The best rates available on balance transfer credit cards can vary by as much as ten per cent Moneyfacts has said, warning card users to choose their deal carefully.
For card users tired of chasing the next zero per cent deal, the balance transfer market can be a mixed bag, the report said.
Balance transfer cards offering a lifetime best rate are increasingly popular, but as with all credit card deals have the potential to be expensive.
One of the best on the market is the recently launched Barclaycard FlexiRate, said Andy Britchford of Moneyfacts, but even this is not without some catches.
“The new deal tops the best buy charts offering 4.9 per cent per annum until the balance is cleared for any balances under £5,000,” he said.
“But beware, as with many cards, you will be required to pay a balance transfer fee, in this case 2.50 per cent. So on a balance of £5,000 this would cost you £125.
“However, with interest rates predicted by some, to rise later this year, it may well be worth paying the fee in the knowledge that you won’t be charged any more than 4.9 per cent until your card balance is completely cleared.”
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