The longest ever 0% balance transfer deal from Barclaycard could give new customers a whopping 27 months to pay off their existing debts without interest.
Barclaycard's new 27-month Balance Transfer Platinum card retains the group’s market-leading position for the longest 0% balance transfer offer, nudging ahead of RBS / NatWest and Virgin Money, which are all now encroaching with 26-month 0% offers.
Just six months ago, in November 2012, the longest balance transfer term was 23 months.
New applicants will need an excellent credit history to receive the full 0% on their existing balances, but those who are successful will have until the late summer of 2015 to pay off their existing debts without incurring further interest charges.
One drawback to the new Barclaycard offer is its hefty transfer fee of 3.50% (e.g. £35 per £1,000), which is higher than its competitors.
Virgin Money is charging 2.99%, while RBS and NatWest are charging 2.65%.
Customers able to pay off their debts more quickly could benefit from Barclaycard’s shorter balance transfer cards. The 25-month 0% balance transfer card currently commands a smaller transfer fee of 2.40%, while the 12-month card charges a 0.9% fee.
Contactless Problems
Another drawback concerns the contactless feature of newly issued cards, which is deemed by many to be too sensitive.
Contactless cards speed up transactions by allowing customers to make payments worth up to £20 without entering their PIN by passing their card within close proximity of a payment terminal There are 32.5 million contactless cards issued in the UK.
Contactless is growing in popularity but is not without its problems.
But recent reports have seen customers of Marks & Spencer and Transport for London stung by accidental charges made to their credit cards through the near-field communication technology.
M&S has defended its payment system, saying that it has undergone extensive testing and is fit for purpose.
Banks are currently implementing new measures to boost security on contactless cards, though they have not yet been willing to issue widespread replacements of older, vulnerable cards until they expire.
The UK Cards Association, which says the risks of double-payments can be reduced by taking contactless cards out of a wallet to make a payment.
New and existing customers might wish to consult this quick video guide to contactless technology.
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Keith McDonald
Which4U Editor
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