A NEW top 0% balance transfer credit card deal has hit the market that’s offering 32 months.
MBNA, which is part of Lloyd’s Banking Group, has launched the offer which means you can pay off debt over more than three years without paying any interest.
A 0% balance transfer credit card allows you to move debt from one card to another without paying interest for a set period.
This can help you pay off your debt faster.
With this particular offer you will initially pay a 3.2% fee on the balance you transfer across.
You will not be charged anything further on this transfer for 32 months, which is almost two and a half years.
So for example, if you had £1,000 on a previous credit card you would initially pay £32 to transfer this debt.
You’ll still need to make the minimum repayment each month, but this will go towards paying off the balance, rather than any interest.
You should aim to pay off your balance within the 0% period or you may need to move it again to avoid high interest charges.
However, if you use this credit card for any other purchases, you will be hit with a 24.9% APR on any further transactions.
APR stands for Annual Percentage Rate. It’s the yearly cost of borrowing money, including interest and other fees.
Credit card interest rates can range between 0% and 50%, but the average credit card charges about 18% or 19%, according to MoneySuperMarket.
[bc_video account_id=”5067014667001″ application_id=”” aspect_ratio=”16:9″ autoplay=”” caption=”Bank of Scotland to Close 22 Branches: A Digital Transformation” embed=”in-page” experience_id=”” height=”100%” language_detection=”” max_height=”360px” max_width=”640px” min_width=”0px” mute=”” padding_top=”56%” picture_in_picture=”” player_id=”default” playlist_id=”” playsinline=”” sizing=”responsive” video_id=”6368648461112″ video_ids=”” width=”640px”]So this particular rate for purchases with MBNA is slightly higher than other credit card deals you may see on the market.
To be accepted for this offer you must also meet a number of requirements laid out by the bank.
For starters, you must be aged 18 years or older to qualify and also make a minimum income of £14,000 a year.
You must also have a UK bank account and hold a permanent UK address for three years.
You can apply for the deal online at the MBNA webiste
If you are curious about applying the MBNA website has a credit card eligibility checker which tells you whether or not you could be granted access to one.
This can be found at www.mbna.co.uk/credit-card-eligibility-checker.html.
WHAT OTHER OFFERS ARE ON THE MARKET
There are plenty of other 0% balance transfer deals on offer at the moment.
For example, Lloyds Bank has a platinum 0% Balance Transfer Credit Card, which offers no fees for 35 months.
M&S Bank is also running a 0% balance transfer offer which runs for 42 months.
Both deals charge a 24.9% APR if you make any purchases on the card.
If you have credit card debt, start by working out how much you can afford in monthly repayments.
You can then work out how many months it will take before borrowed money is repaid in full.
Opt for the card with enough time to pay off your debt at the lowest possible fee.
You can compare credit card deals on comparison sites such as Moneysupermarket.com and moneyfactscompare.co.uk.
If you can’t repay all the balance during the longest time promotional period, you may need to switch again before the 0% offer finishes.
However, there is no guarantee that you will be able to do so.
When you move a debt from one credit card to another, it’s a good idea to close the original credit card or keep it tucked away and use for emergencies only.
This helps make sure you don’t end up racking up a fresh debt on the card while still paying off the balance transfer card.