not charged a balance transfer
fee. |
|
6
months |
2%
(Max £50) |
Includes
0% on all purchases for 6 months. Low
standard APR of 13.9%. Must earn min.
£25000 per year to qualify |
|
7
months |
2%
(Max £50) |
Includes
0% on all purchases for 7 months and
a low APR of 14.9% |
|
9
months |
2%
(Max £50) |
Receive
0% on all purchases for 6 months as
well as a reward point for every £10
spent |
|
9
months |
2%
(Max £49) |
Also
comes with 0% on all purchases for
9 months. |
|
6
months |
2%
(Max £50) |
Receive
a free return flight with your first
purchase |
|
8
months |
2%
(Max £50) |
Includes
0% on all purchases for 8 months. Low
standard APR of 12.9%. |
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