By: Peter Stephens | Updated: 21st November, 2018.
Lloyds Bank Platinum Low Fee 0% Balance Transfer Credit Card
Good for: Really long balance transfer period
Our Bottom Line
If what you’re looking for is a really long 0% interest period on your balance transfers, this Lloyds Bank Platinum Card may be what you’re looking for. Balance transfers need to be made in the first 90 days and you’ll pay a 1.4% effective fee (after rebate), but that’s often the tradeoff for longer-duration balance transfer cards. In exchange, you’ll get 32 months 0% interest on those balances. Add to that 12 months of 0% interest on purchases.
Full Lloyds Bank Platinum Low Fee 0% Balance Transfer Credit Card review coming soon!
Representative APR (variable):
Balance transfer fee:
Credit Rating Requirement: Good/Excellent
What I like about the Lloyds Bank Platinum Low Fee 0% Balance Transfer Card
Although the obvious appeal of the card is its balance-transfer offer, it also has a number of other features that may make it attractive to a range of individuals.
- No fee – This card charges no annual fee. Given that many people applying for it will do so because of the balance-transfer offer, this could keep total costs to a minimum during the balance-transfer period.
- Availability – This credit card is available to both new and existing Lloyds credit-card customers. Existing customers can apply for a second card and have the potential to receive the same deal as new customers.
- Balance-transfer offer – This Lloyds card has a 28-month balance transfer offer, which means that during the first 28 months, no interest is charged on all balances transferred in the first 90 days of card ownership. This could provide users with additional time to pay down, or even completely repay, their credit-card debts without incurring new interest charges. It could save them significant sums of money depending on the existing interest rate payable on their debt.
- Transfer fee rebate – Although the card advertises a 3% transfer fee for all balance transfers, this is discounted to 1.5% in the first 90 days of account opening. Any balance transfers made after the first 90 days of being a cardholder, though, are charged the full 3% transfer fee.
- Reduced interest – If an individual takes advantage of the balance transfer offer in the first 90 days of account opening, the reduction in interest payments over the 28-month 0% interest fee period could be significant. For example, take an individual with a £5,000 credit card debt paying an APR of 18.9% and monthly repayments of £220. Over the course of 28 months, they would pay back the outstanding amount, but in doing so, they would pay interest charges of £1,113. In contrast, a balance transfer of £5,000 to the Lloyds Bank Platinum Low Fee 0% Balance Transfer Card would mean a £75 transfer charge and no interest during the 28-month interest-free period.
- 0% on purchases – All purchases made in the first year of being a cardholder are interest free. While it may not be a good idea to add to any existing debts, 0% interest on new purchases may provide the cardholder with additional financial flexibility.
Why you can trust me
I have been writing for The Motley Fool since 2013, and have experienced the booms and busts of the UK economy for a number of decades both as an investor and a consumer. I have held various senior management positions during my career, while also setting up my own manufacturing company in 1996. It was subsequently sold in 2007. I have a keen interest in consumer finance, as well as in the stock market.
What could be improved
Although the Lloyds Bank Platinum Low Fee 0% Balance Transfer Card offers a number of positives for consumers, here are a few downsides to the card which could be improved.
- Transfer charge rebate period – Although a 1.5% transfer charge rebate during the first 90 days is a positive, extending that period would be welcome. It may provide consumers with more time to complete their balance transfers from other cards.
- Transfer fee – Speaking of that transfer fee, a 1.5% fee in the first 90 days and a 3% fee thereafter makes the 0% balance transfer offer less appealing. Of course, it is still likely to work out as being much lower than the equivalent interest rate being applied to the debt on a consumer’s existing credit card.
- International usage – The card charges a 2.95% sterling transaction fee when used abroad. This makes it relatively unappealing to use internationally, and means that cardholders are likely to require a second card with lower fees for business trips and holidays abroad.
How does the Lloyds Bank Platinum Low Fee 0% Balance Transfer Credit Card’s offer stack up?
The 28-month 0% interest period on balance transfers is not the longest available on the market. As much as 32 months of 0% on balance transfers is available elsewhere, and an interest-free period that long could provide additional breathing space for consumers seeking to cut interest costs over the next couple of years. However, in order to obtain a longer 0% interest period on balance transfers, higher transfer fees are often required. This dilutes the appeal of an additional four-month period to some degree.
Those seeking cards with no transfer fees can find that, albeit in exchange for a shorter 0% interest period on balance transfers. And there’s no cashback or rewards offered here, so those looking for either will have to look elsewhere. Therefore, if the core offer here doesn’t suit, it may be possible for a consumer to find an improved deal depending on their own circumstances.
The Lloyds Bank Platinum Low Fee 0% Balance Transfer Credit Card credit score
The 28-month 0% interest period on balance transfers is representative, which means it is only guaranteed to be available to 51% of applicants. The remainder may be offered a Classic Card, which has a higher APR and does not come with a balance-transfer offer.
Lloyds’ website states that it takes just five minutes to obtain a decision on whether an individual is eligible for the card. Since the card is available to anyone over the age of 18 who has a regular income and is free from bankruptcy, county Court Judgments, and an IVA, it could appeal to a variety of consumers.
How to apply
Applications for the card can be made online, in branch, or by phone. Details such as previous addresses (if you have lived in your current home for less than three years), annual income, and any current credit or store cards will be needed, as well as information such as outgoings and employment status. Overall, the online application process takes around 10 minutes, with a decision made in half that time.
Is the Lloyds Bank Platinum Low Fee 0% Balance Transfer Card right for you?
The card’s 0% interest period on balance transfers is its main selling point. As the earlier example showed, it could save an individual a significant sum of money in interest payments over the 28-month period. Alongside this, the rebate for half of the transfer fee in the first 90 days, and the 0% interest rate on purchases in the first 12 months, make the card even more appealing. While there are some drawbacks, such as no transfer-fee rebate after the first 90 days, the card does provide the opportunity for users to clear their debts more easily over a 28-month time period.