If you have a good credit record and credit card debt, this would be a good time to check out the current 0% balance transfer offerings as Tesco Bank has just zoomed to the top of the Best Buy table with a no fee offering.
The Tesco offer is for 12 months at 0%, so if you can clear the balance in that period it is a no brainer.
If you can’t clear the debt in a year, then you could look to transfer again at the end of the 12 months, or you might want to go for the greater security offered by Barclays 27 month offer (fee c. 3%) or NatWest/RBS’s 26month offers (also c.3% fee.)
Don’t forget the important points about 0% Balance Transfer offers:
- you must make the minimum payment each month, otherwise the 0% will probably be withdrawn
- don’t use these cards for spending – new spending won’t be at 0%, so either get a second card which has 0% on spending for a period (the current 0% purchase best buy is from Halifax which has 17 months at 0%) or get a cash back card
- you can’t guarantee that you can refinance them at the end of the 0% period. Although there is a lot of competition now, this may not last
- you will only get a 0% balance transfer if you have a good credit rating. If you are rejected, then leave it a while before reapplying as too many applications will harm your credit record.