Lloyds launches its longest ever 0% interest balance transfer card: our verdict
The Platinum Credit Card offers 0% interest on balance transfers over a 40 month period, plus 0% interest on purchases made during the first six months of opening an account.
As you’d expect, it comes with a balance transfer fee, which is 3%, but if you make a balance transfer within 90 days of opening the account, Lloyds will refund 0.15%, so the fee effectively drops to 2.85%.
In order to be eligible, you need to transfer a minimum of £100.
It is available to both new and existing customers who don’t already hold two Lloyds Bank credit cards.
Existing customers can transfer balances from a non-Lloyds credit card to the Platinum Credit Card but can’t transfer a balance from an existing Lloyds credit card.
The 40 month balance transfer comes with a representative rate of 18.9% APR (variable) though some who apply for the card will receive a higher APR of 21.9% (variable). For purchases, after the initial six month promotional period, the rate is 18.94%.
Lloyds’ offering joins the ranks of the Halifax and MBNA which also have a 40 month 0% interest on balance transfers. Only one other provider, Virgin, offers a longer interest-free period – 41 months.
So how does the Lloyds Platinum card stack up? Here are the current market-leading offerings:
- Virgin: 41 month 0% interest on balance transfers and money transfers, plus three months at 0% for purchases, but it comes with a one-off transfer fee of 4% (min. £3), 20.9% APR (variable).
- MBNA: 40 month 0% interest on balance transfers with 2.79% fee (if made within 60 days), 18.9% APR (variable).
- Halifax: 40 month 0% interest on balance transfers with effective 2.46% fee (initial 3% fee, but 0.54% refunded if transfer made within 90 days), 18.9% APR (variable).
- Halifax: 24 month 0% interest on balance transfers and 0% interest on purchases made in the first six months. It comes with zero fees but has an 18.9% APR (variable).
In comparison to the two other 40 month 0% interest balance transfer cards, Lloyds’ fee, even with the 0.15% refund, is still slightly higher than Halifax and MBNA.
For example, if you have existing debt of £1,000, shifting it to Lloyds would cost £28.50, whereas at Halifax it would cost you £24.60, while at MBNA, you’d pay £27.90.
Though the Halifax 24 month 0% interest offers a reduced balance transfer period, there are zero fees, so it’s best to weigh up whether you can clear your debt sooner than the 40 month period.