Struggling to pay-off existing borrowing? Here are the best balance transfer credit cards that could make you debt-free quicker.
The premise is simple; pay off old debts using a new credit card with lower fees. Experts suggest that these credit cards could provide the perfect solution for those who can’t seem to get on top of money borrowed.
Halifax
This balance transfer offer is exclusively available online and boasts up to 43 months at 0%. Although the bank have ultimate discretion on how many months you are offered, 51% of applicants so far have been granted the full term.
Customers must do the balance transfer within the first 90 days in order to get the 0% rate and reduced fee. After the 0% period ends, customers with strong credit scores will get 18.9% interest but those with poor credit scores may get 21.9% or even 27.9%.
It is important to mention that cash withdrawals on this credit card are not recommended; the rates are high and the withdrawals will hit your credit file.
MBNA
Also offering 43 months at 0%, the MBNA card is deemed one of the best balance transfer credit cards. Similarly, the bank will provide varying offers dependant on the applicant’s credit history.
Customers are expected to make the balance transfer within 60 days and once the deal ends, you pay 20.9% per year on any remaining balance transfer debt.
It must be noted that those who already have an MBNA or Nuba card, are not eligible to transfer balance to this card. Similar to advice regarding the Halifax card, users are advised against making cash withdrawals from this account.
Sainsbury’s Bank
Unlike the previous two cards, the Sainsbury’s Bank guarantees to give you the full 42 months if you’re accepted. Although charged an initial fee of 4%, the bank returns 1.7%, effectively resulting in a 2.3% fee.
Subsequent to the 0% period, the interest rate is 18.9%, but those suffering with poor credit scores may be charged either 21.9% or 28.9%. Failure to pay at least the minimum monthly repayment will result in customers losing the 0% deal.
Again, cash withdrawals are strongly discouraged because the rate isn’t cheap and withdrawals will impact your credit file.
Offering bonus Nectar point and a lower fee than the others, the Sainsbury’s Bank card may be the wisest choice of these best balance transfer credit cards.