Based on the top five providers, the average 0% duration on balance transfer deals currently sits at 15.6 months.
This is longer than the length of deals on offer at height of the balance transfer card boom and, as unsecured borrowing on loans remains expensive, it's balance transfer cards that many borrowers turn to as a cheap way to help them reduce their debts.
Card providers are once again recognising this need and this week we have seen Barclaycard upping the 0% duration available on its Platinum card from 15 to 16 months.
How does this offer stack up against the rest? Read on to find out more...
What's the deal?
Available to customers that are new to Barclaycard, the Platinum Credit Card offers 16 months interest-free on balance transfers, subject to a 2.9% handling fee. The card also offers three months interest-free on purchases. After the 0% period has ended, you will be charged a typical APR of 16.9%.
You will also benefit from the Barclaycard Freedom scheme that allows cardholders to earn and spend reward points at over 30,000 retailers, including Shell, Pizza Express and Yo! Sushi.
Every time you use the card at one of the retailers involved in the scheme, you earn up to 1% cashback as 'Reward Money'. This Reward Money can then be redeemed when you next spend, or you can keep it to put towards a bigger purchase later on.
Any catches?
For those wishing to transfer a balance to this card, you will be charged a fee of 2.9%. Any balances transferred to the card cannot total more than 90% of your credit limit, with the minimum transfer allowed being £250.
The 0% periods for balance transfers and purchases differ, meaning you will enter into a negative payment hierarchy, where the cheapest debt is paid off first, if you choose to use the card for both purchases and balance transfers.
This could be a sticking point for cardholders who wish to use the card for both to transfer a balance and to take advantage of the rewards earned with Barclaycard Freedom, as effectively they would have to wait for the 0% period to end before they could use the card for purchases.
Verdict
For those wishing to transfer a balance over then this is one of the market-leading deals as you will benefit from 16 months interest-free. NatWest also offers 16 months interest-free on its Platinum Card.
However, for those looking to make a big purchase and spread the payments with an interest-free deal, this wouldn't be the best option. At three months, this isn't the market leader for purchases, so you may want to consider instead the Tesco Clubcard Credit Card, which charges no interest on purchases for a more generous 13 months.
On the other hand, if you want to take advantage of the Barclaycard Freedom scheme but want the benefit of a longer 0% interest-free period on purchases, then the Barclaycard Platinum with Purchases card is your best bet, offering 12 months interest-free on purchases.
Top Tip
Make sure that this card is appropriate for your needs. If you do require a card for both purchases and balance transfers then you would be better off applying for a card such as the Sainsbury's Bank Credit Card that offers a 0% period of 12 months for both purchases and balance transfers.
As always, an impeccable credit score is required to apply for this market-leading card.
Barclaycard requires you to have a history of 'good credit conduct' of at least four years managing a commitment such as another card, loan, overdraft or mortgage.
Please note: Any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.
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