Barclaycard have released their new 6-month 0% balance transfer car
which has generated a huge buzz after it was revealed that it comes with an unprecedentedly low transfer fee of 0%.
This latest deal has outshone all of its competitors, including the previous cheapest deal, proffered by Barclaycard themselves, which carried a transfer fee of 0.25%; the effective transfer fee you will pay is 0% of the entirety of the transferred balance.
Although an initial transfer fee of 1% will be applied to your bank balance, this will be reimbursed through the use of a credit which will reduce the 1% nominal fee to 0%. This credit will be put into operation within 2 working days from the moment your balance transfer is enacted.
The card is targeted at those with short term financial needs, who are seeking to rid themselves of a low, manageable amount of debt in an expedient, prudent manner. The low transfer fee is inviting, however prospective customers must be organised with regard to the timing of the payments. 6 months is a short period when confronting arrears, and failure to do so with a structured approach could lead to extra fees.
When the promotional 6-month period ends, card-holders are exposed to a staggering 19.99% APR. This condition proves beyond question that the cardís target audience are those with short-term debt problems, who believe they can successfully pay off their debt within the promotional period of 6 months. Others, who are riddled with monetary maladies ought to seek different deals with longer 0% APRs and larger transfer fees.
In order to keep your 0% rate, you must make your minimum payments on time, whether they be weekly, bi-weekly or monthly, and youíre required to stay within your credit limit. Fiscal responsibility is key when coping with short-term debt, and over-indulging in frivolous, financial pursuits will not buy you favour with Barclaycard. Again, if either of these conditions are contravened, the interest paid will go up to the purchase rate of 19.99%.
It is advised that upon entering into the balance transfer card scheme, regardless of the time allotted in the promotional period, you should set up a direct debit with Barclaycard so you ensure payments are made on time and the risk of losing your 0% deal is curtailed.
Pre-requisites for qualification:
ï You must transfer a balance to your Barclaycard Platinum card within 60 days of opening your Barclaycard Platinum card
ï Your Barclaycard is not in default at the time the credit is due
ï You have not given Barclaycard notice that you wish to withdraw or close the account at the time the credit is due
ï If you are a new customer applying online through the Barclaycard site
Other cards to consider
Although Barclaycard's new balance transfer card offers the lowest transfer fee possible, there are many other providers which are more than able to satiate people with long term and short term financial needs.
Sainsbury's ñ 0.5% transfer fee; 12 month 0% interest period.
Tesco Bank ñ 0.65% transfer fee; 12 month 0% interest period
For people who are seeking longer term deals:
Bank of Scotland/Lloyds Bank ñ 0.7% transfer fee; 15 month 0% interest period
Both deals include half a year of 0% interest on purchases as well. Both offer initial rates of 3% but these are later reduced to 0.7% providing card holders transfer their balance to accounts within 90 days of signing up.
And for those in severe financial hardship at present who are either unemployed, or do not see the light at the end of the debt-ridden tunnel any time soon, there are long term options on offer from Barclaycard and Halifax which are available at present.
In particular, Barclaycardís new 33 month Extended Platinum Balance Transfer card
and 32 month Platinum Balance transfer card
come with low fees of just 2.99% & 2.89%, and could be ideally suited to those who wish to proactively address their debt, but simply do not have the logistics and resources available to them at present to achieve this aim. In situations such as this, people can utilise the longer term cards in order to obtain the necessary breathing space they require to improve financially and begin making more meaningful steps to repaying their debt.
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