Browsing "Credit Cards"
Barclaycard has increased it’s 0% balance transfer deal today (16 March 2011) to 20 months, making it by far the longest period ever offered by any credit card provider.
This is the second time Barclaycard has made an aggressive move to stay ahead of competition in the last few months, after it pushed the 0% balance transfer period on the Barclaycard Platinum credit card from 16 months to 18 months, marking the longest ever 0% duration.
Today, Virgin Money and MBNA announced they were boosting their balance transfer deals up to 18 months in an effort keep up with competition – a move which has been upstaged by the news from Barclaycard.
This is great news for anyone that is looking to clear debt without further adding to it through interest charges.
For example, if you owed £3,000 and could afford to clear this in 20 months you would only pay the one off 2.80% transfer fee – £84, then your interest payment would effectively be frozen for a full 20 months, allowing you to clear the debt without any further interest charges.
In this case you could set up a payment scheme of £154.20 per month and be debt free before the 0% period expires.
The move by Barclaycard is likely to trigger a rise in 0% deals across the board as pressure rises for other credit card providers.
Barclaycard has increased its 0% balance transfer offer by another month, marking another record for interest free transfer periods.
The credit card provider only recently boosted its 0% period from 16 months to 17 months which was the longest ever 0% period offered.
But Barclaycard has once again stepped up the competetion by offering an impressive 18 months 0% on balance transfers.
The deal also included a £20 discount on the 2.9% transfer fee, which has been extended until the end of February for those that transfer at least £3,000 onto the card.
This offer is available on transfers made within 60 days of opening the account. The amount transferred must not exceed 90% of the available credit on the account.
The balance transfer feature is perfect for anyone that currently pays interest on their debts. Card holders should ideally transfer their balances across and set up a repayment plan by breaking the total amount owed by the number of interest free months.
For example, if you currently owe £1,500 on a credit card and pay interest for the service, you could transfer the balance for a 2.9% fee (£43.50) which would be added to your balance, then divide the total by 18 months – allowing you to pay off £85.75 each month and be debt free before the interest free period is over.
The Barclaycard Platinum also comes with interest free purchases for 3 months, which means you can get up to 3 months to pay back any purchases made from the account opening date.
Credit cards offer consumers several features that can be used to their advantage, and if used properly offer a completely free service.
Credit cards have always had a bad reputation as an easy way to fuel debt. However, providers have been working hard to shake off this stigma, offering features that are designed to help consumers to manage their spending effectively and in some cases even help to reduce their debt in the cheapest possible way.
These days most credit card deals offer a main feature that will attract a specific customer type depending on what they require.
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Anyone that has been in debt can appreciate the difficulty of getting out of debt, especially when they are continuously fighting a losing battle against interest charges.
However, there are more efficient techniques that can be used to reduce credit card debts more affordably, using methods that at first may not seem like the obvious choice – another credit card.Nowadays, every credit card serves a purpose, each offering features that are designed to help different consumer types, so whether you make use of interest free cards to manage your spending/debt, or would prefer to earn rewards for your spending, there’s a credit card to match.
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Credit cards have long been associated with debt, providing ‘vulnerable consumers’ with a tool that can potentially fuel debt.
However, things have changed, and nowadays credit cards actually provide the means to clear your debts efficiently without adding to them through high interest rates.
Almost all credit cards come with special features these days with specific consumer groups in mind, from airmiles or cashback to offer long 0% purchases durations and indeed 0% balance transfer periods.
Your financial situation will influence the type of credit card that is most suited to you, for example, you wouldn’t go for a credit card awarding airmiles if you were looking to transfer a balance simply to clear your debts.
The good news is that the credit card market is booming with competition, so the features offered tend to get better and better.
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MBNA are making free McAfee security software available to anyone that holds an online credit card account with MBNA to help keep customers safe from Internet fraudsters.
The Bank of America owned subsidiary is offering a complimentary year-long subscription of the comprehensive McAfee Online Banking Security Suite, worth around £60, to all its online registered customers. Read More »