New credit cards offer two years 0% debt busting for free
Halifax and Tesco have launched two-year 0% balance transfer credit cards with no balance transfer fees, making them the joint longest fee-free offer on the market right now along with the AA Balance Transfer Credit Card.
If you are certain that you can clear your debt within that two-year window, then any of these balance transfer credit cards are worth going for.
However, if you have a more sizeable debt that'll take you longer to clear and you're worried you'll forget to switch again in two years, then you might want to consider a card that offers a far longer 0% period but charges a fee.
Fee versus 0% offer
Working out which card is right for you can be tricky, particularly as providers do not follow logical rules when creating balance transfer products. Paying a higher fee doesn't automatically mean you get the best interest-free period and vice versa.
Having said that, balance transfer fees have been tumbling in recent months so you can enjoy the best of both worlds if you shop around.
Cheapest 0% balance transfers cards
Here are the best cards around at the moment that are either fee-free or charge a small amount on 0% balance transfers. The table is ordered by the cheapest cards, in terms of balance transfer fee, and then length of interest-free period.
Credit card | 0% period on balance transfers | Balance transfer fee | Fee paid on £2,000 transfer | Representative APR after 0% period ends |
Tesco Bank Clubcard 24 Month No Balance Transfer Fee Credit Card | 24 months | None | £0 | 18.9% |
24 months | None | £0 | 18.9% | |
24 months | None | £0 | 19.9% | |
32 months | 0.72% | £14.40 | 18.9% | |
32 months | 0.75% | £15 | 18.9% | |
34 months | 1.49% | £29.80 | 18.9% |
As you can see, Tesco, Halifax and the AA are leading the way with their fee-free 24-month offerings, but Barclaycard, HSBC and Virgin aren't far behind with longer deals which still have a low fee.
If you think you'll need even longer, there are 0% balance transfer credit cards offering up to 40 months interest free. Just note that these tend to charge far higher balance transfer fees, usually between 2.5% and 3%.
It's worth pointing out that you'll need a good credit rating to qualify for most of these cards.
If you keep being turned down, don't carry on applying as you'll hurt your credit rating. Instead, try to make some cutbacks if you can and pay off more of your debts. Be sure to keep up your repayments and your credit rating will, in time, improve.
Low-rate alternatives
If you don't think you can keep up on moving your debt around, then a lifetime low-rate balance transfer credit card might suit you better.
Instead of remaining interest-free for a certain amount of time, these credit cards have a low APR applied to the balance from the start of the transfer that lasts as long as you take to pay it off. Some of the best cards in this category don't charge a transfer fee and those that do keep it very low.
Compare 0% balance transfer credit cards
