If you’re looking to get your credit card
debt under control, pay it off completely or better manage your interest repayments, a
balance transfer credit card could help.
In this video I’m going to run through the
best balance transfer credit cards for 2022. I’ll take you through two of the longest
0% interest deals currently available, two cards with no transfer fees and a card
specifically designed for those of you out there with bad credit. And, at the end of the video,
I’ve also included a section on some balance transfer basics if you want to learn more or
are new to the balance transfer world.
With the Sainsbury’s Bank 32 Month Balance
Transfer Credit Card you’ll get, you guessed it, 32 months interest-free on your balance.
There is a transfer fee of up to 3% but, with this card, you’ll also be able to earn up to
5,000 bonus Nectar points in your first 2 months as well as extra rewards every time you shop at
Sainsbury’s, Argos, Habitat or TU clothing.
This card comes with no monthly or annual account
fee. However, it is only available for new Sainsbury’s Bank customers.
If your goal with
a balance transfer card is to clear your debt, I would be very wary of those rewards points
perks, as they could end up encouraging you to use this card for everyday spending
rather than pay off your balance.
The longest deal we found at the time of
publishing this video is the MBNA Long 0% Balance Transfer Credit Card which gives you up to
33 months interest-free on your balance transfer, with a transfer fee of 2.69% for 2 months. And,
all with no monthly or annual account fee.
When it comes to downsides, the main thing
to consider is that the transfer fee will increase from 2.69% to 5% on any transfers you
make after that 2 months intro period is over. And, again, if you don’t need a whole 33
months to clear your credit card balance, it could be worth looking at some
no-fee balance transfer cards.
The second longest no-fee deal we found was
with the HSBC No Fee Balance Transfer Credit Card Visa (I swear these card names are getting
longer). This HSBC card will give you a 20 month break on paying interest on your balance, with
no balance transfer fee; and anyone accepted on this card is guaranteed to get the full 20
months.
You’ll also have access to discounts and exclusive offers on shopping, leisure activities
and meals out via the HSBC Home and Away scheme; and all with no additional account fee.
While 20 months is a pretty reasonable interest-free period, there are longer
deals available if you need more time to pay off your balance. Another thing
to remember is that the no fee deal only applies to balance transfers made within
the first 60 days of opening the account.
Our longest no fee deal at the time of publishing
is another card from Sainsbury’s Bank.
Their no balance transfer fee card will give you up to 21
months interest-free on your balance with no fee. With this card, you’ll also be able
to earn 3 Nectar points for every £1 you spend in Sainsbury’s or Argos, and 1
Nectar point for every £5 spent elsewhere. This card also comes with no account fee.
Some downsides to consider include the fact that you need an annual income of at least £10,000 to
be eligible and people with low credit scores are unlikely to be accepted. Also, if your goal with
a balance transfer card is to clear your debt, then it’s likely you won’t be using
this card for everyday spending. In which case, the Nectar point
perks are pretty redundant.
If your credit score is not the best, a
Fluid Credit Card could be a great option. Fluid is geared toward those who might
struggle to be accepted by more mainstream cards, and offers 0% interest on
balance transfer for 9 months with a 4% fee.
The application process is fast
and straightforward, and many people get a response the same day. The card also comes
with no monthly or annual account fee.
This card is more of a stepping stone product
to help you improve your credit score, and isn’t ideal for long-term use. Once your
credit has improved, if you still have a balance to pay off, it might be worth checking
out some of the longer 0% deals available. Another downside is the 4% transfer fee, which
is quite high compared to other cards, and will increase to 5% on any transfers you make after the
9 months interest-free period is over. I will say, though, that in general you would expect to see
higher rates on credit builder credit cards.
One of the first things to know is that you can’t
transfer a balance between two cards owned by the same bank.
That may sound obvious but, actually,
a few of the more boutiquey, younger challenger banks are actually owned by a bigger high street
bank. For example, First Direct is owned by HSBC. If you’re in any doubt who owns your bank account,
click the first link under extra resources in the description below, and use our searchable table
to find out who owns your bank or the bank you want to transfer your balance to.
The second thing to know is that, if there is a balance transfer fee, instead
of paying that upfront as a separate fee, in most cases it will simply get rolled into your
new balance on your balance transfer card.
Every month, you must pay at least the
minimum amount otherwise you could get hit with penalties and some providers
may even withdraw their 0% deal.
And finally, balance transfer credit
cards still require you to meet a bunch of eligibility criteria and you may get offered
a shorter deal than what the provider advertised if you don’t fully meet those criteria.
For more info and to start comparing the best balance transfer card for you, head to
finder.com by clicking this link here.
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