Halifax have introduced a competitive fee-free credit card on to the market, giving cardholders the ability to pay off their debt for free for up to sixteen months. Further to this, the deal comes with a 0% interest free promotion for new purchases for the first six months.
This credit card deal marks a transition away from the original tactic of presenting customers with the longest interest free deal- a title currently held by Barclaycard who give their consumer 36 months interest free. Now providers are attempting to attract new customers by offering facilities that will reduce the cost of transferring debt.
The 0% fee that Halifax are offering pertains to balance transfers that take place within the first 90 days of opening the account with them. If the customer was to make a transfer beyond that first 90 days, there is a standard 3% charge that operates.
Halifax refer to the example of a customer making a standard balance transfer of £2,000 from a credit card facility with an 18.9% interest rate. If they were to move on to their new facility, the customer would save £435.99 across sixteen months.
Halifax have stated that ìthe majorityî of the customers that they take on will be given the 0% for sixteen month deal. Despite this, it is necessary to understand that credit card suppliers are only compelled to offer the promotion they advertise to 51% of applicants that are successful.
For those consumers that are not accepted on the sixteen month deal but do qualify for the credit card, the 0% interest for balance transfers is given on a much shorter time period of just nine months. After that period, the interest will rise exorbitantly to a rate of either 21.9% or 25.9% depending on the personal situation of the customer.
A representative of Halifax Credit Cards, Jon Roberts, stated: ìBy launching this market leading balance transfer credit card, Halifax is demonstrating its continued commitment to providing extra value and choice to customers.î
He went on to comment: ìThe ëHalifax 16 Month Balance Transfer Cardí is designed to provide choice to customers who are looking for one card that enables them to avoid charges when transferring balances and making new purchases. This gives them the opportunity to restructure their borrowing in a more cost-effective way.î
There are a number of other deals on the market to consider before going with Halifax. One of the lengthiest deal available on the market for those consumers looking to move their debt and purchase items without incurring extra costs is offered by Santander on their ë123 Credit Cardí. Customers on this contract have a twenty-three month interest free period on balance transfers and purchased items as well as 3% cashback.
Additionally, there is no fee for balance transfers. However, consumers eyeing such a deal must consider the significant £24 card charge per annum, though they can evade the charge for the first year by opening a ë123 Current Accountí.
Another option to consider is the ëSantander Credit Cardí which comes with no fees but a less competitive 0% deal on purchases and balance transfers in the first fifteen months of joining.
Beyond Santander, there is the ëClubcard Credit Card No Feeí with Tesco which offers a Clubcard reward scheme on purchases and 0% interest for purchases and balance transfers for a period of twelve months. Subsequent to that period, there is an 18.9% interest charge.
As mentioned earlier, Barclaycard offer the best deal for those needing an extended period to pay off debt they have accumulated. The ëPlatinum Extended Balance Transfer Cardí offers their customers a huge thirty six month period before being charged.