The credit card balance transfer war has finally caught up with credit card issuers in the UK.
Not to be outdone by their counterparts in the US, Barclaycard led the assault in UK with a 0% interest on balance transfers for 20 months deal on their Barclaycard Platinum Credit Card.
This has somehow created a storm in the marketplace. Not to be outclassed by their competitors, MBNA Europe Bank introduced 0% on balance transfers for 18 months deals through MBNA Platinum Visa Credit Card and Virgin Credit Card.
Nationwide Credit Card has a 0% interest on balance transfers for 17 months deal with low 15.9% APR (variable) and commission free purchases abroad until 31st July 2011.
In choosing the right card for their balance transfers, cardholders need to take note of the balance transfer’s handling fee aside from the introductory offer period.
The balance transfer’s handling fee in UK is considered reasonable if compares to the 5% rate in the US. And with such a long period of 0% interest rate, it is not possible to get one without balance transfer’s handling fee.
If you decide to carry the balances beyond the introductory period, it is important to take into consideration the balance transfer interest rate after the 0% introductory offer ended.
Nonetheless, it is to the cardholder advantage in paying off the debt within the introductory offer period to resolve their credit card debt issue.
And if you decide to use the balance transfer card for new purchases, make sure you pay the amount in full every month to avoid any new debt.