Major lenders are challenging Barclaycard's dominance in the balance transfer credit card market, with Halifax becoming the latest to improve its best 0% offer to 28 months.
Barclaycard has dominated the sector in recent years, fastidiously maintaining its market-leading position for the longest balance transfer duration.
The lender recently responded to competition from Tesco by extending its 0% offer twice in one week to a staggering 30 months (read more).
But major lenders are not allowing Barclaycard to rest on its laurels, with a host of competitive 28-month offers.
On Monday, Halifax joined RBS, NatWest and Tesco in offering 28 months at 0% on balance transfers. The updated card (previously 27 months) offers 0% on balances up to £3,000 transferred within the first 90 days.
Its balance transfer fee of 2.45% (initially 3%, then part-refunded) compares well to other cards of this nature. The RBS and NatWest Platinum cards charge a fee of 2.99%, while the Tesco Balance Transfer Clubcard applies a 2.9% fee.
The Halifax card also offers 0% on purchases for six months, which matches the offer available through RBS and NatWest and beats the Tesco Clubcard by three months.
The card competes with Barclaycard’s second longest 0% card, which was extended to 28 months when the longest offer became 30 months. This also offers a lower fee of 2.49% (compared to 2.90% for the 30-month card), and six months at 0% on purchases.
Halifax 28 Month Balance Transfer Credit Card
Details
- 0% for up to the first 28 months on balances transferred in the first 90 days.
- Balance transfer fee of 2.45% - initially 3% with a part-refund.
- 0% on purchases for the opening 6 months.
- Manage the card online using Online Banking and Mobile Banking.
How it Compares
| Halifax 28 Month BT |
Tesco BT Clubcard |
RBS/NatWest Platinum |
|
| Transfer Fee | 2.45% | 2.90% | 2.99% |
| Cost per £1K | £24.50 | £29 | £29.90 |
| 0% Purchases | 6 months | 3 months | 6 months |
| Representative APR | 18.9% | 18.9% | 18.9% |
Alternatives
Looking for a lower transfer fee?
Why not consider the Bank of Scotland Platinum card, which offers 24 months at 0% on balance transfers, for a fee of just 1.50%.
Though you’ll have less time at 0% to reduce your existing debts, transferring a balance of £3,000 to this card would cost just £45, compared to around £90 for RBS / NatWest.
Looking for an all-round card?
The Halifax All-in-One card is a splendid all-rounder. The card offers 0% on balance transfers and purchases for 15 months, with a transfer fee of just 0.8%.
The card is one of the most competitive in the market for purchases, whilst allowing customers ample opportunity to reduce their existing debts without incurring additional interest.
Looking for a low rate card to keep your interest costs down?
If you regularly carry a balance and would prefer to avoid the long-term balance transfer route, you might consider a low-rate card, such as Sainsbury’s Bank (7.8%) or Barclaycard Simplicity (7.9%).
These cards lack in frills, but with a rate of less than half the current average (c. 18%), they are a useful money-saving option once the initial offer on your existing card has expired.
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