MBNA is offering customers over three and a half years interest free with their latest credit cards.
A credit card battle has ensued as 4 cards offer 42 months and upwards on balance transfers. Customers are now able to pay off existing debts by transferring them over to these new cards and avoid paying any interest.Sainsbury’s Bank, Barclaycard and nuba are offering 0 percent balance transfers for a period of 42 months.
Market leader MBNA is offering interest free balance transfers for 43 months with a 2.9 per cent fee. They are also offering £20 cash back on customers who transfer a minimum of £1,000 in the first £60.
Your credit history will determine your rate, meaning that not everyone will be given the same deal. Customers wanting to apply but are not sure of their credit rating should use the MoneySavingExpert’s Eligibility Checker. They offer soft credit checks that have no effect on your credit score.
You must pay off the balance on the card within the 43 months or the remaining debt will incur 20.9 per cent interest. If you are already a customer of nuba or MBNA you won’t be eligible for the deal.
If you intend on paying off your debt quickly, you can apply for a lower fee over fewer months.
Spokesman for Moneycomms.co.uk Andrew Hagger says:
“Despite the fact that 0 per cent balance transfers don’t have the best reputation. For those who are capable of managing their debt effectively, utilizing a balance transfer credit card can save a large amount on interest fees.
The best way to handle this type of card is to pay your minimum payment via direct debit, this way you won’t risk losing out on the deal offered if you are ever late on your payment.”
At the beginning of the month Lloyds banking group made the decision to purchase MBNA for £1.9billion.