Our bottom line
The Lloyds Bank Platinum Low Fee 0% Balance Transfer Credit Card has a range of appealing features. Its major selling point is the 22-month, interest-free period for balance transfers. It offers a competitive 1.99% transfer fee for balance transfers made in the first 90 days of account opening. The card also offers 0% on purchases over the first 12 months.
Although it is possible to find a longer interest-free, balance-transfer period or a card without a transfer fee, this card offers an appealing compromise between the length of the balance transfer period and the transfer fee charged.
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 22-month balance transfer offer, which means that during the first 22 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 1.99% 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 22-month 0% interest-free 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 22 months, they would pay back the outstanding amount, but in doing so, they would pay interest charges of around £1,000. 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 22-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.
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 period – Although a 1.99% transfer charge 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 1.99% 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 22-month 0% interest period on balance transfers is not the longest available on the market. Longer periods are 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 few months to some degree.
Those seeking cards with no transfer fees can find them, 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 22-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 22-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 22-month time period.
The Motley Fool receives compensation from some advertisers who provide products and services that may be covered by our editorial team. It’s one way we make money. But know that our editorial integrity and transparency matters most and our ratings aren’t influenced by compensation. Also, while we aim to feature some of the best products available, we do not review every product on the market. Learn more here. Any opinions or statements in this article belong to the author, and may be shared by The Motley Fool, however they were not provided or endorsed by our affiliate partners, unless expressly indicated.
The Motley Fool has recommended shares in Lloyds, Tesco and Barclays.