MBNA now offers a market leading 43 months interest free – with a balance transfer fee of 2.9 per cent.
Over the past few days a credit card war has erupted with four new cards offering 42 months or more on balance transfers.
These cards allow customers to transfer existing debts and pay them off without paying interest.
Barclaycard, Sainsbury’s Bank and nuba now offer 42 months on their 0 per cent balance transfer cards.
Those who move at least £1,000 in the first £60 onto the card will also get £20 cashback.
The rate that you will get depends on your credit history, meaning you may get a different deal if you apply.
You can use a ‘soft credit check’ such as MoneySavingExpert’s Eligibility Checker to see if you’ll be accepted for the card without leaving a mark on your credit score.
You’ll need to pay off the balance on the card before the end of the 43 months – otherwise you’ll pay 20.9 per cent interest on any remaining debt. Existing MBNA or nuba customers can’t get the deal.
Those who think that they can pay off their debts quickly could get a card with a lower fee, spread over less months.
Andrew Hagger, of Moneycomms.co.uk, said: “Although there is often some negativity around long term 0 per cent balance transfer offers, for people who have the financial discipline to manage their debts via this route, it can save a fortune in interest charges.
“Just make sure you set up a direct debit to cover the minimum payment – that way you won’t forfeit your promotional deal if you forget to make your payment on time one month.”
Earlier this month Lloyds Banking Group agreed to buy MBNA, one of the UK’s largest lenders, for £1.9billion.
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