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Barclaycard cuts fee on leading balance transfer cards

Barclaycard cuts fee on leading balance transfer cards
Date of Publication: Wednesday, 03 September 2014 16:06

Barclaycard has reduced the transfer fee on its leading balance transfer cards in response to competition from rival lenders.

 

The lender has cut the fee on its 33-month 0% Platinum Balance Transfer card from 2.99% to 2.89%.

 

Customers switching their existing credit card balance could now save an extra pound for every £1,000 they transfer to this card.

 

Barclaycard applies an initial 3.50% fee before applying a partial refund to those who carry out the transfer within 60 days of opening the card.

 

The lender’s ‘silver’ product, the 32-month balance transfer card, sees a reduction in the transfer fee to 2.64%.

 

The move comes amid rising competition in the credit card market, with consumers able to benefit from cards with a shorter 0% balance transfer duration and a lower fee.

 

MBNA recently took the fight to Barclaycard by increasing its longest 0% balance transfer and money transfer period to 32 months whilst reducing its balance transfer fee to 2.69%.

 

Halifax, the Bank of Scotland, Lloyds Bank and Tesco Bank are also breathing down the neck of Barclaycard, with long 0% offers.

 

But the competition is proving effective for consumers, with applicants for Barclaycard’s 32-month and 33-month cards now facing a lower fee to transfer their cash.

 

For more about the benefits of balance transfer cards, check out our video guide below.

 

 

Keith McDonald

Which4U Editor

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Wednesday, 03 September 2014 16:06
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Top 5 Credit Cards

Card
Balance Transfers
Purchases
Typical APR (variable)
Apply
View Full Table >
N/A
N/A
18.9%
Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% (variable) your Representative APR will be 18.9% (variable).
0%
12 mths
0%
12 mths
15.9%
Representative Example: If you spend £1,200 at a purchase interest rate of 15.9% (variable) your Representative APR will be 15.9% (variable).

Advice

No foreign transaction fees on purchases and cash withdrawals abroad when made in the local currency. No cash withdrawal fees at home and abroad (interest is charged immediately on cash withdrawals and some independent ATM providers may charge a withdrawal fee).

Introductory Offer
Balance Transfer Rate: N/A
Balance Transfer Fee: N/A
Purchase Rate: N/A
Representative APR
Purchases: 18.9% p.a. (variable)
Representative Example: If you spend £1,200 at a purchase interest rate of 18.9% (variable) your Representative APR will be 18.9% (variable).
Annual Rates
Balance Transfers: 18.9% p.a. (variable)
Cash Advance: 18.9% p.a. (variable)
Annual Fee: N/A
Standard Features
Interest Free Days: Up to 56 days
On-Line Banking: Yes
Approval Criteria
  • You are at least 18 years of age;
  • You have had a permanent UK address for at least the last 3 years;
  • You do not have a history of bad credit (in other words, county court judgements or bankruptcy);
  • You have an income in excess of £7,500.

Advice

Collect 0.5% unlimited cashback on all purchases in pounds sterling. Also, get commission free card purchases abroad!! No balance transfer fee applies for the first 3 months of account opening, after which time it will revert to 2.4% (Minimum £5)

Introductory Offer
Balance Transfer Rate: 0% for 12 mths
Balance Transfer Fee: N/A
Purchase Rate: 0% for 12 mths
Representative APR
Purchases: 15.9% p.a. (variable)
Representative Example: If you spend £1,200 at a purchase interest rate of 15.9% (variable) your Representative APR will be 15.9% (variable).
Annual Rates
Balance Transfers: 15.9% p.a. (variable)
Cash Advance: 27.9% p.a. (variable)
Annual Fee: N/A
Standard Features
Credit Limit: £25,000
Interest Free Days: Up to 56 days
On-Line Banking: Yes
Cashback
Standard Cashback Rate: 0.50%
Approval Criteria
  • YOU MUST HAVE A NATIONWIDE CURRENT ACCOUNT IN ORDER TO APPLY FOR THIS CARD
  • You are at least 18 Years of Age
  • You have an Excellent Credit History
  • You are a permanent resident/citizen of the UK
  • You earn over £5,000 per year