﻿If you’re looking to get your credit card debt under control, pay it off completely
or better manage your interest repayments, a balance transfer credit card could help.
In this video I’m going to run through the best balance transfer credit cards for 2022.
I’ll take you through two of the longest 0% interest deals currently available,
two cards with no transfer fees and a card specifically designed for those of you out there
with bad credit. And, at the end of the video, I’ve also included a section on some balance
transfer basics if you want to learn more or are new to the balance transfer world.
With the Sainsbury’s Bank 32 Month Balance Transfer Credit Card you’ll get, you guessed it,
32 months interest-free on your balance. There is a transfer fee of up to 3% but,
with this card, you’ll also be able to earn up to 5,000 bonus Nectar points in your first 2 months
as well as extra rewards every time you shop at Sainsbury’s, Argos, Habitat or TU clothing.
This card comes with no monthly or annual account fee. However, it is only available for new
Sainsbury’s Bank customers. If your goal with a balance transfer card is to clear your debt,
I would be very wary of those rewards points perks, as they could end up encouraging you
to use this card for everyday spending rather than pay off your balance.
The longest deal we found at the time of publishing this video is the MBNA Long 0%
Balance Transfer Credit Card which gives you up to 33 months interest-free on your balance transfer,
with a transfer fee of 2.69% for 2 months. And, all with no monthly or annual account fee.
When it comes to downsides, the main thing to consider is that the transfer fee will
increase from 2.69% to 5% on any transfers you make after that 2 months intro period is over.
And, again, if you don’t need a whole 33 months to clear your credit card balance,
it could be worth looking at some no-fee balance transfer cards.
The second longest no-fee deal we found was with the HSBC No Fee Balance Transfer Credit
Card Visa (I swear these card names are getting longer). This HSBC card will give you a 20 month
break on paying interest on your balance, with no balance transfer fee; and anyone accepted
on this card is guaranteed to get the full 20 months. You’ll also have access to discounts and
exclusive offers on shopping, leisure activities and meals out via the HSBC Home and Away scheme;
and all with no additional account fee. While 20 months is a pretty reasonable
interest-free period, there are longer deals available if you need more time to
pay off your balance. Another thing to remember is that the no fee deal
only applies to balance transfers made within the first 60 days of opening the account.
Our longest no fee deal at the time of publishing is another card from Sainsbury’s Bank. Their no
balance transfer fee card will give you up to 21 months interest-free on your balance with no fee.
With this card, you’ll also be able to earn 3 Nectar points for every £1
you spend in Sainsbury’s or Argos, and 1 Nectar point for every £5 spent elsewhere.
This card also comes with no account fee. Some downsides to consider include the fact that
you need an annual income of at least £10,000 to be eligible and people with low credit scores are
unlikely to be accepted. Also, if your goal with a balance transfer card is to clear your debt,
then it’s likely you won’t be using this card for everyday spending.
In which case, the Nectar point perks are pretty redundant.
If your credit score is not the best, a Fluid Credit Card could be a great option.
Fluid is geared toward those who might struggle to be accepted by more mainstream
cards, and offers 0% interest on balance transfer for 9 months with
a 4% fee. The application process is fast and straightforward, and many people get a
response the same day. The card also comes with no monthly or annual account fee.
This card is more of a stepping stone product to help you improve your credit score,
and isn’t ideal for long-term use. Once your credit has improved, if you still have a
balance to pay off, it might be worth checking out some of the longer 0% deals available.
Another downside is the 4% transfer fee, which is quite high compared to other cards, and will
increase to 5% on any transfers you make after the 9 months interest-free period is over. I will say,
though, that in general you would expect to see higher rates on credit builder credit cards.
One of the first things to know is that you can’t transfer a balance between two cards owned by the
same bank. That may sound obvious but, actually, a few of the more boutiquey, younger challenger
banks are actually owned by a bigger high street bank. For example, First Direct is owned by HSBC.
If you’re in any doubt who owns your bank account, click the first link under extra resources in the
description below, and use our searchable table to find out who owns your bank or the bank you
want to transfer your balance to. The second thing to know is that,
if there is a balance transfer fee, instead of paying that upfront as a separate fee,
in most cases it will simply get rolled into your new balance on your balance transfer card.
Every month, you must pay at least the minimum amount otherwise you could get
hit with penalties and some providers may even withdraw their 0% deal.
And finally, balance transfer credit cards still require you to meet a bunch
of eligibility criteria and you may get offered a shorter deal than what the provider advertised
if you don’t fully meet those criteria. For more info and to start comparing the
best balance transfer card for you, head to finder.com by clicking this link here.
If you enjoyed this video, give us a like, subscribe and hit that bell button to be the
first to know when a new video drops. Thanks for watching.