Credit Cards & Loans
Consumers ‘missing a trick’ as balance transfer battle hots up
Consumers could be missing out on hundreds of pounds of savings by not switching credit card providers to get a better balance transfer deal.
Research by Gocompare.com found that 20% of Brits have never switched credit card providers and 65% of those who use their card on holiday have never transferred their credit card balance.
However, with new deals being launched every day and lower balance transfer fees being offered to customers, the comparison site said consumers may be missing a trick.
Gocompare.com’s credit card expert Matt Sanders said: “With credit card providers battling it out to offer the best deals, now is the perfect time to transfer your credit card debt.
“Switching credit cards is easy – the providers help you along the way and you can usually transfer balances within 60 days of applying for your card, so there is no need to make all of the transfers immediately.”
The latest provider to join the credit card clash is Nationwide, which has today launched its Select credit card.
This means that there are now eight cards on the market offering 27 and 26 month interest free balance transfer periods.
The research also found that the over 65s are the most loyal to their plastic providers with 86% admitting that they had never switched, while those aged between 24 and 34 are the most credit card savvy with nearly a fifth (18%) of them switching balances between cards at least once a year.
Consumers in the West Midlands are the least likely to switch with nearly three quarters (74%) saying they had never switched, compared to 58% of Londoners who’ve admitted to not moving credit card providers.
Longest balance transfer rates:
| NAME | BALANCE TRANSFER | PURCHASES | REPRESENTATIVE APR |
|---|---|---|---|
| Barclaycard platinum visa credit card | 0% for 27 months (2.99% fee) | 0% for 6 months | 18.9% (variable) |
| Tesco clubcard credit card | 0% for 27 months (3.15% fee) | 0% for 3 months |
16.9% (variable) |
Second longest balance transfer rate, but with low transfer fees and a long 0% purchase period:
| NAME | BALANCE TRANSFER | PURCHASES | REPRESENTATIVE APR |
|---|---|---|---|
| Nationwide Select credit card | 0% for 26 months (2.4% fee) | 0% for 12 months | 15.9% (variable) |
For added money transfer flexibility and long 0% balance transfer period:
| NAME | BALANCE TRANSFER | PURCHASES | REPRESENTATIVE APR |
|---|---|---|---|
| Fluid visa credit card | 0% for 26 months (2.89% fee) | 0% for 3 months | 18.9% (variable) |
Low balance transfer fee:
| NAME | BALANCE TRANSFER | PURCHASES | REPRESENTATIVE APR |
|---|---|---|---|
| Halifax mastercard credit card | 0% for 25 months (2% fee) | 0% for 3 months | 18.9% (variable) |
