The number of 0% balance transfer credit cards has nearly halved in the past three years, even as the terms continue to shrink. As Mohamed Dabo reports, however, some great deals remain on the market.
Three years ago, in January 2017, there were 122 balance transfer deals on offer. Today, there are just 76 such deals available, according to figures from Moneyfacts. During the same time, the interest-free period, has fallen from 659 days to 536 days. And the longest interest-free period shrank from 43 months to 29.
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In spite of the declining market, great balance transfer deals can still be found, albeit with more diligence.
Credit card balance transfers have proved to be one of the remedies of financial hangover. Zero-balance transfers, in particular, help cardholders save money, simplify their finances, and reduce their debt.
Using this method, a cardholder gets a new card to pay off an old credit card at zero interest rate. Card issuers often charge a small fee for the service.
Here are some of the best deals currently available
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By GlobalDataAs of January 2020, the following 12 cards have some of the most favourable introductory offers with no interest charges and low fees.
Sainsbury’s 29-month 0% Spending Card
In September, the supermarket chain Sainsbury’s launched a 29-month interest-free 0% spending card. The company charges a 3% balance transfer fee. The card and the next one on our list, by Virgin Money, provide the longest interest-free period available at the moment.
Cardholders have the chance to earn up to 7,500 bonus points, or £37.50 worth, on their Nectar loyalty card in the first two months. This is in addition to the two points earned per £1 spent on Sainsbury’s shopping and fuel, and 750 bonus points awarded every time they spend £35 or more at Sainsbury’s.
There is, however, a money transfer fee of 29.95% with a £4 minimum.
Virgin Money 29-month Balance Transfer Card
The Virgin Money 29-month Balance Transfer Credit Card Mastercard has 0% interest for 29 months. There is an introductory fee of 3%.
The card also offers 0% for 20 months at a 4% fee for money transfer. For purchases, it’s 0% for 3 months; after which, there’s a 21.9% variable APR.
The card has no annual fee.
Barclay’s Platinum 28-Month Balance Transfer Visa
Barclay’s longest 0% transfer credit card has 0% interest for up to 28 months on balance transfers from the account opening date. However, transfers must be made within 60 days to benefit from the 0% offer.
The cardholder gets £20 cash back when they transfer a balance of £2,500 or more within 60 days of opening the account. Barclays charges a 1.75% balance transfer fee on the card.
This offer ends 5 February 2020.
The remaining offers are available in the US, but may or may not be available in other markets.
Discover it Balance Transfer
The Discover it Balance Transfer offers A 0% introductory APR for 18 months on balance transfers. Following that interest-free period, Discover will charge from 13.49% to 24.49% standard variable purchase APR.
By April 10, 2020, a 3% introductory fee will be charged on balances transferred. In addition, up to 5% fee for future balance transfers will apply.
There is a charge of $10 or 5% of the amount of each cash advance, whichever is greater.
Citi Diamond Preferred Card
For 21 months from the date of the first transfer, the Citi Diamond Preferred Card will offer 0% on balance transfers. After that, the variable APR will be 15.24% to 25.24% based on creditworthiness. All transfers must be completed within the first 4 months from the account opening.
There will also be a 0% APR on purchases for 12 months from the date of account opening.
If you transfer a balance with this offer, interest will be charged on new purchases and unpaid introductory balances after your 0% introductory APR on purchases has expired. This can be avoided by paying the entire balance (including any transfer balance) in full each month by the due date.
There is a balance transfer fee of $5 or 5% of the amount of the transfer, whichever is greater.
Citi Simplified Card
The Citi Simplified Card also offers a 0% introductory APR on balance transfers for 21 months. Again, all transfers must be completed within 4 months of the account opening. After that introductory period, a variable APR of 16.34% to 26.24% will be charged based on creditworthiness.
There will be a 0% introductory APR on all purchases from the date of the account opening. After that, the variable APR will be 16.24% to 26.24%, again based on creditworthiness.
This offer provides for a balance transfer fee of $5 or 5% of the amount of the transfer, whichever is greater.
Citi Double Cash Card
Citi Double Cash Card offers 0% introductory APR for 18 months on balance transfers. After that, it will charge a variable APR of 15.49% to 25.49% based on creditworthiness. However, balance transfers do no earn cash back.
Here again, you must transfer balances within 4 months of your account opening. The offer calls for a balance transfer fee of either $5 or 3% of the amount of each transfer, whichever is greater.
Chase Freedom Unlimited
Chase Freedom Unlimited offers a 0% introductory APR for 15 months from the account opening on purchases and balance transfers. After the introductory period, a variable APR of 16.49% to 25.24% will apply.
Chase will charge a 3% introductory balance transfer fee when you transfer a balance during the first 60 days your account is open. After that, the fee for the future balance transfers will be 5% of the amount transferred.
Chase also offers an unlimited 1.5% cash back on every purchase. There’s no minimum to redeem the cash. Further, the card issuer promises that your cash back rewards will not expire for as long as your account is open.
There is a balance transfer fee or either $5 or 5% of the amount of the transfer, whichever is greater.
Capital One Quicksilver Cash Rewards Credit Card
The Capital One Quicksilver Cash Rewards Card offers 0% introductory APR for 15 months. Then it charges 15.49% to 25.49% variable APR. There will also be a 3% fee on the amounts transferred within the first 15 months of the account opening.
The card has no annual fee, and it offers an unlimited 1.5% cash back on every purchase.
Cardholders can earn a one-time bonus once they spend $500 on purchases within 3 months from opening the account.
Capital One SavorOne Cash Rewards Credit Card
The Capital One SavorOne Cash Rewards Credit Card offers a 0% introductory APR for 15 months. After that, 15.49% to 25.49% APR will apply. The company will also charge a 3% fee on amounts transferred within the first 15 months.
This card has no annual fee. In addition, the cardholder can earn a 3% cash back on dining and entertainment; 2% at grocery stores; and 1% on all other purchases.
Blue Cash Everyday Card from American Express
The Blue Cash Everyday Card from American Express offers a 0% introductory APR for 15 months on purchases and balance transfers. After the introductory period, 14.49% to 25.49% variable APR will apply.
The card has no annual fee, and offers a 1% cash back on all purchases. It also gives the option of carrying the balance with interest or paying it in full each month.
Cardholders can get 3% cash back at US supermarkets, or up to $6,000 per year in purchases (then 1%). They can also get 2% cash back at gas stations and select US department stores. They get 1% cash back on all other purchases.
Cash back is received in the form of Reward Dollars that can be redeemed as a statement credit.
Bank of America Cash Rewards Credit Card
The Bank of America Cash Rewards Credit Card has 0% for the 15 billing cycles for purchases, and for any balance transfers made within 60 days of opening account.
After the introductory APR offer ends, a variable APR that’s currently 15.49 to 25.49 will apply.
A 3% fee (minimum of $10) will apply to all balance transfers. No annual fees.
Preferred Rewards members get 25% to 75% rewards with every purchase.
Cardholders can earn 3% cash back in the category of their choice: gas, online shopping, dining, drug stores, or home improvement/furnishings; and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined choice category grocery store/wholesale club purchases each quarter; beyond that amount, they will earn 1%.
There’s a 1% cash back on all other purchases.
