Related Credit Card Article

"Reduction in balance transfer fee from Barclaycard"

By admin | May 27th, 2009 | Balance Transfers

One major credit card supplier has recently thrown down the gauntlet by reducing the balance transfer fee that is charged on one of its credit cards, making it more affordable for consumers to transfer balances from existing higher interest credit cards onto the 0 percent interest balance transfer credit card.

This move could see other credit card companies following suit in order to remain competitive, which will be good news for consumers in the current financial climate.

The balance transfer fee that the credit card giant was charging on its Barclaycard Platinum before the announcement was made was 3 percent of the total amount being transferred onto the balance transfer card.

However, earlier this month the provider confirmed that this balance transfer fee has now been cut by 0.5 percent, taking the fee to 2.5 percent of the total amount being transferred. This could help those transferring larger balances to save a fair amount.

The credit card offers interest free credit on balance transfers for a twelve months period, so after paying the fee customers have twelve months within which to clear the transferred balance without being charged any interest at all. After the interest free period is over the APR reverts to the card’s standard one, which is 12.4 percent. The card also offers interest free credit on purchases for the first three months from when the account is opened.

The Managing Director at Barclaycard, Amer Sajed, stated: ‘This reduction will mean customers looking to move their balance now have to pay less to get a market leading deal.’

The credit card market continues to be competitive, and in order to keep up with competitors such as Barclaycard other credit card providers may take similar action in cutting the interest rates charged to credit card customers.

Tags: balance transfer fee cut, barclaycard, Balance Transfers

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