Need a 0% credit card? Why now's the time to apply
If you need to pay off some credit card debt then why not take advantage of the lengthiest 0% balance transfer periods ever?
The Halifax 40-month Balance Transfer card was due to be withdrawn but the application period has now been extended until 7th March. What's more the balance transfer fee you'll pay has been slashed to 2.85%. And Tesco Bank has now launched its own 40-month credit card with a slightly cheaper fee than Halifax.
0% balance transfer cards with long interest-free periods
Let's take a look at the cards with the longest 0% periods.
Credit card | 0% period on balance transfers | Balance transfer fee | Cost of transferring £2,000 balance | Representative APR |
40 months | 2.69% | £53.80 | 18.9% | |
40 months | 2.85%* | £57 | 18.9% | |
39 months | 2.89% | £57.80 | 18.9% | |
39 months | 2.98% | £59.60 | 18.9% | |
38 months | 2.65% | £53 | 18.9% | |
38 months | 2.65% | £53 | 18.9% |
0% cards with low balance transfer fees
However, if you're willing to go for a card with a shorter interest-free period, you can pay a much lower fee or even no fee at all, as the table below shows.
Credit card | 0% period on balance transfers | Balance transfer fee | Cost of transferring £2,000 balance | Representative APR |
23 months | None | £0 | 18.9% | |
28 months | 0.59% | £11.80 | 18.9% | |
32 months | 0.89% | £17.80 | 18.9% |
Just make sure you weigh up how long you'll need to pay off your debts. It's better to have longer at 0% interest and pay a slightly larger fee than run out of time and end up paying interest.
Average credit rating
Sadly, some people won't be able to get any of the cards we've highlighted in this article. That's because the credit card companies are only willing to give these cards to people with good credit ratings.
Other options
If you want even longer to get back into the black, you could apply for a personal loan and use the money you've borrowed to pay off your credit card debt. Right now, the top personal loans are charging as little as 3.3% in interest.
0% is best
But if you can get one of the top 0% cards, go for one of them. Just make sure you pay off your minimum monthly repayment promptly every time. Otherwise your credit card provider will use your late payment as an excuse to withdraw your 0% deal.
