Barclaycard cuts credit card fees in June sale
There are now even more offers in the balance transfer market with Barclaycard's latest sale.
Barclaycard has knocked 15% off the balance transfer fee on several of its credit cards, it confirmed today.
The price cut is part of its June sale and the card provider has also made several other changes including increasing the 0% purchase period on the Initial credit card to five months, from three.
The discounts last throughout the month of June and clearly cement the provider's place at the top of the credit card tables.
Several cards in the Barclaycard range are included in the June sale.
The market-leader, which offers 0% interest for 27 months, now has a reduced fee of 2.98% which means you would pay £59.60 to move over a debt of £2,000.
Next in line is the 25-month card which now has a fee of 2.04%, so £40.80 to transfer £2,000. The yearly fee for the Cashback High 5 card has also been waived for those who sign up this month.
Below you can see exactly what's changed across the range in the June sale.
|Barclaycard Platinum Low Fee Balance Transfer Credit Card||1.28%||£25.60|
The balance transfer market
In the past month credit card providers have been pulling out all the stops to make sure their balance transfer cards are beating the competition.
Barclaycard has successfully remained on top consistently and now has the longest ever deal at 27 months. After today's reductions it also offers some of the cheapest cards which have a lower 0% period.
But the best cards on offer from Barclaycard won't be available to everyone. They require a squeaky clean credit score and you can't transfer over an existing Barclaycard balance.
The best alternatives
If you're not eligible for one of the Barclaycard cards, there are other options around with very similar offers.
NatWest and RBS, for example, have cards with 0% balance transfer periods for 26 months and a fee of 2.65%.
Virgin Money also has a 26-month card with a slightly higher fee of 2.99% and the offering from Halifax is 25 months with a fee of 2.5%.
Our comparison tables give a full view, but you can also find out more in our article - The best non-Barclaycard balance transfer credit cards.
How to pick the right credit card
Balance transfer cards won't suit everyone and they only work if you're paying off a credit card debt with a high interest rate and looking for a breather from the payments. Depending on how much debt you have, you can either go for a card with a long 0% period, or one with a low fee.
Unfortunately those with a low fee, such as the Platinum Balance Transfer Card from Lloyds which has a 1% fee, also have much lower 0% period and this one is only 15 months.
When you take out one of these cards, the main aim should be to clear the debt in the 0% period. Failure to do this will mean you'll have to start paying interest when the 0% period ends. As these cards generally have a higher interest rate than most credit cards, these payments can negate any savings you've made in the 0% period.
Missing payments is also dangerous as this can cut the 0% period short, result in a fine or even leave a permanent mark on your credit score.