By: Peter Stephens | Updated: 12th February, 2019.
The Halifax Low Fee 0% Balance Transfer Card may be your answer if you're looking for a very long balance transfer period, but want to keep the balance-transfer fee low. You get 24 months of 0% interest on balance transfers, and in exchange for that long duration, you do pay a fee on balance transfers. But at 1.5% (after rebate), the fee is lower than many longer-duration balance transfer cards. The card also gives you 12 months of 0% APR on purchases, which is a nice bonus.Read full review >
|A variable representative of||19.9% APR|
|A variable annual purchase rate of||19.95% p.a.|
|Based on borrowing||£1,200 over 12 months|
This example is for illustrative purposes and serves as a guide only. Your actual credit limit and rate will vary based on your individual circumstances and may differ from the example shown.
The Halifax Low Fee 0% Balance Transfer Card offers consumers the opportunity to reduce their interest payments on existing debt over a two-year time period. This could help to improve their cash flow and may also allow them to repay their debt earlier. It also has no annual fee, offers a 50% reduction on the 3% balance-transfer fee (for amounts transferred in the first 90 days), and 0% interest on purchases in the first 12 months.
It is possible to obtain a longer 0% interest period on balance transfers elsewhere. In addition, some balance-transfer credit cards do not charge a balance-transfer fee. As a result, depending on your individual circumstances, shopping around could yield a better deal.
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.
Although the 24-month balance transfer period could save an individual a significant sum in interest on existing debt on other cards, there are better deals available elsewhere. It is possible to obtain a longer 0%-interest period, while paying no balance-transfer fee. And for consumers who are willing to pay a fee for transferring existing debt, 0%-interest periods of up to 32 months are available. This could save an individual even more in interest payments, and provide them with more time to repay their debt.
The lack of an annual fee and a 0% interest rate on purchases for the first 12 months are relatively appealing features of the card. However, for most consumers seeking a balance-transfer card, the length of 0% interest period and the balance transfer fee may be the main considerations.
The 24-month 0% interest period advertised is representative. This means that it is offered to 51% of successful applicants, with remaining applicants potentially receiving a shorter time period. This could make the card less appealing compared to its peers depending on an individual’s personal circumstances.
The card is available to any UK resident over the age of 18 who has a regular income. Applicants must be free from any County Court Judgements, must not be subject to an Individual Voluntary Agreement and must not currently be bankrupt. It takes five minutes to find out if your application has been successful when applying online.
Applying for the card can be done online, by phone or in person at a Halifax branch. In order to apply, information such as outgoings, employment details, income figures, address details for the last three years and information about any other credit cards which are currently held will be required. The online application process takes around 10 minutes in total, and successful applicants will receive their card within seven days.
This card offers consumers the chance to significantly reduce the amount of interest they pay on existing debt for a period of two years. Although there is a balance-transfer fee (which is reduced by 50% for transfers made in the first 90 days after account opening) it is likely to be substantially lower than the interest rate on existing debt. With no annual fee and 0% interest on purchases for the first 12 months, the card seems to have appeal.
However, it is possible to obtain a longer 0% interest period on balance transfers with no fee. Therefore, for consumers with top-notch credit seeking to either avoid a balance-transfer fee or obtain a longer 0% balance-transfer period, there may be better options available elsewhere.
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